Merrill Lynch saw 10% wiped off its share price when it warned of a &quotsignificant&quot second quarter earnings slump.

Despite the attempt to take the sting out of the news, Merrill's share price dropped to a low of $58.5 Tuesday from $66 at the close on Monday. The firm's share price, which reached a high for this year of $80 in January, had been climbing off a low of $51 since March.