Stocks Slip After Acceleration In Us Growth Prompts Fear Of A Fed Pullback; Twitter Soars

People say how much it’s up, but it’s only up from where it crashed.” As for valuations, he said on “Squawk Box” that at the height of the Internet bubble “in 1999 the stock market was selling for 33 times earnings.” Stocks are now selling for around 14 times, he said. “They’re cheap on stock valuations alone.” The Baron Capital chairman and CEO formed the investment company that bears his name in 1982. It currently has $23.8 billion in assets under management. The family of Baron funds have all returned at least double-digit gains in the past five years. Being a long-term investor, Baron said he doesn’t pay much attention to speculation over when the U.S.

The move follows a plunge in inflation to 0.7 percent year-on-year in October and a slowdown in manufacturing and services activity, combined with a strengthening euro. Stocks pushed higher strongly on Thursday afternoon, before events in the U.S. caused the rally to fizzle out. The Bank of England also met on Thursday but left monetary policy unchanged. Investors are now looking ahead to the central bank’s inflation report due out next Wednesday, with Governor Mark Carney likely to give an update on growth forecasts.

Bangkok’s SET index was down 1.4 percent at 1,405.03, the lowest close since Nov. 4, extending a 0.7 percent slide on Thursday. It was down 1.7 percent on the week, the region’s second-worst performer. Philippine stocks fell for a sixth session, with the benchmark index closing down 1.3 percent at the lowest since Oct. 1. It was Southeast Asia’s worst performer on the week, dropping 3.5 percent, the biggest since Aug.

Asian stocks followed Wall Street lower after data that showed the U.S. economy grew 2.8 percent in the third quarter, nearly a percentage point faster than economists had predicted. That led many investors to believe the Fed would start pulling back its bond buying program, with some predicting it could happen as early as December. The Fed is buying $85 billion in bonds every month to hold down interest rates to spur hiring and borrowing. Investors were also staying on the sidelines as they await details from the four-day meeting in Beijing starting Saturday. Some expect the meeting to produce a wave of reforms aimed at helping the worlds No.

Frances CAC 40 index /quotes/zigman/3173214/realtime FR:PX1 -1.00% dropped 1% to 4,239.43, after the country lost its AA+ rating. Standard & Poors pointed to concerns about the countrys growth prospects. Adding to pressure on the French (visit site) index, data showed the countrys industrial production dropped 0.5% in September, missing expectations of a small rise. Banks slid in Paris, with shares of Societe Generale SA /quotes/zigman/167398/realtime FR:GLE -2.81% down 3%, BNP Paribas SA /quotes/zigman/132292/realtime FR:BNP -1.47% off 1.4%, and Credit Agricole SA /quotes/zigman/295441/realtime FR:ACA -1.09% 1.2% lower.

The robust growth certainly raises the possibility of the Fed pulling back in December, said Peter Cardillo, chief market economist at Rockwell Global Capital. The Fed is going to test the water. The Fed is buying $85 billion of bonds every month to hold down interest rates and encourage hiring and borrowing. The program has also helped drive the stock market rally by lowering bond yields, making them less appealing to investors. Another key economic report comes out on Friday, the governments jobs survey for October. Economists forecast that U.S. employers added 122,000 jobs, down from 148,000 the month before, reflecting a 16-day partial shutdown of the federal government.


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