On Monday both world and US stocks were down on worries concerning China’s economic outlook and the continuing euro zone crisis. Oil prices and the euro dropped as well after the World Bank warned investors to be cautious with Asian markets and cut China’s growth expectations. The forecasted earnings will mark the first decline in three years for China. Stocks were also falling ahead of third-quarter expectations for a soft season. The tech industry was down on Monday as Apple (AAPL) and Facebook (FB) shares both dropped more than 2%. Netflix (NFLX) jumped after Morgan Stanley (MS) upgraded the company’s stock to equal weight. Focus will be on big names such as Yum Brands (YUM) and Alcoa (AA) on Tuesday as many companies begin to report earnings from the past quarter.
Word on the Street
- Stocks and oil prices drop amid fears on economic growth in China after the country’s forecast is cut.
- Wal-Mart (WMT) and American Express (AXP) team up to offer a new prepaid card.
- Chinese telecommunications giant Huawei Technologies Inc. flagged as a threat to the US.
- Wild swings in Netflix (NFLX) stock continue after the company is upgraded by analysts.
- Principal Financial Group (PFG) agrees to buy AFP Cuprum SA for $1.51 billion.
- BP (BP) announces the sale of its refinery in Texas City to Marathon Petroleum for $2.5 billion.
- The US dollar rises against the euro as economic worries continue and leaders launch the 500 billion euro ESM.