With lower than expected earnings for the past quarter, coupled with lowered forecasts by Walmart and Cisco, the DOW closed in the first triple digit downturn since June of this year.
Walmart expected an increase in revenue of 1 percent for same-store sales; however after revenue reports found a loss of 0.3 percent they were forced to lower their forecast for this quarter.
Cisco also reported a loss of up to 7 percent in early trading, along with the announcement they would be cutting 4,000 jobs. Cisco reduced their forecast for this quarter as well.
Investors are cautious in the wake of the Federal Reserve decision to reduce the buyback rate on bonds.
With back-to-school and upcoming holiday shopping, investors are uneasy after the fall in shopping trends this past month. As a result, Macy’s stock is down by 0.06 percent.
This climate of uncertainty in the investing world has lead to a fall in the DOW index, despite greater than projected decreases in first time unemployment claims.