Analysts attributed the weaker second quarter to a disappointing trade performance in June.

"I don't think it's a long-term earnings problem, but we have a few weak quarters ahead of us," he said.

"We're going to have a weak third quarter, but we'll be coming through that with decent growth for the fourth quarter and into 2007."

It stood at 36 1/2 a week ago but has been under pressure after forecasts of a weak fourth quarter.

Lehman noted that even though it had a weak quarter the firm posted record results for the year as a whole.

With the continuing bad reports, many large banks are expected to have weak first quarters.

Agriculture declined by 1.3% while construction grew 0.5%, recovering after two weak quarters.

The recession produced a weak quarter for the refining and chemical business.

The earnings appeared so strong, analysts said, in comparison with a very weak quarter.

Still, analysts said the reaction might have been worse had management not warned of a weak quarter two weeks ago.