Stocks slump on weak revenues from Goldman, IBM

July 20, 2010 7:05:00 AM PDT
Stocks are falling after revenues from Goldman Sachs and IBM came in lower than investors expected.

The miss from the leading investment bank early Tuesday was the latest sign of weakness in revenues in this corporate earnings season. Late Monday, IBM reported revenues that were also lower than expected.

A downbeat report on the housing sector didn't help. The Commerce Department said home construction fell last month to the lowest level since October.

In the opening minutes of trading, the Dow Jones industrial average fell 120.26, or 1.2 percent, to 10,034.17. The broader Standard & Poor's 500 index fell 11.90, or 1.1 percent, at 1,059.35 and the Nasdaq composite index fell 30.12, or 1.4 percent, to 2,168.11.