(Refiles to update 4th bullet item above the byline to show
percentage drop in Dow is 1.3 pct and S&P 500 off 1.4 pct)
* Investors fret about deepening global slump
* Commodity, energy, tech shares among top drags
* Alcoa slashes capacity as global demand wanes
* Dow down 1.3 pct, S&P 500 off 1.4 pct, Nasdaq off 1.3 pct
* For up-to-the-minute market news, please click on
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(Updates to late afternoon)
By Kristina Cooke
NEW YORK, Nov 11 (Reuters) - U.S. stocks slid on Tuesday
as production cuts at aluminum maker Alcoa, a dismal outlook
from Tyco International and weak results at Starbucks
underscored fears the economic slowdown will deepen.
Signs that the Chinese economy is faltering heightened
concerns about the breadth of the global slump, quelling
investors' appetite for risky assets.
Selling was widespread, with commodity-related shares
tumbling as resources ranging from oil to silver were stung by
fears that economic gloom will curb demand and as the U.S.
dollar firmed.
Alcoa <AA.N> shares shed more than 5 percent to $11.15
after the company slashed a further 350,000 tonnes of
aluminum-making capacity worldwide, blaming faltering global
demand. For details, see [].
Industrial conglomerates slid after Tyco International Ltd
<TYC.N> warned fiscal-year profit would be well below Wall
Street's forecasts due to the downturn and the stronger
dollar.
Adding to the sour mood, Starbucks Corp <SBUX.O> provided
more evidence that consumers are cutting back in a harsh
economic environment. The coffee chain operator's stock fell
1.3 percent to $10.07 on Nasdaq after its profit and outlook
disappointed investors and it cut plans for to open new shops.
[].
"Reality is setting in that we are in a recession. It's
almost like an endless abyss for the market -- it's sell
first, ask questions later," said Ryan Detrick, technical
analyst at Schaeffer's Investment Research in Cincinnati,
Ohio.
"All the different bailout plans have only given stocks
fleeting boosts and that is beginning to wear on people. And
for the consumer, Christmas is not going to be a 'feel good'
time of year at all."
The Dow Jones industrial average <> fell 114.93
points, or 1.30 percent, to 8,755.61, well off its session low
at 8,560.71. The Standard & Poor's 500 Index <.SPX> dropped
12.43 points, or 1.35 percent, to 906.78, well above its
session low at 884.90. The Nasdaq Composite Index <> was
down 21.07 points, or 1.30 percent, at 1,595.67, above its
intraday low at 1,563.95.
Stocks came off their session lows after BlackRock
President Robert Kapito told the Reuters Global Finance Summit
that a $30 billion Bear Stearns mortgage portfolio could end
up being worth more than its market value implies.
PANDORA'S BOX
Shares of credit card company American Express Co <AXP.N>
fell 6.1 percent to $22.51 on the New York Stock Exchange, a
day after it said it won approval to become a bank holding
company, in a move that would give it more access to
government money.
General Motors <GM.N> slid for a fifth straight day, down
10.7 percent to $3.00 as investors worried about the chances
of the U.S. auto sector securing a desperately needed cash
infusion from the government.
"It's opening up Pandora's Box. American Express, they're
asking for money, GM is asking for money. People are starting
to realize this bailout is going to be much more expensive
than originally thought," Detrick said. "Everybody's asking
for a handout, but who is going to foot the bill?"
The market's slide puts it in a precarious position as
investors had hoped November would mark the start of a
sustained recovery after a disastrous October sent stocks to
their lowest in more than five years.
Technology stocks also got hurt, including Google
<GOOG.O>, which fell 2.4 percent to $310.45 after Goldman
Sachs cut its price target and fourth-quarter revenue view for
the Internet company.
Among industrial companies, Tyco's shares fell 10.9
percent to $22.58, while 3M's <MMM.N> shares were among the
biggest drags on the Dow, falling 3.3 percent to $62.80.
In the latest sign of fallout from the economic upheaval,
Chinese import growth slowed in October and inflation fell to
a 17-month low as demand cooled. [].
Trading volumes were thin, with the bond market closed for
the Veterans Day holiday.
(Editing by Jan Paschal)
