With only two of the Dow Jones Industrial Average (INDEX: ^DJI ) components in the green, there are plenty of companies to blame for today's 229 point slide. As of 12:30 p.m. EDT, the index is at 13,116, down 1.72%. Again, today's drop can be directly attributed to earnings announcements and the continued uncertainty and fear that the world is sliding into a global slowdown.
So why are they down?
3M announced earnings this morning, meeting estimates for earnings per share of $1.65 but posting only 7.5 billion in revenue where analysts wanted to see $7.63 billion. But what really sent investors running for the hills was when the company announced that it was cutting back full-year guidance. The company previously said it would make between $6.35 and $6.50 per share, and now that forecast has been revised to $6.35 to $6.27 per share. The stock is the second-biggest loser of the day, down by 3.7%.
DuPont, the Dow component experiencing the biggest drop today, is down an astonishing 8.9% today. The company announced EPS of $0.44 -- below the $0.46 analyst were expecting. However, as with 3M, the real pain came when the company cut full-year guidance. Management is now expecting to make between $3.25 and $3.35 per share, whereas the company had previously set that range from $4.20 to $4.40.
Big Oil is also taking a beating today. Chevron and Exxon Mobil are down 2.9% and 2.15%, respectively, this afternoon. Investors previously had concerns that the world economy is slowing down, but those fears have now been confirmed by a number of companies this earnings season. WTI Crude is down 2.8% today, while Brent Crude moved lower by 1.56%. When worldwide industries slow down, oil consumption slows down, and thus the profits of companies like Chevron and Exxon take a hit.
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