Wall Street slips back on weaker economic reports

Dow Jones: 11,706.62 (–207.00) Nasdaq: 2,638.42 (–61.02) S&P 500: 1,229.05 (–25.14):US STOCKS fell yesterday, after United Parcel Service slumped and economic reports missed estimates as investors awaited today's European summit.

“It’s going to be a slow recovery,” Mark Bronzo, who helps manage $23 billion at Security Global Investors in Irvington, New York, said.

“The economic data show that we’re in a bottoming process. UPS gave some cautious commentary concerning global growth. In addition, we’re still slave to the events in Europe,” he added.

Benchmark gauges extended losses after consumer confidence unexpectedly slumped in October to the lowest level since March 2009 when the US economy was in a recession.

Separate data showed that home prices in 20 US cities fell more than forecast in August.

Stocks also fell as the cancellation of today’s meeting of European Union finance ministers spurred concern that summits of the region’s leaders will fail to produce agreements on how to tame the debt crisis.

UPS fell 2 per cent to $69.43. The company cut its airlift capacity for Asia as shipments to the US decreased, the Atlanta-based company said after announcing third-quarter earnings. International deliveries overall increased 4.6 per cent, trailing the 6.2 per cent gain in the previous three months.

3M fell back 6.3 per cent. Electronics sales are slowing after several quarters of what 3M called “very good growth”. The company, whose stock rallied 14 per cent this month before Monday, is seeing the effect of a slowdown in developed countries earlier than other manufacturers because some of its products, such as components for liquid crystal display TVs, are tied to consumer demand.

Netflix plunged 35 per cent to $77.27. The company faces rising content costs, a customer revolt over a price increase and start up costs as it expands into Latin America, followed by the UK and Ireland in early 2012.

AK Steel declined 13 per cent to $7.52. The third-largest US steel maker by volume reported a decline in shipments.

First Solar, the biggest maker of thin-film solar panels, sank 26 per cent to $43.16.

MF Global Holdings tumbled 48 per cent, the most since 2008. – (Bloomberg)