US stocks tumble as earnings season begins

US stocks tumble as earnings season begins

New York, Oct 12 (IANS) US stocks traded sharply lower on Tuesday as investors focused on the third quarter earnings season.

The Dow Jones Industrial Average dropped 160.97 points, or 0.88 per cent, to 18,168.07. The S&P 500 lost 20.98 points, or 0.97 per cent, to 2,142.68, Xinhua news agency reported.

The Nasdaq Composite Index slumped 64. 41 points, or 1.21 per cent, to 5,264.26.

Alcoa Inc. kicked off the earnings season by missing estimates on both the top and bottom line. Its shares plunged nearly 10 per cent around midday.

Oil prices were also in focus, which retreated around midday on Tuesday as traders became cautious after recent solid gains.

There is no major economic data due Tuesday. Investors will keep a close eye on the Federal Reserve’s minutes from its September meeting scheduled for release on Wednesday, for more clues on the timing of a next rate hike.

On Monday, US stocks ended higher as Wall Street digested the latest information from Sunday’s second US presidential debate amid rising oil prices.