Stocks slide early

Big News Network (UPI) Tuesday 9th October, 2012

NEW YORK -- U.S. markets slumped early Tuesday after the International Monetary Fund warned a second global recession was a distinct possibility.

In its quarterly "World Economic Outlook" report, the IMF notched its forecast of the global economy's 2012 gross domestic product to show 3.3 percent growth, down 0.2 percentage points from a prediction made in July.

For 2013, the IMF forecast growth of 3.6 percent, down from a previous prediction of 3.9 percent.

In midmorning trading the Dow Jones industrial average dropped 96.33 points, 0.71 percent, to 13,487.32. The Nasdaq composite index lost 45.51 points, or 1.46 percent, to 3,066.84. The Standard and Poor's 500 index gave up 12.14 points, or 0.83 percent, to 1,443.74.

The benchmark 10-year treasury note rose 15/32 to yield 1.701 percent.

The euro fell to $1.2887 from Monday's $1.2969. Against the yen, the dollar fell to 78.20 yen from 78.34 yen.

In Japan, the Nikkei 225 index shed 0.38 percent, 93.71 points, to 8,769.59.