U.S. stocks open lower on earnings fears

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Photo courtesy of Business Recorder
Photo courtesy of Business Recorder

NEW YORK, Oct. 11 (PNA/Xinhua) – U.S. stocks opened lower Wednesday as investors held pessimistic expectations of the third-quarter earnings season and concerns over Europe remained.

Alcoa Inc., the largest aluminum producer in the U.S., Tuesday reported a third-quarter net loss of 143 U.S. million dollars, compared with net income of 172 million dollars in the same period of last year.

It also cut its forecast for global demand of aluminum by 1 percentage point to 6 percent this year due to unexpected slowdown of car sales in China, but it also said Chinese demand may pick up at the end of the fourth quarter thanks to stimulus measures.

Meanwhile, the International Monetary Fund said banks in Europe may need to sell off 4.5 trillion dollars of assets through 2013 if policy makers fail to implement fiscal tightening measures.

Shortly after the opening bell, the Dow Jones Industrial Average fell 63.36 points, or 0.47 percent, to 13,410.17. The Standard & Poor’s 500 Index was down 4.05 points, or 0.28 percent, to 1,437.43. The Nasdaq Composite Index dropped 5.15 points, or 0.17 percent, to 3,059.87. (PNA/Xinhua)

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