US futures tumble on weak corporate earnings

AP News
Posted: Oct 23, 2012 9:12 AM

NEW YORK (AP) — Stock futures fell sharply Tuesday, extending a sell-off from the previous day on weak corporate earnings.

Dow Jones industrial futures slumped 155 points to 13,137. The broader S&P futures gave up 18.40 points to 1,411.70. Nasdaq futures fell 29.75 points to 2,658.

DuPont will cut 1,500 jobs as profits fell sharply this quarter and the company cut its earnings expectations for the year. Profits for UPS fell on slowing global trade and 3M Co. is reducing its profit expectations for the year due to "current economic realities."

Harley-Davidson posted a 27 percent drop in net income.

There are also no immediate expectations for action from the Federal Reserve, which begins a two-day meeting Tuesday. The Fed said last month that it would spend $40 billion every month on bond purchases to keep interest rates low. Most expect that the Fed will let that action play out further.

Facebook and Netflix will post earnings after the bell Tuesday with investors in the tech sector already spooked by earnings last week from Google. Google suffered the biggest single day share sell-off since 2008 after revenue fell short.

Shares of both Facebook and Netflix were in negative territory before the market opened.

One of the companies posting increased profits is Reynolds American, nation's second-biggest tobacco company.