NEW YORK, Oct. 14 (Xinhua) -- Wall Street retreated from early boom Tuesday, as gloomy corporate earnings outlook overshadowed a 250 billion U.S. dollars plan to directly buy shares in big banks.
PepsiCo briefly tumbled the most in 19 years, after it lowered the profit forecast on reduction in customers spending. Moreover, Microsoft, the world' largest software marker, fell, as Credit Suisse Group AG cut its profit estimates.
Banking stocks were among best performers and briefly sent Dow Jones up over 400 points in early trading, as President Bush said Tuesday the government will inject more than a third of the 700 billion dollars bailout in the nation's major banks. Both Citigroup and Goldman Sachs gained more than eight percent.
Banks, driven by the government's new step, appeared to be more willing to lend to each other. The London interbank offered rate, or Libor, for three-month dollar loans fell to 4.64 percent from 4.75 percent. Investors hope that recent steps taken by governments worldwide will help free credit markets.
The Dow Jones fell 52.33 to 9,335.28. Broader indexes also went lower. The Standard & Poor's 500 index slipped 5.80 to 997.55; and the Nasdaq dipped 49.17 to 1,795.08.
