At the end of trading session on Tuesday, US stocks fell the most since September, mainly due to the disappointing results of the financial activities of the leading aluminum producer Alcoa Inc. On the market sentiment also affected the strengthening of the dollar and reduce the cost of oil futures.
Shares of Alcoa Inc. fell in price by 11% after the company posted income statement, which did not meet analysts' expectations. This is the maximum decrease in the value of shares per day since August 8, 2011, according to FactSet.
S & P 500 index closed at 26.93 points, or 1.2%, lower at 2136.73: all the main industrial groups finished the session in the red zone. Dow Jones Industrial Average index shed 200.38 points, or 1.1%, to 18 128.66. Nasdaq Composite Index fell 81.89 points, or 1.5%, to close at 5246.79.
The daily loss of industrial Dow Jones index and Standard & Poor's 500 were the highest since September 13, Nasdaq Composite - 9 September.
According to Ryan Larson, head of US equities trading at RBC Global Asset Management, «reporting disappointing Alcoa» became one of the factors fall of the indices on Tuesday.
Net income for the period from July to September rose to $ 166 million, or 33 cents per share, compared with the figure of $ 44 million, or 6 cents per share, obtained in the same period last year. Alcoa Adjusted profit was 32 cents per share. Revenue fell to $ 5.21 billion from $ 5.57 billion a year earlier, as confounding economists' average forecast.
Some analysts say that the growing expectations of a rate hike in the federal funds in December, pushing up the dollar and government bond yields.
"At the moment the probability of a rate hike in December is about 68%. This in itself puts pressure on the stock, as it is no secret that the markets fall at the mere mention of changes in US monetary policy ", - said Kent Engelke, chief economic strategist at Capitol Securities Management.
European stock indexes finished trading on Tuesday at mostly lower, led by a decline in the energy sector. Nikkei index rose nearly 1% on weaker yen.
Gold prices also fell. The yield on 10-year government bonds rose to 1.78%, the highest in more than four months.
Based on materials WELTRADE