On Tuesday global markets fell after the International Monetary Fund lowered its global outlook. The IMF projected that Spain’s economy would shrink 1.3% next year, while the country plans to prove this report wrong and has yet to respond to the offer of ECB intervention. Drops in US stocks were led by the tech industry, including Intel (INTC) which experienced negative reports from brokerages. Despite showing a third-quarter loss and dropping their demand forecast by 1%, Alcoa (AA) topped investor expectations. Yum Brands (YUM) saw a higher Q3 profit and increased their EPS target growth rate to 13%. Oil futures climbed after China took additional policy action to improve their slowing economy while gold prices dropped due to growing global concerns.
Word on the Street
- Spain stands ready to prove the IMF and its 2013 economic forecast wrong.
- Alcoa Inc. (AA) will be paying $85 million to Alba in order to settle their recent fraud lawsuit.
- Spectrum Brands Holdings Inc. (SPB) to acquire Stanley Black & Decker Inc. (SWK) for $1.4 billion in cash.
- Intel (INTC) leads the tech retreat, shares fall to a new fifty-two week low.
- Oil futures rallied on Tuesday after action from China while concerns over supplies emerge.
- Yum Brands (YUM) ups their outlook and sees stock jump in after-hours trading.
- Protests and Boycotts Cause Toyota’s (TM) China Sales to Plunge 40%.
- One big topic the candidates have failed to discuss–small-business issues critical to economic growth.
- While many are struggling to find jobs, there is one industry where it seems employers can’t hire fast enough.