Wall Street and exchange traded funds (ETFs) are feeling woozy this morning after a slew of less-than-stellar earnings reports. Now that credit markets are improving, the focus is turning to the corporate earnings that have been issued in recent days, many of them heightening fears of a deep recession.
Hundreds of companies will be releasing their numbers for the third-quarter and in some cases, they will be making fourth-quarter forecasts, says Tim Paradis for the Associated Press.
Wachovia (WB) reported that its profit fell 28% and that it will cut 10% of its workforce. But banks aren’t the only sector getting smacked – Boeing’s (B) earnings fell 38% as a strike stopped production of commercial jets. The company already has a backlog of orders.
Tech companies have been hit hard on a drop in consumer and business spending, reports Martin Crutsinger for the Associated Press.
Treasury Secretary Henry Paulson said that it will take awhile for the eocnomy to stage a true turnaround, even with the steps the government has already taken.
Oil prices keep sliding this morning on reports of huge stockpiles in both crude and gasoline, according to the Associated Press. Mid-morning, oil is down to $68.25 a barrel.
United States 12 Month Oil (USL) is down 17.6% year-to-date.