INSTANT VIEW: GE cuts guidance, halts buyback

NEW YORK (Reuters) - General Electric Co. cut its third-quarter and full-year financial forecast and halted its buyback plans because of turmoil in the financial services markets. The industrial conglomerate, widely seen as a barometer for the U.S. economy said it would earn between 43 and 48 cents per in the third quarter, down from a previous outlook of 50 to 54 cents. General Electric shares fell 5.1 percent to $23.34 before the bell as company on the warning. The following is reaction from analysts and investors: PHILIPPE GIJSELS, SENIOR EQUITY STRATEGIST AT FORTIS BANK, IN BRUSSELS "It's not that surprising. The economy is clearly slowing, so it's normal to see GE, heavily involved in the economy as a whole, warning on its outlook. I fear that there will be more of the same in the industrial sector in a not too distant future." PETER CARDILLO, CHIEF MARKET ECONOMIST, AVALON PARTNERS, NEW YORK: "This part of the confession season. Obviously this announcement (from GE) will restrain the markets a bit, but I think the big story remains the rescue plan, which will obviously be approved very shortly. "I expect that in this pre-earnings season we're going to see a lot of these sort of announcements and I think the market is aware of that. The credit crunch has really been severe and it's taken its toll on the economy and corporate America. I think we're a headed for a very sour third-quarter earnings season." (Reporting by Blaise Robinson and Ellis Mnyandu; Compiled by Edward Tobin) ʘ