10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – U.S. stock indexes fell more than 2% after General Electric reported lower than expected earnings.

Global Markets Update

U.S. stocks fell after General Electric surprised the market with lower than expected earnings. GE reported 8% rise in sales to $42.24 billion but net income fell 6% to $4.3 billion. Financial services segment faced difficult market environment. Earnings per share fell to 43 cents from 44 cents a year ago. Frontier Airlines filed bankruptcy after struggling with rising fuel costs and high operating cost.

Frontier Airlines stock plunged 71% after it filed for protection from creditors. The company blamed the decision on its principal credit processor on unexpected increase in hold on cash from sale of airline tickets. The airline said it plans to operate full schedule and honor all tickets and reservations and will pay wages and suppliers.

Stocks in London fell after General Electric in the U.S. reported its profit decline in five years. The news sent markets in New York and Europe lower. In addition, mortgage lender trade associations forecasted tougher outlook for mortgage lending and asked the Bank of England to add more liquidity to the system. UK lenders group forecasted that mortgage volume may fall as much as 50%. A private equity group said that it will withdraw its offer for Friends and Provident at the end of the month.

Industrial production in India in February increased 8.6% after revised production in January gained 5.8%. The better than expected production data overshadowed the rise in inflation at the end of March. Wholesale inflation increased 7.4% for a year ending in the last week in March, forced the government to remove export incentives for sugar, rice and steel. Sensex edged higher by 0.7% or 112 to 15,807 and CNX Nifty added 0.95% to 4,777.80.

European Markets indexes

In London FTSE 100 Index closed lower 69.60 or 1.17% to 5,895.50, in Paris CAC 40 Index decreased 61.49 or 1.27% to close at 4,797.93 and in Frankfurt DAX index lower 100.75 or 1.50% to close at 6,603.57. In Zurich trading SMI decreased 53.69 or 0.73% to close at 7,258.96.

North American Markets indexes

Dow Jones Industrial Average dropped 256.56 or 2.04% to a close of 12,325.42, S&P 500 closed down 27.72 or 2.04% to 1,332.83, and Nasdaq Composite Index decreased 61.46 or 2.61% to close at 2,290.24. In Toronto TSX Composite closed down 219.81 or 1.09% to 13,689.77.

Of the 30 stocks in Dow Jones Industrial Average, 2 closed higher, 28 closed lower, and none was unchanged.

General Electric led the decliners in the Dow Jones Industrial with a plunge of 13% after it reported lower than expected earnings and lowered its earnings outlook. Intel dropped 3.5% followed by a loss in Disney of 3.3% and in American Express of 3.2%.

Wal-Mart and Procter & Gamble were the only two gainers with a rise of 0.4% and 0.04%.

Of the stocks in S&P 500 index, 56 stocks increased, 439 declined, and 5 were unchanged. Of the stocks in the index, 80 stocks fell more than 3% and none gained more than 3%.

General Electric led the decliners in the S&P 500 index with a loss of 13% followed by losses in Nvdia of 7%, in Varian Medical of 6.6%, in CIT Group of 6.5%, and in Hershey of 6.4%.

Ambac Financial led the gainers in the S&P 500 index with a rise of 2.9% followed by increases in Safeco of 2.4%, in UST Inc of 2.4%, in First Energy of 2.08%, and in Public Services Enterprises of 2%.

South American Markets Indexes

Brazil led the decliners in South American trading with a loss of 1.38% followed by decreases in Colombia of 0.95%, in Argentina of 0.90%, and in Mexico of 0.73%. Venezuela fell 0.35% and Chile gained 0.5%.

Asian Markets

In Tokyo Nikkei 225 Index closed higher 378.43 or 2.92% to 13,323.73, in Hong Kong Hang Seng index increased 480.69 or 1.99% closed to 24,667.79. In Australia ASX 200 index lower 7.10 or 0.13% to close 5,439.30. In Malaysia KL Composite index decreased 1.40 or 0.11% closed to 1,246.79.