North American stocks fell sharply on Tuesday morning after key U.S. bellwether stocks reported disappointing quarterly results.
The Dow Jones industrial average fell 125 points or 1.2 per cent, to 10,029. The broader S&P 500 fell 12 points or 1.1 per cent, to 1059. In Canada, the S&P/TSX composite index fell 94 points or 0.8 per cent, to 11,449.
International Business Machines Corp., Goldman Sachs Group Inc. and Johnson & Johnson led the declines after investors booed their second quarter results, particularly worst-than-expected revenues. IBM fell 4.7 per cent and dragged down a number of other names within the technology sector. Goldman Sachs fell 2.6 per cent and Johnson & Johnson fell 2.4 per cent.
Among the 30 stocks within the Dow, just two rose in early trading and both were key defensive names: Coca-Cola Co. and Wal-Mart Stores Inc. rose 0.1 per cent each.
Meanwhile, the Bank of Canada raised its key lending rate by a quarter of a percentage point, to 0.75 per cent, in a move that was widely expected. However, the central bank signalled that future rate hikes were uncertain given the murky domestic and global economic outlook. The Canadian dollar was relatively steady against the U.S. dollar, at 94.7 cents.
Within the TSX, Manulife Financial Corp. fell 1.2 per cent, Shoppers Drug Mart Corp. fell 2.1 per cent and Research In Motion Ltd. fell 1 per cent.