Stocks End Sharply Lower; Europe Slowdown Weighs

U.S. stocks ended sharply lower on Tuesday, as investors fretted slowing economic growth in Europe and the potential impact on coming third-quarter earnings from U.S. corporations. The Dow Jones Industrial Average dropped 272.52 points, or 1.60%, to 16,719.39. The S&P 500 was down 29.72 points, or 1.51%, at 1,935.10. The Nasdaq Composite fell 69.60 points, or 1.56%, to 4,385.20.

The International Monetary Fund downgraded its global growth forecast for this year and 2015, with the organization that represents 188 countries now projecting world growth to come in at 3.3 percent in 2014, down 0.1 percent from its July forecast. Next year, it expects growth of 3.8 percent.

Yum Brands Inc. (YUM), the parent of Kentucky Fried Chicken and Pizza Hut, said Tuesday that its third-quarter profit rose to $404 million, or 89 cents a share, from $152 million, or 33 cents, a year earlier. Total revenue fell 3% to $3.35 billion.

Kraft Foods Group (KRFT) said Tuesday it’s raising its quarterly dividend to 55 cents a share from 52.5 cents. The new dividend will be payable on Oct. 31 to shareholders of record as of Oct. 17.

Yahoo Inc. this week laid off 400 employees in Bangalore, India, a person familiar with the matter said, in what may have been the largest staff reduction under Chief Executive Marissa Mayer.

About the Author

has written 14548 stories on this site.

Copyright © 2012 Nine Stocks