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The US equity markets closed sharply lower across the board on Wednesday, following a batch of weaker-than-expected earnings and as commodities resumed their sell-off amid ongoing worries over global growth. The CBOE volatility index shot up 18.3 percent to 16.51.
Bank of America's first quarter revenue increased to USD 23.7 billion, beating street estimates of USD 23.41 billion. The bank said increases in investment banking fees and trading income helped to drive revenue gains, but results were hurt by lower mortgage banking income.
Yahoo's first quarter revenue remained flat at USD 1.07 billion, missing street forecasts of USD 1.10 billion. The revenue disappointment was mostly on the count of a dip in display advertising revenue, which declined 11 percent from a year earlier.
In other stock specific news, the Apple stock tumbled yesterday after Digitimes reported that iPad mini shipments will fall 20 to 30 percent quarter-over-quarter to 10 to 12 million units in the second quarter.
Intel traded lower after they missed earnings estimates. The company expects current-quarter revenue decline of 8 percent.
According to Fed's Beige Book, US economy grew moderately in late February-early April.
European markets slid with over 2 percent cuts on worries about slowing growth and rumors of a credit downgrade for Germany curbing investor sentiment.
In key data to watch out for in the US today: Weekly jobless claims are expected to come in largely unchanged at 347,000. Also watch out for data from Philadelphia Fed survey.
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