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Stocks tank on global growth concerns

Wednesday, October 08, 2014 - 02:02

A gloomy IMF forecast for global economic growth led investors to sell stocks for a second straight day. Bobbi Rebell reports.

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A broad sell off for the stock markets - the major indexes falling more than one percent each. The big catalys t- downward revisions from the IMF on global economic growth. That came soon after weak data on industrial production from Germany. Bill Adams, Senior International Economist, PNC Financial Services Group: SOUNDBITE: BILL ADAMS, SENIOR INTERNATIONAL ECONOMIST, PNC FINANCIAL SERVICES GROUP (ENGLISH) SAYING: "We knew that Brazil was in technical recession in the first half of 2014. We knew that Russia was going to be impacted by sanctions and the conflict in Ukraine and in the eurozone we've had data coming out for months now that showed the 2014 recovery, the 2014 pace of growth is not on track with what expectations had been at the beginning of this year. So I don't see a lot of surprises coming out of this report but I think that the impact of this slight change in the high level number may change sentiment a little bit." Also weaker - crude oil prices after new data showed a large build up in crude stocks. After the closing bell- Yum Brands earnings came in in-line with forecasts- though same store sales fell 14 percent on a food safety scare. The owner of KFC and Taco Bell cut its profit outlook for the year - to between 6 and 10 percent - citing weak sales in China. It had forecast growth of at least 20 percent. Twitter sued the U.S. Justice Department on Tuesday - saying the current surveillance policies violate the Constitution's first amendment guarantee of free speech. Morgan Stanley cut GM's price target - pointing to political trouble in Russia, and slowing sales in Latin America - on top of recall related costs. Separately, both GM and Fiat's Chrysler unit announced new recalls. A big warning from SodaStream took the fizz out of its stock. The Israeli at-home soda machine maker said third quarter revenue has been below market expectations. That's bad news - the company has been said to be be looking for a buyer. In Europe, that dour IMF forecast sent stocks south to a 1-1/2 month low.

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Stocks tank on global growth concerns

Wednesday, October 08, 2014 - 02:02