This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

U.S. Stocks Fall as World Bank Cuts Global Outlook

NEW YORK (TheStreet) -- Stocks on Wall Street were falling Wednesday after the World Bank slashed its global economic outlook.

The World Bank said the global economy got off to a bumpy start this year as a result of poor weather in the U.S., financial market turbulence, and the conflict in the Ukraine. As such, it has cut its 2014 world growth projections to 2.8% from 3.2%.

The S&P 500 was down 0.28% to 1,945.38, and the Dow Jones Industrial Average was down 0.51% to 16,959.59. The Nasdaq was off by 0.03% to 4,336.49.

Offsetting economic catalysts weren't expected Wednesday given a light economic calendar. Incoming data includes the U.S. Treasury budget at 2 p.m. EDT.

European stocks fell on Wednesday amid a raft of earnings downgrades, and after the World Bank cuts its global growth forecast. Asian stocks were mixed.

Individual stocks to watch Wednesday include Bank of America (BAC), (AMZN), American International Group (AIG), Google (GOOG), Boeing (BA), Apple (AAPL - Get Report) and Starbucks (SBUX - Get Report).

Both Apple and Starbucks shares were weaker as European officials probe their tax activities in Ireland and the Netherlands. The European Commission said it's investigating whether decisions made by tax authorities regarding corporate income tax to be paid by Apple in Ireland, Starbucks in the Netherlands, as well as Fiat Finance and Trade in Luxembourg comply with the EU rules on state aid. Apple was little changed at $94.30 a share, while shares of Starbucks were effectively flat at $74.55.

Shares of Bank of America were down 1,5% as The New York Times reported that Bank of America and the Justice Department have reached an impasse in negotiations over a multibillion-dollar settlement deal. has refused to take pre-orders for upcoming Time Warner home video movie titles, including "The Lego Movie," the Times reported; shares were up over 1.5%.

Google agreed to buy Skybox Imaging for $500 million in cash, subject to adjustments, as the Web search and mobile software giant tries to bolster its imaging capabilities; shares were behind by 0.56%.

American International Group tapped long-time JPMorgan executive Peter Hancock as its new CEO, choosing a man with scant background in insurance but deep experience in the type of complex financial instruments that forced the giant insurer to take a $182 billion bailout.

Also, Emirates Airlines has canceled its order for 70 Airbus A350 aircraft. The A350 is intended as Airbus' best hope for catching up in the long-haul market that is dominated by Boeing's BA 777 and 787 but has been plagued by years of delays and a multibillion dollar revamp.

U.S. markets closed mixed Tuesday, with no impetus to make big moves. The S&P 500 recovered to close 0.02% lower.

-- By Andrea Tse in New York

European Stocks Fall After World Bank Cuts Global Growth Forecast

June 11 Premarket Briefing: 10 Things You Should Know

A Mixed Finish for Markets With No News to Tip Big Swings

Copyright 2014 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 0.21%
SBUX $56.42 0.00%
FB $116.73 0.00%
GOOG $691.02 0.00%
TSLA $247.54 -0.07%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs