Weak forecast on Asian economy sends stocks lower

AP News
Posted: Oct 08, 2012 11:51 AM
Weak forecast on Asian economy sends stocks lower

Stocks are lower on Wall Street as investors dreaded the start of U.S. corporate earnings reports and as the World Bank said Asia's economies won't grow as much as expected this year.

U.S. companies are expected to report lower profits when the earnings season starts Tuesday. FactSet says companies in the Standard & Poor's 500 index are expected to post an overall decline for the first time in almost three years.

The Dow Jones industrial average fell 42 points to 13,568 at midday Monday. The Standard & Poor's 500 fell seven to 1,454 and the Nasdaq gave up 27 to 3,108.

The World Bank warned that a more pronounced slowdown is possible in China, the world's second-largest economy. It also cut its overall growth forecast for developing countries in Asia.