FOX Business: Capitalism Lives Here
Wall Street saw sharp losses Tuesday, with the Dow posting its worst daily decline since July 31, as worries over international growth were reignited.
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The Dow Jones Industrial Average shed 272 points, or 1.6%, to 16719, the S&P 500 dropped 29.7 points, or 1.5%, to 1935, and the Nasdaq Composite fell 69.6 points, or 1.6%, to 4385.
Traders have grown more concerned over lagging economic growth across the globe. In Germany, Europe’s largest economy, August industrial output slipped 4% to mark the steepest drop in more than five years. On Monday, another report showed the biggest monthly drop in industrial orders since 2009.
Meanwhile, the International Monetary Fund slashed its outlook for global growth amid weakness in emerging markets and the eurozone. The IMF projected growth of 3.8% in 2015, down from its last estimate of 4%.
Tuesday’s losses also come ahead of the unofficial start of earnings season. Yum Brands (NYSE:YUM) is out with its third-quarter results after the closing bell Tuesday, while aluminum maker Alcoa (NYSE:AA) is scheduled to report earnings after the close of trade Wednesday. Also on the docket for Wednesday is agricultural giant Monsanto (NYSE:MON).
On the corporate front, Herbalife (NYSE:HLF) fell 3.4% to $45.68 after FOX Business’s Charlie Gasparino reported the nutrition company expects disciplinary action from the Federal Trade Commission.
General Motors (NYSE:GM) tumbled 5.9% to $31.77 as Morgan Stanley cut its price target to $27 a share from $29.
In commodities, West Texas Intermediate crude oil slid $1.47, or 1.6%, to $88.87 a barrel. Wholesale New York Harbor gasoline was down four cents, or 1.8%, at $2.37 a gallon.