Wall Street had its biggest drop in a month Tuesday as investors worried about company profits and the state of the economy. The S&P 500 fell 65.41 points, or 1.6%, to 4,071.63. The Dow Jones Industrial Average fell 344.57 points, or 1%, to 33,530.83. The Nasdaq composite fell 238.05 points, or 2% to 11,799.16. First Republic Bank lost almost half its value after disclosing details for the first time about the exodus of customers it suffered in March. The bank plunged 49.4% for the sharpest loss in the S&P 500 after it said customers withdrew more than $100 billion in deposits during the first quarter, the AP reports.
That doesn’t include $30 billion that big banks plugged in to build faith in their rival after the second- and third-largest US bank failures in history shook confidence. The size of the drop in deposits overshadowed First Republic’s beating analysts’ expectations for earnings at the start of the year. UPS fell 10% after it met profit forecasts but said it made less in revenue than expected. It also said its revenue for the full year will likely come at the low end of its prior forecast, citing a challenging economy and other factors.
Danaher was another big weight on the market, falling 8.8% despite reporting better earnings and revenue than expected. Analysts pointed to its trimming back its forecast for a key revenue measure over the course of the year. On the winning side, PepsiCo rose 2.3% after beating profit expectations. A report on Tuesday showed that confidence among consumers fell more sharply in April than expected, down to its lowest level since July. That's a discouraging signal when consumer spending makes up the biggest part of the US economy. A second report was more encouraging, saying sales of new homes rose by more than expected.
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