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U.S. stocks tumble as earnings season begins

Xinhua, October 12, 2016 Adjust font size:

U.S. stocks traded sharply lower around midday Tuesday as investors focused on the third quarter earnings season.

By noon, the Dow Jones Industrial Average dropped 160.97 points, or 0.88 percent, to 18,168.07. The S&P 500 lost 20.98 points, or 0.97 percent, to 2,142.68. The Nasdaq Composite Index slumped 64.41 points, or 1.21 percent, to 5,264.26.

Alcoa Inc. kicked off the earnings season by missing estimates on both the top and bottom line. Its shares plunged nearly 10 percent around midday Tuesday.

Before Tuesday's opening bell, the U.S. aluminum giant announced net income of 166 million U.S. dollars, or 0.33 dollar per share for the third quarter of 2016, on revenues of 5.21 billion U.S. dollars.

The latest data from Thomson Reuters showed that the S&P 500 companies' blended earnings in the third quarter of 2016 are expected to decline 0.7 percent year on year, while the revenues are forecast to increase 2.4 percent.

Oil prices were also in focus, which retreated around midday Tuesday as traders became cautious after recent solid gains.

There is no major economic data due Tuesday. Investors will keep a close eye on the Federal Reserve's minutes from its September meeting scheduled for release on Wednesday, for more clues on the timing of a next rate hike.

On Monday, U.S. stocks ended higher as Wall Street digested the latest information from Sunday's second U.S. presidential debate amid rising oil prices. Enditem