PARIS Jan 14 European stocks dropped in early
trade on Tuesday, tracking sharp losses on Wall Street following
a number of disappointing earnings and outlook statements that
raised concern about profit growth.
Shares in German drugs distributor Celesio
tumbled 7.7 percent after suitor McKesson failed to get
enough shares for its takeover bid to succeed.
At 0804 GMT, the FTSEurofirst 300 index of top
European shares was down 1.1 percent at 1,310.50 points.
Wall Street's S&P 500 slid 1.3 percent on Monday
after a number of mid-sized companies posted weak earnings or
According to Thomson Reuters data, almost 10 out of every 11
companies that have had pre-announcements for the current
earnings season from S&P 500 companies have lowered estimates.
"We've been focusing a lot on macro data, but the real test
is coming, with the earnings season starting, and the market
might have been too optimistic about earnings recovery," a
Paris-based equity and exchange-traded funds (ETFs) trader said.
The focus will be on JPMorgan and Wells Fargo
, set to post quarterly results before the opening bell
on Wall Street on Tuesday.