US stocks fall after gloomy IMF growth outlook
NEW YORK, United States - US stocks opened lower Tuesday after the IMF cut global economic growth forecasts and investors braced for the start of a poor third-quarter earnings season.
The International Monetary Fund's gloomier outlook for 2012 and 2013 global growth came a day after the World Bank slashed its growth estimates for developing countries in East Asia and the Pacific.
"Markets are searching for direction as investors exercise caution following a discouraging global growth forecast from the IMF," Wells Fargo Advisors analysts said.
In the first five minutes of trade, the Dow Jones Industrial Average was down 17.84 points, or 0.13 percent, at 13,565.81.
The S&P 500 slipped 1.89 (0.13 percent) to 1,453.99 and the tech-rich Nasdaq fell 10.34 (0.33 percent) to 3,102.00.
Investors expect a weak third-quarter earnings season that unofficially kicks off with Dow member Alcoa after the closing bell.
"So far, there have been a lot more companies that have pre-announced/guided lower-than-expected numbers, versus those with upside surprises," said Bryan Sapp, an equities analyst at Schaeffer's Investment Research. -Agence France-Presse