US growth estimate causes stocks slide

A downward revision of US economic growth in the third quarter has sent stocks lower. Higher borrowing costs for Spain also renewed worries about Europe’s debt crisis.

The Commerce Department reported that the US economy grew at a 2% annual rate from July through September, down from the government’s initial estimate of 2.5%. Economists had expected the figure to remain the same.

The Dow lost 54 points, or 0.5%, to close at 11,494. Aluminium maker Alcoa led the Dow lower.

The Standard & Poor’s 500 fell 5 points, or 0.4%, to 1,188. The Nasdaq composite fell 2, or 0.1%, to 2,521.

Three stocks fell for every two that rose on the New York Stock Exchange. Volume was below average at 3.8 billion shares.