Dow Jones Tumbles 366.94 points,
The Dow Jones Industrial Average lost 367 points and closed at the lowest since the Federal Reserve cut its benchmark lending rate Sept. 18. Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. led financial shares to their worst week since 2002 after Wachovia Corp. said loan defaults reduced profit. Energy producers dropped the most in two years.
S&P 500 companies have posted an average profit decline of 0.6 percent in the third quarter, the first drop since 2002, according to Bloomberg data.
Weekly Drop
The S&P 500 fell 3.9 percent this week and the Dow average lost 4.1 percent. The Nasdaq declined 2.9 percent.
More than one-third of the 92 financial companies in the S&P 500 have reported third-quarter results. Their 17 percent average profit drop is the biggest since Bloomberg began tracking quarterly earnings growth in the third quarter of 1997.
Financial firms account for about 19 percent of the S&P 500's value and produced 27 percent of the index's profits last quarter, according to Bloomberg data.
Seems like US recession just begin, with the remaining two third of S&P 500 companies going to release their quarter result, we shall see.
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