US stocks have slumped at the open after investors were spooked by a new raft of downbeat forecasts from Intel and other bellwether companies.
The technology-laced Nasdaq Composite Index lost 37.17 points, or 1.8 per cent, at 2,030.15. The blue chip Dow Jones industrial average fell 69.35 points, or 0.65 per cent, at 10,537.04 and the broader Standard & Poor's 500 Index was down 8.01 points, or 0.66 per cent, at 1,206.43.
Adding to the gloom was a rise in retail inflation as measured by the Consumer Price Index (CPI).
Prices paid by US consumers last month grew more than market expectations, according to the economic data issued ahead of today’s opening on Wall Street.
The June consumer price index rose 0.2 per cent against an expected rise of 0.1 per cent. The core CPI, excluding volatile food and energy components, rose 0.3 per cent. It was forecast to rise 0.2 per cent.
Stocks climbed yesterday as investors looked beyond the wave of dreary quarterly earnings reports and focused on upbeat forecasts instead. The mood on Wall Street turned optimistic as some companies' deteriorating results still managed to meet or beat analysts' estimates, including Dow component Caterpillar Inc.
But after the closing bell, major tech names like computer chip maker Intel, software firm Veritas Software and computer maker Apple Computer issued forecasts that ranged from tepid to downright gloomy.
Intel fell $1.16 to $28.74, Apple was off $3.17 at $21.93 and Veritas lost $9.66 at $40.76.