Dow Drops 200-Plus Points; Stocks Negative For July

[Purveyor]

U.S. stocks declined on Thursday, with benchmark indexes on track for their first monthly losses since January, as investors worried about Europe's economy and a jump in U.S. labor costs furthered the idea that the Federal Reserve would have to hike interest rates sooner rather than later.

"Europe is struggling to keep its head above water economically, and for the first time, there is the possibility Fed may have to shift from offense to defense," said Bruce Bittles chief investment strategist at RW Baird & Co.

Investor sentiment was also hit by Argentina's default after hopes for a deal with holdout creditors fell through. Argentinian stocks traded in the U.S. were hit, including Pampa Energy.

"We're a worldwide economy, so the credit of one country effects other countries, and a lot of the bond holders were U.S. based," said JJ Kinahan, chief strategist at TD Ameritrade.

"I think it's just a function of we had a terrific rally, and there are some things breaking down under the hood," said Dan Greenhaus, chief global strategist at BTIG LLC.

more...

http://www.cnbc.com/id/101883444

[AZ Mike]

1. Re: 4%+ GDP growth

The negativity is probably because the more rapidly GDP expands, the more distributed the gains are. Wall Street wants the gains going to them at 90%+. They can't have 65% or 70% gains....