* Intel's lowered revenue view casts pall over tech stocks
* U.S. jobless data also underscores weak economic outlook
* Oil falls, recovers slightly from 22-month low below $55
* Dollar, yen trend lower after recent strong gains
(Recasts with U.S. markets, adds byline; changes dateline;
previous LONDON)
By Herbert Lash
NEW YORK, Nov 13 (Reuters) - Global stocks slid anew on
Thursday, with the benchmark S&P hitting a more than five-year
low, as Germany fell into recession and fears heightened that
the slumping economy is stifling technology spending, while oil
fell below $56 a barrel.
A sharp slide on Wall Street in early afternoon trade
boosted the bid for safe-haven U.S. government debt.
European stocks declined for a fifth day in seven sessions,
posting their lowest close in two weeks, while the benchmark
S&P 500 broke through the year's intraday low set on Oct. 10.
The Dow tumbled below 8,000, but remained above 2008 lows, also
set on Oct. 10.
The economy and consumer spending remained at the forefront
of investors' worries, driven home by a lowered revenue outlook
from Intel Corp's <INTC.O> , the world's largest maker of
computer chips. []
"There's concern about the overall economy and business is
slowing down," said Tom Alexander, head of Alexander Trading,
in Savannah, Georgia.
The Organization for Economic Cooperation and Development
cut its economic output forecasts for the United States, Japan
and the euro zone, saying it sees all three falling into
recession.
After 1 p.m., the Dow Jones industrial average <> was
down 258.78 points, or 3.12 percent, at 8,023.88, after falling
as low as 7,965.43. The Standard & Poor's 500 Index <.SPX> was
down 25.19 points, or 2.96 percent, at 827.11. The Nasdaq
Composite Index <> was down 56.20 points, or 3.75 percent,
at 1,443.01.
Shares of tech bellwethers such as computer and printer
maker Hewlett-Packard <HPQ.N>, IBM <IBM.N> and BlackBerry maker
Research In Motion <RIM.TO><RIMM.O> tumbled in sync with Intel
<INTC.O>, down 3.2 percent at $13.08 on Nasdaq. The
semiconductor index <.SOXX> fell 3.2 percent.
American Express <AXP.N> plunged 14.2 percent to $17.21,
its lowest since January 1997. On Monday, American Express won
the Federal Reserve's approval to become a bank holding
company, which could give it more access to government money.
An S&P index of financial stocks <.GSPF> lost 4.9 percent.
The FTSEurofirst 300 <> index of top European shares
closed a roller-coaster session 0.4 percent lower at 850.22
points. []
Shares in British lenders were among the hardest hit, amid
mounting worries that the UK economy faces tough times ahead.
Barclays <BARC.L> lost 6.3 percent and Royal Bank of Scotland
<RBS.L>.
"In the short term the news flow will remain negative, with
more jobs destruction, falling consumer spending, etc. etc.,"
said Yann Lepape, an economist at Oddo Securities in Paris.
"And the gloom is on both the macro and the micro fronts, with
profit warnings on the rise."
But not all companies are issuing warnings. GDF Suez
<GSZ.PA>, Europe largest utility by sales, gained 4.1 percent
after the company confirmed its target for profit growth.
Short-dated euro zone government bond yields fell to their
lowest level in over three years on news Germany has fallen
into recession, increasing expectations for further interest
rate cuts from the European Central Bank. []
The recession in Germany, Europe's biggest economy and the
world's top exporter of goods, bodes ill for euro-zone figures
on gross domestic product due on Friday.
"The ECB is hinting strongly that rates are going to come
down again next month. The news still remains unambiguously
negative," said Investec economist David Page.
In the United States, the government reported the number of
U.S. workers drawing jobless benefits hit a 25-year high this
month and U.S. imports suffered a record drop in September,
underscoring a rapid drop-off in the U.S. economy.
[]
Oil dropped to less than $55 a barrel to trade near
break-even after the latest evidence of a deep drop in demand,
which offset news that the Organization of Petroleum Exporting
Countries might take emergency action to curb supplies.
[]
Selling gathered momentum after U.S. inventory data showed
another decline in U.S. gasoline demand and a rise in stocks of
refined products.
"The only thing supporting the market is the possibility of
OPEC cuts at the end of the month, but the production cuts
would probably only be in step with falls in demand," said
Christopher Bellew of Bache Financial.
U.S. light sweet crude oil <CLc1> fell 65 cents to $55.51 a
barrel.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
unchanged in price to yield 3.74 percent, while the 2-year U.S.
Treasury note <US2YT=RR> was little changed to yield at 1.16
percent.
The dollar rose against a basket of major currencies, with
the U.S. Dollar Index <.DXY> up 0.14 percent at 87.874. Against
the yen, the dollar <JPY=> rose 0.47 percent at 95.31.
The euro <EUR=> fell 0.01 percent at $1.2468.
Gold rose as bargain hunters entered the fray, but analysts
said gains will be capped by the stronger dollar and receding
inflation fears. []
"Safe-haven buying will continue to underpin the gold
price, but it looks as if people are more inclined to move into
U.S. Treasury bonds and bills," said Calyon analyst Robin
Bhar.
Japan's Nikkei average <> dropped 5.3 percent
overnight, and Asian shares fell to their lowest this month,
with the MSCI index of the region's stocks outside Japan
<.MIAPJ0000PUS> falling 5.4 percent.
(Reporting by Ellis Mnyandu, Wanfeng Zhou and Ellen Freilich
in New York and Kirsten Donovan, Barbara Lewis and Pratima
Desai in London and Blaise Robinson in Paris; Writing by
Herbert Lash; Editing by Leslie Adler)
