An Ugly Day for Stocks

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The initial GDP number is often revised substantially later, so it's unclear how seriously traders will take it.

Oil prices retreated after pushing up above $77 a barrel on Thursday. September NYMEX crude oil futures ended the day down 93 cents to $74.95 a barrel. Traders worried about reduced demand from a slower U.S. economy, Action Economics says.

Among the earnings news, Exxon Mobil's (XOM) profits fell 1% in the second quarter. The world's largest company reported earnings of $1.83, up from $1.72 because fewer shares are on the market due to a buyback program. Analysts were expecting earnings of $1.96 per share, according to Reuters Estimates, and stock dropped almost 5%.

Apple reported third quarter revenue of $5.41 billion and net profit of $818 million, or $0.92 per share, up from revenue of $4.37 billion and profit of $472 million, or $0.54 per share a year ago. Gross margin was 36.9%, up from 30.3% a year ago. The stock was up 6.4%.

Ford Motor surprised Wall Street by posting a profit in the second quarter of 31 cents. Revenues rose 6% as the company lost 17 cents a year ago.

3M (MMM) earned $1.25 per share in the second quarter, up from $1.15 per share and above analyst expectations of $1.18 per share. 3M was the only stock in the Dow average that ended higher.

U.S. Airways (LCC) was down after reporting earnings of $2.77 per share, vs. $3.25 a year ago. Revenues were slightly lower and the firm reported higher non-fuel expenses.

Dow Chemical (DOW) fell after reporting earnings of $1.07 per share, vs. $1.05 a year ago. Revenue rose 6%.

Black & Decker (BDK) disappointed investors with earnings of $1.75 per share, vs. $1.98 a year ago. Sales were flat, and the firm expects third quarter sales to be flat as well. The tool maker cited the weak housing industry and commodity inflation.

Aetna (AET) reported earnings of 85 cents per share, vs. 67 cents a year ago. Revenues were up 8.7%. The insurance firm raised its 2007 guidance by 5 to 7 cents per share.

Travelers Companies (TRV) reported earnings of $1.86 per share, vs. $1.36 a year ago. Gross written premiums were up 1%, and the insurance company raised its 2007 earnings guidance by 20 cents.

Ryland Group (RYL) reported a loss of $1.25 per share in the second quarter. The home builder's revenues fell 38%. Beazer Homes (BZH) also reported a loss, of $3.20 per share, with revenues down 37%.

Bristol-Myers Squibb (BMY) reported earnings of 36 cents per share, vs. 34 cents a year ago as sales rose 1%.

Raytheon Co. (RTN) reported earnings of 79 cents, vs. 61 cents a year ago. Sales were up 9%.

European stock markets plunged on Thursday. In London, the FTSE 100 index was off 3.15% to 6,251.20. Germany's DAX index dropped 2.39% to 7,508.96. In Paris, the CAC 40 index fell 2.78% to 5,675.05.

Asian markets were also down on Thursday. In Japan, the Nikkei index was off 0.88% to 17,702.09. In Hong Kong, the Hang Seng index fell 0.64% to 23,211.69. In mainland China, the volatile Shanghai Composite index was up 0.52% to 4,346.46.

Treasury Market

Treasury prices spiked on a flight to safety from lower U.S. and European stocks. The 10-year note was up 29/32 to 97-25/32 for a yield of 4.78%; the 2-year note was up 09/32 to 100-03/32 for a yield of 4.56%; and 30-year bonds were up 1-03/32 to 96-28/32 for a yield of 4.95%.

Steverman is a reporter for BusinessWeek's Investing channel.