Wednesday, January 19, 2011

Wall Street has worst drop in 2 months on banks, tech

The S&P 500 suffered its biggest decline in nearly two months as disappointing results from Goldman Sachs and Wells Fargo put a damper on the rally.

The Dow Jones industrial average fell 12.64 points, or 0.11 percent, to 11,825.29. The Standard & Poor's 500 Index lost 13.10 points, or 1.01 percent, to 1,281.92. The Nasdaq Composite Index dropped 40.49 points, or 1.46 percent, to 2,725.36.

European shares ended lower after hitting 28-month highs, as disappointing figures from Goldman Sachs and a fall in US housing starts hurt sentiment and prompted some investors to take profits.

The FTSEurofirst 300 index of top European shares ended 1.3 percent lower at 1,152.48 points, the lowest close in a week, after hitting 1,170, the highest since September 2008.

The Nikkei average rose for a third straight session, inching towards recent eight-month highs as a mostly upbeat start to the U.S. earnings season lifted expectations for Japanese firms to show further recovery.

The benchmark Nikkei ended the day up 0.4 percent or 38.12 points at 10,557.10.

The broader Topix index rose 0.6 percent to 936.87.