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Overnight Markets: US stocks down after World Bank cuts forecast

by Himanshu Singh on Jun 12, 2014 at 04:35

Overnight Markets: US stocks down after World Bank cuts forecast

Wall Street declined on Wednesday, with the Dow Jones snapping a four-day string of record closing highs, after the World Bank's reduction of its global growth forecast.

The Dow Jones industrial average fell 102 points or 0.60%, to 16,844. The S&P 500 slid seven points or 0.35%, to 1,944. The Nasdaq Composite dropped six points or 0.14%, to 4,332.

The World Bank's lower growth forecast provided investors with a reason to unload some stocks. Late Tuesday, the World Bank cut its global economic growth forecast for 2014 to 2.8% from 3.2% because of a harsh US winter and the impact of the Ukraine crisis.

The biggest drag on the S&P 500 was Bank of America Corp (BAC.N), down 2.1%. The bank has reached an impasse in negotiating a multibillion-dollar settlement with the US Department of Justice related to the bank's mortgage investments.

Boeing slid 2.3% for the biggest drop in the Dow after US House Majority Leader Eric Cantor’s defeat in a primary election threatened congressional reauthorisation of low-cost lending that benefits the company..

Micron Technology Inc (MU.O) rose 5% a day after Credit Suisse raised its price target on the memory chipmaker's stock to $50 from $30.

Orexigen Therapeutics Inc (OREX.O) shares sank 14.7% after the US Food and Drug Administration delayed a decision on the marketing application for its obesity drug by three months.

J Sainsbury Plc (SBRY) rose 1% after saying sales growth will resume this year. Anadarko Petroleum Corp. rose to a record amid speculation of a takeover. H&R Block Inc. added 4.6% after reporting sales that topped analysts’ forecasts.

Hilton Worldwide Holdings Inc. slid 2.7% after registering to sell 90 million shares held by Blackstone Group LP.

In Asia, shares fell on Thursday in morning trade as investors weighed valuations after US equities declined.

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