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Stocks open lower after US cuts estimate of second quarter GDP growth to 2 percent
NEW YORK (AP) ' Stocks are opening lower after the government lowered its estimate of economic growth.
The Commerce Department said the economy grew at a 2 percent annual pace in the July-September quarter, down from its initial estimate of 2.5 percent. Economists expected the figure to remain unchanged.
Minutes after the opening bell, the Dow Jones industrial average is down 56 points, or 0.5 percent, to 11,491. The S&P 500 index is down 5, or 0.4 percent, to 1,188. The Nasdaq is down 7, or 0.3 percent, to 2,516.
The drop comes a day after the Dow plunged 249 points as a congressional committee failed to reach a deal to cut budget deficits. After the market closed Monday, the major rating agencies said the country's credit was unaffected by the news.