The Central Bank Raised Interest Rates By &Nbsp; &Nbsp; Dow Fell 1.48% On Tuesday.

As of 4:00 pm Eastern time,

Bad financial results

Goldman Sachs, Bank of America and other big companies' poor financial performance and China's central bank unexpectedly increased interest rates to hit US stocks. The Bank of America faces a huge amount of bad mortgage repurchase news, which makes investors worried about the American banking subprime mortgage crisis. On Tuesday, the three major indexes of the United States went down low, and the Dow fell below 11000 points, eventually dropping 165.07 points, or 1.48%.

Disk, technology and energy sector led the decline.

In terms of stocks, Alcoa fell 3.58%, IBM fell 3.36%, Coca-Cola rose 0.57%, Intel -T rose 0.1%, Goldman Sachs rose 1.96%, Capital One rose 4.11%, Citibank fell 2.64%, New York Times fell 3.11%, Lockheed Martin fell 0.81%, Washington Post fell 0.9%, Halley Davidson dropped 6.75%, YAHOO fell, and Shanghua dropped.

China's unexpected increase in interest rates led to a sharp setback in the European stock market, dragging down the broader market. The pan European Dow Jones index closed down 265.24 points on Tuesday to 0.53%.

On Tuesday, the increase in interest rates led to a sharp rebound in the US dollar exchange rate, which depressed oil prices plunging 3.59 US dollars to 79.49 US dollars per barrel, or 4.3%, the largest single day decline since February.

Gold prices plunged 36.10 U.S. dollars on Tuesday to $1336 an ounce, or 2.6%, the biggest one-day decline since early July.

economic data

At 8:30 a.m. Eastern time, data released by the US Department of Commerce showed that in September, the new housing starts in the United States increased by 0.3%, reaching 610 thousand sets after the quarter adjustment, much higher than economists expected, the highest record since April this year.

However, the number of construction permits decreased by 5.6% to 539 thousand sets in September, the lowest record since April 2009.

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Company news

The US bank reported that the net loss of the company in the three quarter reached US $7 billion 300 million, much higher than that of US $1 billion in the same period last year. In addition, the net loss of common shareholders of US bank reached US $7 billion 600 million, up sharply from 2 billion 200 million US dollars in the same period last year.

Excluding the $10 billion 400 million worth of goodwill impairment, the profit in the three quarter was $3 billion 100 million.

Coca-Cola's three - quarter net profit increased from $1 billion 900 million to $2 billion 60 million, with sales growth of 5% to $8 billion 430 million, up from the market's expected $8 billion 390 million.

The company said it is expected to buy a $2 billion stake by the end of the year.

Johnson posted a net profit of $3 billion 420 million in the three quarter, up from $3 billion 350 million in the same period last year.

In addition, the company's operating income was $14 billion 980 million, slightly lower than the US $15 billion 80 million in the same period last year.

Goldman Sachs Group realized net profit of US $1 billion 900 million in the three quarter, much lower than US $3 billion 190 million in the same period last year, but still exceeded Wall Street analysts' expectations.

As a result of the growth of bond underwriting, Goldman Sachs's investment banking business grew 24% in the three quarter, but the revenue of bonds, foreign exchange and commodity trading decreased by 36%.

Data storage company EMC reported that its net profit in the third quarter was $472 million 500 thousand, driven by services, hardware and software business, up 58% from 298 million 200 thousand US dollars in the same period last year.

EMC also increases its annual profit forecast.

Occidental Petroleum Corp reported that net profit in the third quarter increased by 28% to $1 billion 190 million in the third quarter, thanks to the rise in oil and natural gas prices and output.

In a letter to AIG on Monday, SEC disclosed that it had previously traded with Feng Ze insurance company for $125 million when it sold its 80% stake in US general finance.

It is reported that 8 institutional bond holders, including the New York fed, are trying to force the US bank to buy back about $47 billion of bad mortgages sold by Countrywide financial company, which has led to a sharp fall in bank shares.

Bloomberg News quoted the anonymous sources familiar with the situation. The Pacific Investment Management Company, BlackRock and the Federal Reserve Bank of New York wrote to the Bank of America and New York Mellon that Countrywide did not sell these mortgage bonds properly.

Bank of America acquired Countrywide in 2008.

Data storage company EMC reported that its net profit in the third quarter increased by 58% over the past three months, driven by services, hardware and software.

EMC also increases its annual profit forecast.