Wall Street sold off on Tuesday as disappointing corporate reports gave a sour tone to the start of earnings season and investors digested possible changing dynamics for the upcoming U.S. elections. Bobbi Rebell reports.
Tough day for U.S. stocks as investors focus on earnings season. U.S. financial markets are expected to be more volatile as the earnings season turns the spotlight on valuations, while a tight race for the White House, and a potential U.S. interest rate hike by the year-end, add to the jitters. Alcoa kicking off the quarterly reporting with a big miss sending its shares down dramatically. Samsung is now scrapping the Galaxy Note 7. The stock lost almost $20 billion in market cap on the news, and the fiasco creates even more opportunity for Apple's new iPhone, according to Ross Gerber of Gerber Kawasaki: SOUNDBITE: ROSS GERBER, PRESIDENT AND CEO, GERBER KAWASAKI (ENGLISH) SAYING: "The new phone is a good phone, and the software is great. But this is just a fortuitous event that Samsung actually made a phone that explodes. Then replaced them with exploding phones. And this is a huge, huge error for Samsung, and really gives going into the Christmas season Apple just a great legway." Wells Fargo's chief financial officer says, the penalties tied to the bank's opening up unauthorized accounts won't impact third-quarter earnings much, according to the Wall Street Journal. The comments were made on a call with Wells Fargo senior executives, according to the newspaper. In Europe, shares were weighed down by weakness on commodity stocks.