U.S. stocks extended a worldwide sell-off on deepening concern over the health of the global economy and Netflix Inc. and EBay Inc. dropped after reporting earnings.
The Standard & Poor’s 500 Index (CME:ESZ14) dropped 1.2% to 1,839.58 at 9:34 a.m. in New York. The measure is down 8.5% since reaching a record on Sept. 18. The Dow Jones Industrial Average fell 174.94 points, or 1.1%, to 15,968.80. The Nasdaq Composite Index retreated 1.3%.
“There’s a continuing worsening of the environment in Europe,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said in a phone interview. “It didn’t help to have a big Nasdaq name like Netflix disappoint significantly. A name like that being down that much is going to cause a fair amount of hedge fund pain.”
Some 22 S&P 500 companies are releasing quarterly results today, including Google Inc. and Schlumberger Ltd. Profit for the index members probably rose 4.8% in the third quarter and sales increased 4.2%, analysts projected.
Netflix tumbled 23%. The world’s largest subscription-streaming service said third-quarter user numbers fell short of its forecast and blamed a recent $1 price increase for new customers. The company expects fourth-quarter profit of 44 cents a share, compared with an 84-cent average projection by analysts.
EBay Inc. fell 3.7%. The company, which will split in two next year, projected sales in 2014 will be no more than $17.95 billion, trailing analysts’ estimates that called for $18.15 billion.
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