First the scoreboard:
Dow: 13,343, -205.3, -1.5 percent
S&P 500: 1,433, -24.1, -1.6 percent
NASDAQ: 3,005, -67.2, -2.1 percent
And now the top stories:
- Two heavy hitters disappointed investors with their earnings announcements this morning. First was General Electric, which reported earnings right in line with expectations. However, revenue came in a little light. And management cut full year revenue guidance due to its GE Capital unit. "The overall environment remains difficult," said CEO Jeff Immelt. The company saw strength in infrastructure orders in China, Latin America, and Africa. Demand for wind turbines was expectedly weak.
- McDonald's missed on the bottom line. Even worse, management warned that global same-store sales growth was beginning to go negative. Also in the fast-food space, Chipotle Mexican Grill tanked after it too whiffed on earnings and revenue.
- Existing home sales fell to 4.75 million at an annual rate in September. This was right in line with expectations. However, the median home price was up 11.3 percent from a year ago.
- One source of uncertainty was China's leadership transition. According to Reuters, seven names have been identified for China's Politburo Standing Committee.
- It's unclear if there was any one thing to cause today's massive sell-off. Stifel Nicolaus' David Lutz told us it could be a combination of worries in Europe, options expiration, Nasdaq falling below certain key technical levels, asset rotation, and even a Canadian M&A deal falling apart.
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