The Dow Jones Industrial Average (INDEX: ^DJI) was down 0.41% to 12682.44 today at 10:30 a.m. EST after GDP data was lower than investors expected. Leading the Dow down is Chevron (NYSE: CVX), which has plunged 2.85% to $103.55 after it reported bad earnings. Adding to the bad news for Chevron is news of potential criminal charges against Chevron executives in Brazil, in addition to the $11 billion civil suit, both relating to the company's November oil spill.
Chevron missed lowered analyst expectations for both earnings per share and revenue. Chevron reported earnings per share of $2.58; analysts had been expecting $2.85. For revenue, the company reported $60 billion versus analyst expectations of $71 billion. Production increased to 2.64 million barrels per day from 2.60 million barrels per day last quarter.
Legal battles
Chevron is currently fighting two major legal battles. The first is in Ecuador, where the company is contesting an $18 billion judgment against it by the Ecuadorian courts. The second is an $11 billion civil lawsuit in Brazil after the 2,400-barrel spill in November. The latter is heating up today, as Reuters is reporting that Brazilian prosecutors are going to press criminal charges against Chevron's Brazil executives.
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