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The Dow Now: Shares Fall After IMF Cuts Global Growth Forecast


Intel and Disney were decliners today.

MINYANVILLE ORIGINAL US stocks slipped in mid-Tuesday trading after the International Monetary Fund reduced its global economic growth forecast for the year to 3.3%, down from the 3.5% it predicted in July.

"We're in the sobering up period, last month was so euphoric, the Fed gave us everything we wanted and more, all the problems in Europe were solved, and now it's the morning after and we realize there are still problems in Europe, and with the IMF report, maybe we're titling back towards recession, at least on a global basis," Bruce McCain, chief investment at Key Private Bank, told MarketWatch.

The Dow Jones Industrial Average (INDEXDJX:.DJI) was down 0.67% to 13,492. points as of 11:54 a.m. EDT.

Ahead of its third quarter earnings release after the close, Alcoa (NYSE:AA) was up 0.11% to $9.13. With earnings expectations low, many are looking for the aluminum producer to surprise with better-than-expected results.

25 of 30 Dow components slipped in intraday trading. The leading decliner was Intel (NASDAQ:INTC), which fell 2.67% to $21.91. Investors were concerned about whether Intel would be able to successfully move away from the PC business following the company's announcement that it would be laying off staff at its McAfee unit. Also, Sanford Bernstein cut the tech giant to an Underperform rating.

Johnson & Johnson (NYSE:JNJ) also declined 1.81% to $68.18 on the heels of a downgrade to Sell from Neutral by Goldman Sachs, which cites a lack of pipeline catalysts as one of the worries of the health care company. Goldman has a price target of $72 for Johnson & Johnson.

On a bearish day overall for media companies, Disney (NYSE:DIS) also dipped 1.53% to $51.53. Wall Street analysts expect media companies to report weak earnings this season because of weak ad sales in the quarter.

Twitter: @sterlingwong
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