News Summary: Bleak sales outlooks roil stocks

News Summary: Grim sales outlooks, Fed fears cause a rout in stock and bond markets

Associated Press

DOW DOWN: The Dow Jones industrial average fell 225 points, its worst day in nearly two months. The Dow is now down 2 percent for the week.

LOOKING GRIM: Wal-Mart and Cisco Systems, both of which are in the Dow, disappointed investors with poor sales forecasts. Wal-Mart fell 2.6 percent, Cisco fell 7.2 percent.

RATE SPIKE: Investors also dumped bonds over fear that the Federal Reserve may be closer to cutting back its bond-buying program. The yield on the 10-year Treasury note rose as high as 2.81 percent, the highest since July 2011. The yield is used to set rates on many kinds of loans including mortgages.

View Comments (0)