Dow Ends Down 73 on Slow Economic Growth; BioTech down 0.5% as well

NEW YORK (AP) -- Stocks pulled back Friday after the Commerce Department reported that the economy grew at the slowest pace in more than three years and stirred concern that a desired soft landing in the economy might prove elusive.


Investors have bid up stocks sharply in October on the notion that the economy is slowing, but not in a way that would threaten corporate profits and consumer spending. Investors are also counting on a gradual slowdown to reduce the threat of inflation and convince the Federal Reserve to lower short-term interest rates.

While investors expected Friday's advance reading on gross domestic product would show slowing growth, the report underscored concern that a cooling housing market could spill over into other parts of the economy.

"I think that the market actually was poised for profit-taking and consolidation," said Quincy Krosby, chief investment strategist at The Hartford. She contends the GDP report gave investors an excuse to catch their breath after the recent run-up and called the pullback a healthy pause.

Dow Ends Down 73, Nasdaq Drops 28 After GDP Report Shows Slowest Growth in More Than 3 Years