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Stock market declines after World Bank cuts economic outlook

Stock market declines after World Bank cuts economic outlook
Stocks fell early Wednesday after the World Bank slashed its global economic forecast. (Associated Press)

Stock prices slipped early Wednesday after the World Bank cut its global economic forecast, including reduced estimates for the United States and China.

Investors also were assessing the surprise primary defeat of Rep. Eric Cantor (R-Va.), the House majority leader, and whether that could foreshadow heightened gridlock and political tension in Washington.

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As of 7:15 a.m. Pacific, the Dow Jones industrial average was off 76.10 points, or 0.5%, at 16,869.83. The blue-chip indicator has declined only one day this month after falling on only seven of 21 trading days in May.

Airline stocks were lower Wednesday, with United Continental Holdings Inc. and American Airlines Group down.

The World Bank cut its outlook for global growth this year to 2.8% from 3.2% in January. Growth of less than 3% is generally considered to be subpar.

The U.S. is expected to expand at a tepid rate of 2.1%, down from the previous estimate of 2.8%. China is projected to expand at a 7.6% clip, down from 7.7%.

Follow Walter Hamilton on Twitter @LATwalter

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