Weak earnings, falling oil prices push stocks down

Disappointing earnings, falling energy prices push stocks lower in early trade on Wall Street

Associated Press
Stocks fall on signs of slowing global economy
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In this Tuesday, April 16, 2013, photo, specialist Paul Cosentino, left center, works at his post on the floor of the New York Stock Exchange. World stock markets were mixed Wednesday, April 17, 2013 with Asian stocks boosted by positive U.S. data while European shares fell over worries about Germany in the wake of a downbeat investor survey. (AP Photo/Richard Drew)

NEW YORK (AP) -- Disappointing earnings reports and falling energy prices pushed stock prices lower in early trading on Wall Street Wednesday.

Bank of America fell 4 percent to $11.80 after reporting earnings that fell short of analysts' expectations. The lender also said that it had agreed to pay $500 million to settle a class-action lawsuit brought by investors who bought mortgage investments from Countrywide Financial, a lender it acquired in 2008.

Energy stocks dropped 1.9 percent, the most of the 10 industry groups in the Standard & Poor's 500 index, as the price of oil dropped for the fourth day in five. The price of crude has declined 7 percent in the last five days.

The stock market has had a roller coaster ride this week. The Dow logged its biggest drop in five months Monday, 265 points, on concerns about a slowdown in economic growth in China and as the price of gold had its biggest plunge in 30 years. The index won back more than half of that loss a day later following strong housing and earnings reports.

The Dow Jones Industrial average was down 137 points, or 0.9 percent, to 14,620, as of 10:22 a.m. EDT Wednesday. The index is down 1.6 percent this week. The S&P 500 dropped 19 points, or 1.2 percent, to 1,555 and is 2.1 percent lower since the open bell on Monday.

Among other stocks making big moves, Textron, a maker of small aircraft, plunged 13 percent to $25.61 after the company cut its outlook for business jet deliveries. The Bank of New York Mellon fell 3 percent to $25.76 after it reported a first-quarter loss following a hefty $266 million tax-related charge.

The yield on the 10-year Treasury note, which moves inversely to its price, fell to 1.71 percent from 1.73 percent.

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