Wall Street dropped on worries about global economic risks and the outlook for earnings. Fred Katayama reports.
Stocks moved lower on continued concerns about global economic risks following Wednesday's release of the Fed minutes. Also a growing worry: the earnings outlook. Thomson Reuters estimates first-quarter earnings will decline 7.4 percent. All this will continue to weigh on stocks says Peter Kenny, senior market strategist at Global Markets Advisory Group: (SOUNDBITE) PETER KENNY, SENIOR MARKET STRATEGIST, GLOBAL MARKETS ADVISORY GROUP, (ENGLISH) SAYING: "In this market, I think, you have to remain very very cautious because, I think, the path of least resistance at least now that we have had this very massive rebound in Q1, I think, the path of least resistance now is lower. I'm not calling for a dramatic pullback but a reset." Jobless claims fell more than expected last week, a sign the labor market continues to gain strength. Verizon plans to bid for Yahoo's web business next week. Bloomberg also reports Google is considering making an offer. JPMorgan Chase is urging investors to vote against a proposal to explore a break up of the bank. The shareholder resolution would recommend that one company perform basic business and consumer banking, while the other focuses on investment banking. JPMorgan says a previous review showed a break up would hurt shareholder value. Valeant Pharmaceuticals stock jumped after the Canadian company got the OK on an extension to file its annual report. European stocks were in the red, pulled lower by weakness in financial stocks.