Stocks Down as Economic Growth Lags

Stocks Down as Economic Growth Lags

NEW YORK (AP) -- Stocks are slightly lower in midday trading after the U.S. government said economic growth slowed more than expected in the summer. Companies including Buffalo Wild Wings and camera maker GoPro plunged after reporting weak earnings.

SLOWDOWN: The U.S. economy slowed sharply in the summer as businesses cut production of goods and drew down their inventories, which offset strength in consumer spending. The growth was a bit slower than analysts expected. In its initial estimate the Commerce Department said the economy, as measured by gross domestic product, grew at a rate of 1.5 percent. Analysts had forecast growth of 1.7 percent.

THE QUOTE: RBS senior economist Kevin Cummins said the report isn't a major warning sign. In his view, the labor market is doing well even though fewer people are in the work force than in years past. While jobs reports for August and September showed reduced growth, Cummins expects to see better results in October.

"The domestic economy is in pretty healthy shape right now," Cummins said.

THE SCORE: The Dow Jones industrial average fell 62 points, or 0.4 percent, to 17,717 as of 12:10 p.m. Eastern. The Standard & Poor's 500 index fell five points, or 0.2 percent, to 2,085. The Nasdaq composite sank 20 points, or 0.4 percent, to 5,075.

BONDS: U.S. government bond prices fell. The yield on the 10-year Treasury note rose to 2.16 percent from 2.10 percent late Wednesday. Higher bond yields pulled buyers away from income-producing investments. Utility stocks in the S&P 500 index slid 1.3 percent, far more than the rest of the market. Real estate investment trust shares edged lower.

BIG CUTS: Deutsche Bank said it lost about $6.6 billion in the third quarter. The company says it will eliminate 35,000 jobs in an effort to improve profitability, mostly by selling businesses. It also won't pay a dividend this year or next. The stock sank $2.35, or 7.8 percent, to $27.96.

MISSED: Several companies dropped after reporting weak earnings. Buffalo Wild Wings skidded $32.30, or 17.5 percent, to $152.10 after the restaurant chain's profit and sales fell short of expectations. Computer networking company F5 Networks dropped after it reported disappointing fourth-quarter revenue and first-quarter projections. The stock lost $9.86, or 8.1 percent, to $111.48.

NO-GO: Wearable camera maker GoPro slumped $4.03, or 13.3 percent, to $26.18 after it reported disappointing results for its most recent quarter. GoPro shares, which began trading in 2014, have lost more than half their value since mid-August and reached an all-time low of $24.95.

SOFTWEAR SALES: Hanesbrands rose after the maker of underwear, socks and t-shirts announced strong third-quarter results and raised its profit estimate for the year. The stock gained $3.36, or 12.2 percent, to $30.96.

BIG PHARMA TALKS: Allergan, which makes Botox, jumped 7.6 percent after saying it has held talks with Pfizer about a sale. Both companies have long history of deal-making, and Allergan completed a $66 billion acquisition this year. Allergan jumped $21.85 to $309.05, which put its market capitalization at about $122 billion.

ENERGY: U.S. crude added 20 cents to $46.14 a barrel in New York. Brent crude, which is used to price international oils, rose five cents to $49.10. a barrel in London.

CURRENCIES: The dollar slipped to 121.12 yen from 121.23 yen. The euro rose to $1.0973 from $1.0909.

(BAS)