All stock gains for 2014 were wiped out for a few hours on Wednesday as fears about a slowing global economy and the spread of Ebola crushed stocks. Bobbi Rebell reports.
TV AND WEB RESTRICTIONS~**NONE*** US stocks avoid major meltdown and Netflix shares get hit after its earnings report. All stock gains for 2014 were wiped out for a few hours on Wednesday as fears about a slowing global economy, falling oil prices and the spread of Ebola crushed stocks and drove investors to safe-haven US Treasuries. The Dow, S&P, and Nasdaq fell more then 1 percent., but managed to come back form the edge of a bear market to close down. The only bright spot: The Russell 2000 small cap index was up. The yield on the benchmark 10-year Treasury at one point dropped below 2 percent -- the first time since May of 2013. And 30-year bond saw its yield crashed below 3 percent. Wells Fargo chief economist John Silvia: (SOUNDBITE) JOHN SILVIA, CHIEF ECONOMIST, WELLS FARGO, SAYING (ENGLISH): "There's been a fundamental re-assessment of the pace of economic growth going forward. And I think that is the driving force." Crude oil futures fell again, following their biggest daily drop in years on Tuesday. And Ebola fears smacked airline stocks, with United falling over 1 percent. Reuters. U.S. markets editor David Gaffen: (SOUNDBITE) DAVID GAFFEN, U.S. MARKETS EDITOR, REUTERS, SAYING (ENGLISH): "There's global growth, there's oil, ISIL, concern about central banks. Europe is clearly in a terrible position. But Ebola is a real pressure point right now, so you're seeing people selling the airlines and travel-related stocks." The Federal Reserve issued its so-called Beige Book saying U.S. economic growth was modest to moderate and that a number of districts reported "modest" wage growth Retail giant Wal Mart said operating expenses will grow at a rate somewhat faster than sales growth and operating income will be flat to slightly down in fiscal year 2016 Although beating on earnings, streaming video service Netflix shares fell sharply in the post market after reporting U.S. subscriptions were lower in the third quarter than the same period last year. Netflix blamed higher prices and added "we over-forecasted membership growth." Earlier in the day, Netflix shares were hit when HBO said it would launch a competing standalone streaming service next year. Time Warner, HBO's parent, rallied. In Europe, concerns about global growth sent investors fleeing. Shares suffered their steepest one-day drop in nearly three years.