US STOCKS-German data, IMF growth outlook weigh on Wall Street
By Rodrigo Campos
NEW YORK Oct 7 (Reuters) - U.S. stocks were falling on Tuesday as weak data out of Germany added to concerns about possible headwinds to corporate outlooks ahead of the start of earnings season.
Adding to concerns, the International Monetary Fund cut its global economic growth forecasts for the third time this year, warning of weaker growth in core euro zone countries, Japan and big emerging markets like Brazil.
German industrial output in August slid 4 percent, the biggest fall in 5-1/2 years, the report coming a day after a report showed industrial orders had their biggest monthly drop since 2009.
"The German data is the catalyst of the day but this started long before that," said Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis.
"You are left facing this bad situation for investors of a weak global backdrop but the U.S. economy forcing the Fed to raise rates."
The president of the Federal Reserve Bank of New York, William Dudley, said on Monday he would be "delighted" to raise interest rates some time next year since it would be a sign of economic success, but for now a "very accommodative monetary policy" is still needed.
The Dow Jones industrial average was falling 137.28 points, or 0.81 percent, to 16,854.63, the S&P 500 was losing 13.34 points, or 0.68 percent, to 1,951.48 and the Nasdaq Composite was dropping 36.33 points, or 0.82 percent, to 4,418.47.
Declining issues were outnumbering advancing ones on the NYSE by 1,971 to 1,009, for a 1.95-to-1 ratio on the downside; on the Nasdaq, 1,943 issues were falling and 722 advancing for a 2.69-to-1 ratio favoring decliners.
The benchmark S&P 500 index was posting 8 new 52-week highs and 8 new lows; the Nasdaq Composite was recording 12 new highs and 154 new lows. (Reporting by Rodrigo Campos; Editing by Nick Zieminski)
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