Oct. 22 -- U.S. stocks fell for a third day, extending the worst decline since August, after the prospect of weakening economic growth pushed down mining and energy shares.
The drop followed losses in Asia and Europe after finance ministers from the Group of Seven nations said the world economy is slowing. Exxon Mobil Corp. and Chevron Corp., the largest U.S. oil producers, retreated after crude tumbled for a second day. Newmont Mining Corp., the world's second-biggest gold miner, slumped after gold slid from a 27-year high.
``Sentiment is unsettled,'' said Robert Weissenstein, New York-based chief investment officer for private banking in the Americas at Credit Suisse, which oversees $1.33 trillion. ``The U.S. is certainly the center of the problems we're taking a look at today.''
The Standard & Poor's 500 Index lost 8.5, or 0.6 percent, to 1,492.13 at 11:18 a.m. in New York. The Dow Jones Industrial Average tumbled 92.02, or 0.7 percent, to 13,430. The Nasdaq Composite Index decreased 0.68, or 0.02 percent, to 2,724.48.
The S&P 500 has declined 4.6 percent since reaching a record on Oct. 9, as companies from Bank of America Corp. to Alcoa Inc. and Caterpillar Inc. reported earnings that trailed analysts' forecasts.
S&P 500 companies will post an average profit decline of 0.6 percent in the third quarter, the first drop since 2002, according to analysts' estimates compiled by Bloomberg. Twenty- seven percent of the 132 companies in the index that have reported results so far have trailed analysts' estimates, compared with 21 percent in the second quarter.
Europe, Asia
Today's slide in the U.S. followed the S&P 500's worst weekly drop since July and declines by stocks in Europe and Asia. The Group of Seven finance ministers and central bankers said in a statement that ``recent financial market turbulence, high oil prices and weakness in the U.S. housing sector will likely moderate'' the global expansion.
The Dow Jones Stoxx 600 Index lost 1.1 percent to 376.57, the biggest decrease since Sept. 17. The Morgan Stanley Capital International Asia-Pacific Index posted its steepest drop in two months, losing 2.2 percent to 162.2. The MSCI Emerging Markets Index declined 2.3 percent, its biggest retreat since Aug. 16.
The yen rose to a six-week high against the dollar. The risk of owning European corporate bonds increased, according to traders of credit-default swaps.
``It's an echo of what we've seen in summer,'' said Christian Gattiker, head of equity markets at Bank Julius Baer & Co. in Zurich. ``The slowing growth theme will keep the markets busy longer than expected.''
Energy, Metals Stocks
Exxon lost $2.04 to $90.10. Chevron slipped $1.81 to $87.46. Oil fell for a second day on speculation that credit-market losses may stunt economic expansion, curbing energy demand, and as the risk of a Turkish offensive in Iraq receded. Crude dropped 2.2 percent to $86.65 a barrel in New York.
Newmont slumped 83 cents to $44.83 after copper fell to an almost five-week low and gold retreated from a 27-year high. Alcoa Inc., the world's second-largest aluminum company, declined 65 cents to $36.79.
American Express lost $1.32 to $55.79. Analysts surveyed by Bloomberg expect the company to report profit excluding some items of 85 cents a share after the close of U.S. markets. Lehman cut its rating on American Express to ``equal weight'' from ``overweight,'' saying ``it is just a matter of time'' before losses spill over to credit cards, auto loans and other forms of credit.
DuPont Co., the third-largest U.S. chemical maker, retreated 77 cents to $46.10 after Citigroup cut the shares to ``hold'' from ``buy.''
MGM Mirage
MGM Mirage decreased 69 cents to $91.26. Dubai World stopped buying shares in the world's second-largest casino company because they were overpriced, its chairman said. The state-owned investment group agreed Aug. 22 to purchase as many as 28.4 million shares in billionaire Kirk Kerkorian's MGM and 50 percent of the Las Vegas-based company's CityCenter hotel-and-casino project. The group sought to buy half the shares in a public tender at $84 each. By the end of August, MGM's had exceeded Dubai World's offer price.
Schering-Plough Corp. fell $4.37 to $28.34. The drugmaker reported profit, excluding items related to the $14.4 billion acquisition of Akzo Nobel NV's Organon unit, that trailed the average estimate of analysts surveyed by Bloomberg.
Bear Stearns
Bear Stearns Cos. gained after the fifth-biggest U.S. securities firm and China's Citic Securities Co. agreed to invest $1 billion in each other in an alliance to pool their businesses in Asia. Citic will buy the equivalent of 6 percent of New York- based Bear Stearns' shares as the banks collaborate to develop financial products and services in China, the companies said.
They will also form a Hong Kong-based joint venture to bring together their operations outside of China. Bear Stearns advanced 29 cents to $116.70.
A gauge of financial companies rose for the first time in nine days and from its steepest decline in more than a month, gaining 0.2 percent. Lehman Brothers Holdings Inc., the fourth- biggest securities firm, added 17 cents to $57.39. Merrill Lynch & Co., the third largest, climbed 59 cents to $66.85.
Halliburton Co. added 39 cents to $39.24. The world's second-largest oilfield-services provider said third-quarter net income rose 19 percent as clients increased spending on wells in the Middle East and Asia. Excluding an increase in environmental reserves and a tax gain, third-quarter profit was about 66 cents a share, 1 cent higher than the average of 21 analyst estimates compiled by Bloomberg.
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