Transportation sector lower in New York

A falling transportation sector led the New York equities markets lower by midday on Tuesday. The Dow Jones Industrial Average fell 0.3 percent to 11,018.64, while the Nasdaq Composite and the S&P 500 each had dropped by 0.2 percent, to 2,058.46 and 1,258.22 respectively.

United Parcel Service fell 14.5 percent to $68.44, its worst ever one-day performance. The decline came after its quarterly report did not meet expectations and it said that full-year earnings would only reach the low end of what has been forecast. The problems of Ups dragged the rest of the sector down as well. Federal Express dropped 2.7 percent to $107.50, while Burlington Northern Santa Fe declined by 4.5 percent to $66.67 and Expeditors International was 4.8 percent lower to $46.

The telecommunications sector, on the other hand, was up after AT&T said that its second quarter earnings were up by 81 percent. AT&T gained 4.4 percent to $28.99, while BellSouth added 4.8 percent to $37.95. BellSouth is scheduled to be purchased by AT&T later in the year.

In the technology sector, Sandisk added 14.8 percent to $37.95 after it reported that strong sales of memory cards for mobile phones sent profits up 36 percent in the quarter. Meanwhile, Texas Instruments reported that its earnings were up by 27 percent in the quarter, sending its shares 4.3 percent higher to $29.03.

BJ Services added 5.5 percent to $32.76 on third-quarter profits that were up by 86 percent.

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