Stocks Open Lower on Weak Corporate Outlook

Stocks fell across the board as companies offered a weak outlook through the rest of the year. Meanwhile, investors cashed in on recent gains. The Dow lost more than 120 points to 7803 while Nasdaq tumbled 30 points to 1556.

On the upside

KB Home (NYSE: KBH) posted a smaller than expected loss as orders for new, smaller homes rose.

General Motors (NYSE: GM) may get a 30-day extension past its March 31 deadline to submit a restructuring plan to the federal government, according to a Wall Street Journal report. Meanwhile, its Germany-based Opel unit posted a 60% surge in 1st quarter sales due to a government incentive program to scrap cars that are at least 9 years old.

Investors were relieved to learn that the U.K.'s Barclays (NYSE: BCS) passed a financial stress test.

On the downside

Accenture (NYSE: ACN) posted a small increase in quarterly profits, but the consulting firm lowered its outlook for the year. Analysts promptly downgraded the stock.

Johnson Controls (NYSE: JCI) announced plans to close 10 plants in order to save more than $200 million by 2010.

Shares of UBS AG (NYSE: UBS) continued to falter as the U.S. government threatened to step up efforts to retrieve tax evaders holding secret Swiss accounts.

In the broad market, declining issues outpaced advancers by a margin of more than 4 to 1 on the NYSE and by more than 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks lost 8 points to 823.