Wall Street drops 1 percent on earnings, housing data

NEW YORK (Reuters) - Wall Street fell on Tuesday after disappointing revenues stood out in a flurry of quarterly corporate scorecards and housing data gave more evidence of a slowing economy.

Goldman Sachs Group Inc lost 1.3 percent to $144.13 after posting lower second-quarter earnings and revenue.

International Business Machines Corp fell 4.7 percent to $123.72 a day after reporting that revenues rose 2 percent but still missed estimates as new technology services contracts declined.

The reports are the latest in a string of corporate results showing foundering revenues. Investors are watching the top-line results for any signs of growth in the economy.

"It's all about revenue. We did this last summer where we would beat on the bottom line and miss on the top. Last year it didn't matter, the market went up. But this year the misses are not going to be tolerated," said Jamie Cox, managing partner of Harris Financial Group in Colonial Heights, Virginia.

The Dow Jones industrial average <.DJI> dropped 122.76 points, or 1.21 percent, to 10,031.67. The Standard & Poor's 500 Index <.SPX> lost 11.26 points, or 1.05 percent, to 1,059.99. The Nasdaq Composite Index <.IXIC> shed 34.14 points, or 1.55 percent, to 2,164.09.

Fellow Dow component Johnson & Johnson dropped 2.5 percent to $58.10 after the diversified healthcare company said revenue fell far short of expectations and cut its profit forecast for the second time this year.

Texas Instruments Inc also missed revenue expectations due to weaker-than-expected orders from one mobile phone customer, identified by analysts as Nokia .

The chipmaker's shares slumped 5.4 percent to $24.18, while the PHLX Semiconductor index <.SOXX> lost 3.4 percent.

Adding to the dour tone on Wall Street, U.S. housing starts fell more than expected in June to their lowest level in eight months, supplying further evidence the economy lost momentum in the second quarter. But a rise in permits offered a glimmer of hope that homebuilding could pick up.

Apple Inc , Yahoo Inc , Altera Corp and Gilead Sciences Inc are due to report later Tuesday.

(Reporting by Chuck Mikolajczak; additional reporting by Leah Schnurr; editing by Jeffrey Benkoe)

WhatsAppFacebookTwitterLinkedinBeloudBluesky