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Ibovespa Drops as Consumer Stocks Tumble Amid Earnings Concern

  • Country's largest retailer tumbles after first-quarter loss
  • Raw-material producers follow commodity prices higher
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Brazil Markets Watch and Wait for Rousseff Fallout

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The Ibovespa slumped, following the biggest gain in two months, on concern the rally fueled by bets on a government change may have outpaced the outlook for corporate earnings.

The benchmark equity gauge fell 0.6 percent to 52,764.46 at the close of trading in Sao Paulo as retailer Cia. Brasileira de Distribuicao SA tumbled 5 percent after posting its first loss since 2006. More than half of the 35 Ibovespa companies that have reported results for the quarter missed analyst estimates. A gauge for consumer stocks on the MSCI Brazil Index fell the most among 10 industry groups, with for-profit college operator Kroton Educacional SA dropping for the first time in four days.