The equities market and stock exchange traded funds saw no reprieve from the downward spiral Tuesday as weaker earnings results and ongoing Eurozone financial struggle pressures riskier trades.
United Parcel Service (NYSE: UPS), tracked as an economic bellwether, reduced its earnings forecast 4% for the year, pointing to global economic weakness and lower consumer confidence, reports Bernard Condon for the Associated Press.
“The economic data is raising questions about whether earnings won’t weaken even more,” Carl Yingst, chief market analyst at Joseph Gunner, said in the article. “Our guess is we haven’t seen the worst.”
“You look at UPS and FedEx and you think ‘they are sort of the temperature takers of what is going on and if they are tanking why should I step in front of that moving train,'” Cummins Catherwood, managing director at Boenning and Scattergood, said in a Reuters article.
According to Thomson Reuters data, 66.9% of the 145 companies in the S&P 500 have reported better-than-expected earnings for the second quarter. In past four years, 68% of companies have beat estimates.