Markets dive as strong U.S. dollar weighs on earnings
Tags: Microsoft
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U.S. stocks opened sharply lower on Tuesday, with Microsoft and Caterpillar (CAT.N -7.43%) shares tumbling after both posted earnings, while an unexpected decline in durable goods orders also weighed on sentiment.
The Dow Jones industrial average fell 222.56 points, or 1.26 percent, to 17,456.14, the S&P 500 lost 19.29 points, or 0.94 percent, to 2,037.8 and the Nasdaq Composite dropped 73.43 points, or 1.54 percent, to 4,698.33 points.
The strong U.S. dollar is biting into profits of U.S.-based multinationals as a parade of big bellwether earnings reflects damage on their balance sheets.
The U.S. dollar index is hitting peaks not seen in years, biting into sales and profits earned abroad.
Pfizer (PFE.N 1.16%) and Dupont (DFT.N 0.11%) are warning their 2015 profit will take a significant hit from the stronger dollar.
Procter & Gamble (PG.N -2.89%) is revising its foreign exchange targets, with profit dropping 31 percent on global sales weakness.
While Corning (GLW.N 2.63%) says its currency hedging program helped it beat street expectations.
Microsoft (MSFT.O -9.93%) said the soaring dollar was a factor in its disappointing numbers after the bell Monday.
www.google.com/+EricAu118
The Dow Jones industrial average fell 222.56 points, or 1.26 percent, to 17,456.14, the S&P 500 lost 19.29 points, or 0.94 percent, to 2,037.8 and the Nasdaq Composite dropped 73.43 points, or 1.54 percent, to 4,698.33 points.
The strong U.S. dollar is biting into profits of U.S.-based multinationals as a parade of big bellwether earnings reflects damage on their balance sheets.
The U.S. dollar index is hitting peaks not seen in years, biting into sales and profits earned abroad.
Pfizer (PFE.N 1.16%) and Dupont (DFT.N 0.11%) are warning their 2015 profit will take a significant hit from the stronger dollar.
Procter & Gamble (PG.N -2.89%) is revising its foreign exchange targets, with profit dropping 31 percent on global sales weakness.
While Corning (GLW.N 2.63%) says its currency hedging program helped it beat street expectations.
Microsoft (MSFT.O -9.93%) said the soaring dollar was a factor in its disappointing numbers after the bell Monday.
www.google.com/+EricAu118
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