Stocks opened lower Tuesday, after another batch of earnings reports that showed weak revenues and more evidence of a struggling housing market. Goldman Sachs and IBM tumbled.
The Dow Jones Industrial Average was down more than 100 points, led by Cisco , IBM and Johnson & Johnson.
In this morning's economic news, housing starts hit their lowest level in eight months in June, according to the Commerce Department, providing further evidence that the economy lost momentum in the second quarter, but a rise in permits offered hope that homebuilding was poised to pick up.
This follows the latest news out of the housing sector: A gauge of homebuilder sentiment fell to 14 in July, its lowest level in more than a year, said the National Association of Home Builders on Monday.
Goldman Sachs shares fell after the company reported earnings that beat Wall Street views, but revenue came in shy of what analysts had been expecting.
Johnson & Johnson shares were also lower after the health care giant posted a 7.5 percent increase in quarterly incomedespite ongoing recalls of popular nonprescription medicines keeping sales flat. The company also reduced its profit forecast for the year by 15 cents a share.
The earnings compounded disappointment over after-the-bell reports Monday from IBM and failed to meet investor expectations.
Meanwhile, PepsiCo reported a profit just above analysts' expectations, helped by strength in international snack and beverage markets and the recent acquisition of its North American bottlers.
Apple and Yahoo are scheduled to report after the closing bell.
In corporate news, Toyota said it has been subpoenaed by a New York grand jury for documents related to a problem with a steering mechanism in some of its vehicles.
Meanwhile, a day after Amazon.com announced that it's now selling more Kindle books than hardcover books, Japan's Sharp has announced that it will be the latest company to enter the e-reader and e-book market.
BP will be allowed to keep its damaged Gulf well capped for another day, after tests determined that nearby seepage was not related to the leak.
And China is denying an International Energy Agency (IEA) report that it surpassed the U.S. last year to become the world's biggest energy user, saying the IEA had overestimated the country's energy consumption.
European shares were broadly lower, but mining firms made gains as metal prices rose on a weakening dollar. Asian indexes ended mixed, but mostly higher, with Chinese shares leading the gains.
TUESDAY: Earnings from Apple and Yahoo
WEDNESDAY: Weekly mortgage applications; Bernanke testifies before Congress; weekly crude inventories; earnings from Coca-Cola, Morgan Stanley, UTX, Wells Fargo, USBancorp, eBay and Qualcomm
THURSDAY: ECB meeting; weekly jobless claims; Fed's Dudley speaks; existing-home sales; leading indicators; earnings from AT&T, Caterpillar, 3M, Travelers, UPS, BB&T, Fifth Third, KeyCorp, Nokia, PNC Bank, SunTrust, Amazon, American Express, Microsoft and Capital One
FRIDAY: EU bank stress-test results; earnings from Ford, McDonald's
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