NEW YORK REPORT: Stocks fell yesterday, with blue-chips skidding to their longest losing streak since last September and the broader market to its lowest level in nearly five years as disappointing corporate earnings added to investor distrust.
Wall Street's reaction was mixed to comments by Federal Reserve chairman Mr Alan Greenspan. In his twice-yearly monetary policy testimony to Congress, Mr Greenspan lauded the US economy's resilience but warned that wounds from corporate scandals and a stock-market rout will take time to heal.
Dow component Caterpillar, the world's largest construction equipment maker, reported lower second-quarter earnings yesterday and slashed its full-year outlook as the modest US economic rebound failed to boost capital spending in construction and power generation as much as expected. The stock recovered partially by the end of the regular trading session, finishing down $2.19, or nearly 5 per cent, at $43, after the announcement sent shares down almost 11 per cent in early trading to a one-and-a-half-year low of $40.25.
- (Reuters)
