Stocks fall after low Starbucks and Toll Brothers’ Earnings Reported

EmploymentCrossing.com Homebuilder, Toll Brothers, and coffee chain, Starbucks, helped send Wall Street sharply lower Tuesday after giving investors more evidence that the housing market and consumer spending are getting significantly weaker. The Dow Jones industrial average sank more than 240 points. With the government and bond markets closed for Veteran’s Day, no economic reports are scheduled, however, the corporate earnings reports were enough to show investors that the economy is still weakening, perhaps more than Wall Street predicted. Starbucks reported lower sales, leading to profits that fell below analysts’ expectations. Starbucks shares fell 34 cent, 3.3% after the company released its earnings. Toll Brothers said fourth-quarter revenue fell 41% from the year ago period. Chairman Robert Toll said in a statement that the company was, “upended by the past month’s financial crisis,� and the economic uncertainty made it difficult to predict what profit would be like next year. Toll Brothers fell 46 cents, or 2.4 percent, to $18.49. General Motors Corp. shares plunged on Monday to their lowest point in 60 years, said it will cut 1,900 factory jobs on top of 3,600 cuts announced Friday. GM shares fell 55 cents, or 17 percent, to $2.81. “We’re in a situation where we really don’t know how deep a recession we’re in,� said Jim Herrick, manager of equity trading at Baird & Co.

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Revver | December 4, 2008

Tags:. .sank. .weaker. .homebuilder. .uncertainty. .employmentcrossing