NEW YORK (AP) — Stocks are slightly lower in afternoon 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 cooled in the summer as businesses cut production of goods and drew down their inventories, which offset strength in consumer spending. The Commerce Department said gross domestic product grew at a rate of 1.5 percent. Analysts had forecast 1.7 percent.
THE QUOTE: RBS senior economist Kevin Cummins said the report isn’t a major warning sign. In his view, consumers are spending more money because gas prices have tumbled, and the labor market is doing well even though fewer people are in the workforce 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 55 points, or 0.3 percent, to 17,724 as of 1:45 p.m. Eastern. The Standard & Poor’s 500 index fell four points to 2,086. The Nasdaq composite sank 23 points, or 0.5 percent, to 5,072.
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 1.5 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 $2.33, or 7.7 percent, to $27.98.
MISSED: Several companies dropped after reporting weak earnings. Buffalo Wild Wings skidded $33.59, or 18.2 percent, to $150.81 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 $11.25, or 9.3 percent, to $110.09.
NO-GO: GoPro slumped $4.44, or 14.7 percent, to $25.77 after the wearable camera maker 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 $3.28, or 11.9 percent, to $30.88.
BIG PHARMA TALKS: Allergan, which makes Botox, jumped 7.5 percent after saying it has held talks with Pfizer about a sale. Pfizer makes the pain and fibromyalgia treatment Lyrica, erectile dysfunction drug Viagra, and Prevnar 13, a vaccine against pneumonia and ear and other infections. It’s the second-largest drug company in the world, and in 2014 it tried to buy competitor AstraZeneca for $119 billion.
Allergan completed a $66 billion acquisition this year. It jumped $21.60 to $308.80, which put its market value at about $121 billion.
ENERGY: U.S. crude added five cents to $45.99 a barrel in New York. Brent crude, which is used to price international oils, lost 19 cents to $48.86 a barrel in London.
CURRENCIES: The dollar slipped to 121.17 yen from 121.23 yen. The euro rose to $1.0963 from $1.0909.
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