Market Talk

US stocks fall, taking the Dow back a hair under 10000, after disappointing reports out of BofA and GE, and despite another strong report on industrial production.

DJIA loses 67 (0.7%) to 9996; the index climbed back above 10000 in the last hour, but couldn’t hold it. IBM weighed heavily as investors were disappointed with its earnings. Still, the Dow gained about 1.3% on the week, and is up for the second straight week, rising 5.4% over that time. S&P 500 loses 9 (0.8%) to 1088, Nasdaq Comp slides 16 (0.8%) to 2157. Crude climbs over $78.

Earnings reports drove gains early in the week, but fueled losses by the end. Last quarter, stocks had a pretty set pattern: earnings were down from the year before, sales were down, but the bottom line beat Wall Street expectations. That pattern was enough for investors — three months ago. Today, GE’s earnings fit that exact pattern, but the stocks dropped 4.2%. The expectations have been raised, for GE and IBM and everybody else. Whether they’ve been raised too much is the question, and it’s the question implicit in a number like Dow 10000.