After moving sharply lower in early trading on Wednesday, stocks have seen some further downside over the course of the morning. The major averages have slid firmly into negative territory, offsetting the strong gains posted in the previous session.
The sell-off on Wall Street comes on the heels of a disappointing batch of earnings news from big-name companies such as Bank of America (BAC).
Shares of Bank of America are down by 4.7 percent after the financial giant reported first quarter earnings that rose sharply year-over-year but came in below analyst estimates.
Semiconductor giant Intel (INTC) has also moved to the downside after reporting slightly weaker than expected first quarter earnings and forecasting a drop in revenues in the current quarter.
Following the news from Intel, substantial weakness has emerged among semiconductor stocks, as reflected by the 3.5 percent drop by the Philadelphia Semiconductor Index. Cirrus Logic (CRUS) is posting a particularly steep loss after providing disappointing guidance.
Oil service stocks have also moved sharply lower on the day, dragging the Philadelphia Oil Service Index down by 3.3 percent. The weakness among oil service stocks comes amid a notable decrease by the price of crude oil.
Steel, housing, computer hardware, and networking stocks have also come under pressure, reflecting broad based weakness on Wall Street.
The major averages are currently posting steep losses, near their lows for the session. The Dow is down 177.33 points or 1.2 percent at 14,579.45, the Nasdaq is down 68.10 points or 2.1 percent at 3,196.53 and the S&P 500 is down 26.31 points or 1.7 percent at 1,548.26.
by RTT Staff Writer
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