Stocks Decline as Earnings Fall Short
Stocks turned in another lackluster performance on Tuesday after weaker than expected earnings from Alcoa, AMD’s warning and WaMu’s attempt to restore its balance sheet.
The Dow fell -35.99, the Nasdaq Composite rose -16.07 and the S&P 500 -7.00.
Washington Mutual
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PowerRating) raised $7 billion in cash from a group of investors, led by TPG, Inc. WaMu sold 176 million shares priced at $8.75 per share, and 55,000 preferred shares. The company also issued earnings guidance substantially below forecasts, slashed its dividend and announced 3,000 job cuts. WM shares lost 10.2%.
Alcoa
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PowerRating) missed first quarter estimates by $0.04 on a 52% drop in earnings. AA shares closed down -0.7%.
Shares of Advanced Micro Devices
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PowerRating) fell 4.9%, after the company announced Q1 earnings will be lower than expected. AMD also plans to reduce its workforce by 10%.
Novellus Systems
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PowerRating) issued first quarter guidance below consensus estimates, and its shares lost 8.1%.
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