Wall St. was spooked by weak Chinese economic data. Losing stocks included Netflix and Tesla. Bobbi Rebell reports.
China jolted investors worldwide on the first trading day of the year. Weak manufacturing data rekindled fears of a global slowdown, sending U.S. stocks plummeting. Stephen Wood of Russell Investments: SOUNDBITE: STEPHEN WOOD, CHIEF MARKET STRATEGIST, RUSSELL INVESTMENTS, (ENGLISH) SAYING: "The drivers of the markets today have been what's been driving the markets since last summer. It's been the Chinese economic deceleration. It's been the Federal Reserve raising interest rates, and it's the glut of oil." The U.S. pumped out weak data, too, on manufacturing and construction spending. On the downside: Netflix: Robert W. Baird thinks the video streaming company may post weaker U.S. subscriber results, so it downgraded the shares to "neutral" from "outperform." Tesla: The electric car maker delivered 17,400 vehicles, but that was at the low end of its quarterly forecast range. American Express and Bank of America. They lost the Fidelity account for credit cards to Visa and U.S. Bancorp. GM is investing $500 million in the riding sharing service, Lyft. They'll work together to develop a service for self-driving cars. The weak Chinese data also hurt European stocks. The German DAX lost more than 4 percent.