Wall Street Gives an F on Profit Test
NEW YORK -- Wall Street faced its first big earnings test as General Electric posted first-quarter results. Judging by how the market acted in the trading session, GE failed the test dismally.</br></br>GE fell $3.45, or 9.3%, to 33.75, as 78 million shares changed hands, triple the volume of a typical session. Investors found themselves stung by the quality of the conglomerate's earnings report, which featured lighter revenue in the quarter than analysts anticipated. Investors also were disappointed the company didn't deliver a more robust outlook for the rest of the year than they heard on the conference call executives hosted.</br></br>In technology, Yahoo sank 2.99, or 16%, to 15.45 at 4 p.m. in Nasdaq Stock Market trading, after the Internet company posted first-quarter results that matched Wall Street's forecast and raised its revenue estimate for this year. But analysts faulted Yahoo for not outperforming expectations and reiterated lingering worries about Yahoo's exposure to the advertising market, which continues to struggle.</br></br>Meanwhile, Wall Street maintained its bearish posture on the outlook for a profit recovery in the telecommunications sector, driving share prices in one of the market's hardest-hit areas even lower. Verizon Communications, which this week projected weaker earnings than Wall Street has been expecting, fell 2.08, or 4.7%, to 41.82, a 52-week low. Sprint dropped 1.23, or 8.3%, to 13.62, and SBC Communications sank 1.90, or 5.3%, to 33.75, posting a 52-week low of its own.</br></br>Other concerns only served to compound the problems that Wall Street had with first-quarter results. A research company that tracks the activities of the Securities and Exchange Commission reported that the agency has launched an inquiry into International Business Machines. The shares slid 4.82, or 5.4%, to 84.19e, notching a 52-week low.