April 24, 2024

Stocks Open Lower on Poor Outlook From Hewlett-Packard

Hewlett- Packard lowered its earnings outlook for the rest of the year because it expects weaker personal computer sales. H.P.’s stock fell more than 6 percent in early Tuesday trading.

Home Depot and Wal-Mart Stores also reported results Tuesday. Wal-Mart said its profit rose 3 percent in the first quarter, but sales at stores open at least a year fell for the eighth quarter in a row.

Home Depot said net income jumped 12 percent in the first quarter, but sales slipped.

In early trading, the Dow was down 46.77 points, or 0.4 percent, to 12,501.60. The Standard Poor’s 500-stock index was flat, at 1,328.75 points. The Nasdaq composite was down 3.68 points, or 0.1 percent, to 2,778.63.

In economic data, the Commerce Department said Tuesday that housing starts and permits for new homes both fell in April as a surplus of new homes remained on the market and discouraged new construction.

The Federal Reserve said industrial output fell in April as the earthquake in Japan interrupted the supply of parts needed for auto construction.

Article source: http://www.nytimes.com/2011/05/18/business/18markets.html?partner=rss&emc=rss

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