At midday, Dow was at 12,443, down 105 points
NEW YORK (AP) — Tech giant Hewlett Packard dragged the Dow Jones
industrial average lower on Tuesday. Worries over the economic
growth also weighed on stocks and drove bond yields to their lowest
levels this year.
Hewlett Packard Co., the world’s largest technology company by
revenue, lowered its earnings outlook for the rest of the year. The
company expects weaker sales of personal computers. HP’s stock fell
9 percent, more than any other company in the Dow average.
Economic reports also raised concerns about the economy’s strength.
The Federal Reserve said U.S. factories produced fewer goods in
April for the first time in 10 months. The Commerce Department said
new home building plunged. Apartment construction plummeted more
than 28 percent.
The two reports drove traders into U.S. government bonds, pushing
yields to their lowest level this year. The yield on the 10-year
Treasury note sank to 3.10 percent. When bond prices rise, their
yields fall.
“There’s a high degree of caution right now,” said Jack Ablin,
chief investment officer at Harris Private Bank in Chicago. “People
are worried about big picture issues that need to be resolved.”
In early afternoon trading, the Dow is down 105 points, or 0.8
percent, to 12,443. The Standard & Poor’s 500 index is down 6
points, or 0.4 percent, to 1,324. The Nasdaq composite is down 13
points, or 0.5 percent, to 2,769.
