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US stocks tumble on weak US data

New York - US stocks slumped on Tuesday as traders weighed data showing a weak rise in US wholesale prices and strong earnings from Wal-Mart amid persistent European debt concerns.

The blue-chip Dow Jones Industrial Average dropped 103.92 points (0.93%) to 11 098.05 by 1505 GMT. The S&P 500 index, a broader measure of the market, lost 9.95 points (0.84%) to 1 187.70.

The tech-rich Nasdaq slid 19.52 points (0.78%) to 2 494.95.

Shortly before the opening bell, the Labor Department reported that US wholesale prices rose a modest 0.4 percent for the third straight month in October, underscoring the weak economic recovery.

The rise in the producer price index (PPI) was much weaker than the 0.8% rise expected by most analysts.

Excluding volatile food and energy prices, so-called core wholesale inflation fell 0.6%, the first decline since October 2009.

Investors also followed with concern the eurozone's struggle to deal with sovereign debt, especially in Ireland, amid growing speculation that the former Celtic Tiger nation could be bailed out.

"Fears about tightening Chinese monetary policy and a seemingly inevitable bailout of Ireland are squeezing Wall Street bulls out of the market," said Joseph Hargett of Schaeffer's Investment Research.

European finance ministers were to meet in Brussels to grapple with a spreading debt crisis that has already brought Greece to its knees, and now threatens Ireland and also Portugal.

In corporate news, Wal-Mart, the world's largest retailer, said on Tuesday its net quarterly profit climbed 9.8% to $3.4bn, beating expectations, as it expands international operations.

Wal-Mart shares rose 2.2% on Wall Street.

Home Depot shares jumped 3.3% after the do-it-yourself retailer posted a stronger than expected quarterly profit of $834m.

And US automaker General Motors raised the initial share price for its upcoming public offering, expected to take place on Thursday, in a sign of confidence as it seeks to free itself of government ownership.

GM said its 365 million shares of common stock will be floated in a range of $32 to $33 per share, up from a previous range estimate of $26 to $29 per share.

At the current pricing, GM could raise $17.9bn in its landmark initial public offering, which would make it the second-largest IPO in US history after Visa, which raised $18bn in 2008.

The bond market rose.

The yield on the 10-year Treasury bond declined to 2.88% from 2.91% on Monday, while that of the 30-year bond fell to 4.33% from 4.37%. Bond prices and yields move in opposite directions.

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