Stocks fall in early trading as Morgan Stanley results fall short of expectations

Lackluster earnings reports send Wall Street lower

NEW YORK — Investors unnerved by mixed news from corporate earnings reports sent stocks lower in early trading Wednesday.

Morgan Stanley reported a wider-than-expected loss for the first quarter and reduced its dividend. The results overshadowed more upbeat reports from AT&T Inc., Boeing Co. and McDonald’s Corp.

The report from Morgan Stanley dragged on stocks. Banks have largely dictated the stock market’s direction since the fall of Lehman Brothers Holdings Inc. in mid-September. Analysts contend that a stabilization among the nation’s largest lenders is necessary for the economy to recover.

The market tumbled Monday and recovered about half its losses Tuesday after Treasury Secretary Timothy Geithner reassured investors about the health of banks’ balance sheets. But mixed corporate reports have otherwise driven trading.

In the first hour of trading, the Dow Jones industrial average fell 58.62, or 0.7 percent, to 7,910.94.

Broader stock indicators also fell. The Standard & Poor’s 500 index fell 7.35, or 0.9 percent, to 842.73, and the Nasdaq composite index fell 7.17, or 0.4 percent, to 1,636.68.