US stocks down

Rising concern over violence in the Middle East gave US investors yet another reason to sell today, sending the Dow Jones industrial average down 135 points despite another batch of solid earnings reports.

With the growing possibility of higher interest rates an ongoing concern on Wall Street, analysts said investors already inclined to pull money out of the market were further unnerved by developments in the Middle East.

“I think the quagmire of geopolitical news is basically what’s keeping the market from responding to the good economic news and good earnings reports,” said Peter Cardillo, chief strategist at SW Bach & Co.

The Dow plunged 135.56, or 1.3%, to 10,342.60.

Broader stock indicators also dropped sharply. The Standard & Poor’s 500 index was down 15.70, or 1.4%, at 1,122.41, and the Nasdaq composite index fell 42.99, or 2.1%, to 1,989.54.

An attack in Syria that killed four people on Tuesday and the continuing violence in Fallujah, Iraq intensified the foul mood that has sent US stocks lower for more than two weeks.

Today’s loss erased gains made by the major indexes over the past four sessions. The selloff hit nearly every sector, with only utilities posting modest gains.

Boeing swung to a profit in the first quarter, led by growth in its defence business. The company, which climbed 48 cents to $44.03, also upped its annual earnings forecasts based on an expected increase in commercial aircraft deliveries.

Comcast executives said a lack of interest from the The Walt Disney Co’s board led Comcast to drop its bid for the entertainment conglomerate, which some analysts said undervalued Disney’s holdings.

Comcast also posted earnings of 3 cents per share for the quarter. Comcast was up 23 cents at $30.20, while Disney dropped 34 cents to $23.84.

Pharmaceutical company Bristol-Myers Squibb rose 71 cents to $25.43 as it reported earnings that beat expectations by 2 cents and reaffirmed its forecasts for the year.

McDonald’s comeback, launched by its late chief executive Jim Cantalupo, continued to fuel earnings at the fast-food giant. McDonald’s posted a 56% increase in earnings from a year ago, meeting Wall Street expectations. McDonald’s gained 41 cents to $27.61.

Nortel Networks was down 1.60, or 28%, at $4.04 after it fired its chief executive, chief financial officer and comptroller over an accounting scandal. The company’s first quarter earnings will be delayed, and it will also review and possibly restate its 2003 earnings.

Declining issues outnumbered advancers by about 4 to 1 on the New York Stock Exchange, where volume came to 1.85 billion shares, compared with 1.51 billion at the same point Tuesday.

The Russell 2000 index of smaller companies fell 13.70, or 2.3%, to 577.06.