U.S. markets down Tuesday

A slight morning lift in U.S. markets eroded Tuesday after the Bureau of Economic Analysis confirmed its estimate of third quarter contraction.

The economy shrank 0.5 percent in the third quarter, the Bureau said, leaving a previous estimate unchanged.

General Motors Corp. and Ford Motor Co. each dropped 17 percent after Credit Suisse downgraded GM, The Wall Street Journal reported. Automotive concern Lear fell 11 percent. American Axle & Manufacturing Holding Inc. slipped 7 percent.

In early afternoon trading, the Dow Jones industrial average fell 46.83 points or 0.55 percent to 8,472.94. The Standard & Poor’s 500 fell 5.15 or 0.59 percent to 866.48. The Nasdaq composite index dropped 10.48 or 0.68 percent to 1,521.87.

The benchmark 10-year U.S. Treasury bond fell 1/32 to yield 2.16 percent.

The dollar was mixed. The euro rose to $1.3957, compared to Monday’s $1.3944. Against the Japanese yen, the dollar rose to 90.66 yen, up from Monday’s 90.08 yen.

In Tokyo, the Nikkei average gained 135.26 points to 8,723.78, up 1.57 percent.

In London, the FTSE 100 index gained 4.64 or 0.11 percent to 4,253.80.