Jan. 13 - Summary: Stocks slump on earnings jitters; Lulu and Sodastream hit hard; Wendy's raises outlook; U.S. automakers shine at Detroit auto show. Bobbi Rebell reports.
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Investors bracing for a slew of earnings sold stocks, as negative warnings pile up.
The Dow, the Nasdaq, and the S&P 500, all melting down on Monday.
Ten out of 11 earnings pre-announcements from S&P 500 companies lowered estimates, according to Thomson Reuters data.
They include: Lululemon. The upscale yogawear retailer cut its forecast for the fourth quarter- blaming weak sales in the first 2 weeks of January. The company is still struggling to recover from the lingering effects of a massive recall of its see- through pants and comments by its founder that some women's body shapes just actually don't work for the company's yoga pants.
And shares of Sodastream International plunging after it said the holiday season in the U.S. was challenging- and took down its full year revenue estimates.
On the upside: Wendy's shares jumped after the fast-food chain raised its earnings outlook.
Turning to the big auto show in Detroit, this year it's all about traveling in style. General Motor's redesigned Corvette snatching a title of the 2014 North American car of the year.
But, according to Jake Fisher from Consumers Reports, the 'wow' factor came from Ford.
(SOUNDBITE) JAKE FISHER, DIRECTOR OF AUTO TESTING, CONSUMER REPORTS (ENGLISH) SAYING:
"The Ford F150 came out this morning, and it's a complete aluminum body. So that's really interesting. We're not seeing that from a lot of automakers. It used to be high-end cars, these super cars that had aluminum body, now it's on America's best-selling vehicle."
In European action, a rally in the banking sector lifted stocks after regulators agreed to soften new leverage ratios for banks.
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