Asian markets ended mostly lower, extending Monday’s sharp slide. The Nikkei slipped .2% to 8488, the ASX 200 declined .1% to 4133, and the Hang Seng fell .8% to 18902. Toshiba tumbled 5.4% after announcing it would cut its production of NAND flash memory by 30% due to a supply gut. The Shanghai Composite rose .2% to 2147, and the Kospi advanced .3% to 1794.
In Europe, the major indexes traded lower. Moody’s cut its rating outlook for Germany, Luxembourg and the Netherlands, contributing to selling pressure. The CAC40 dropped .9% to 075, the FTSE fell .6% to 5499, and the DAX slumped .5% to 6390.
US markets skidded as the Dow tumbled 132 points to 12590, logging its 3rd straight loss triple-digit loss. The S&P 500 and Nasdaq both logged a loss of 1.2%. Rumors that Greece will need further debt aid added to selling pressure.
Cisco shares plunged 6.1% after announcing it would cut 1300 jobs, indicative of a slowdown. UPS tanked 5.1% after earnings missed estimates.
After the bell, Apple announced earnings which fell short of forecasts. The stock sank 5.5% in after hours trading.
Treasuries and Commodities
10-year notes rose 7/32 to yield 1.40%, and 30-year notes gained 23/32 to yield 2.47%.
Natural gas continued to rise, climbing 1.6% to 3.166, and crude oil added .5% to 88.55. Gasoline futures lagged behind, dropping 2% to 2.8255.
Copper fell .8% to 3.353, silver declined .5% to 26.90, and gold rose fractionally to 1578.20.
Agricultural futures dropped, thanks to rain in the Midwest, although it may be too late to save the corn crop. Wheat fell 3.7%, soybeans skidded 3.3%, and coffee tumbled 5.2%.
The Dollar rose modestly against most currencies on Tuesday. The Euro and Swiss Franc fell .4% to 1.2068 and .9953 respectively. The Euro-Yen hit a new record low of 94.12, and settled down .5% at 94.37. The Australian and Canadian Dollar both eased .1%. The Pound edged up .1% to 1.5516, and the Yen gained .2% to 78.18.
US flash manufacturing PMI slipped to 51.8 from 52.5, below forecasts, and the Richmond manufacturing index unexpectedly tumbled to -17 from -3. On a more positive note, the FHFA home price index climbed .8% last month, beating forecasts for a .5% gain.
Wednesday’s economic reports will include new home sales, weekly mortgage applications, and weekly oil inventories.
Earnings are due from Boeing, Bristol-Myers, Caterpillar, Ford, PersicCo, Whole Foods, Visa, and Zygna.