Weak GDP and sales slump weigh on stocks

NEW YORK (CNNMoney) -- All eyes are looking at Europe today, as German Chancellor Angela Merkel and French President Nicolas Sarkozy meet to coordinate a strategy for coping with the expanding financial crisis.

Sovereign debt worries that have plagued the Old Continent for more than a year, were recently joined by concerns for slowing economic growth.

Eurostat, the EU statistics agency, reported Tuesday that gross domestic product for the 27 members of the European Union rose just 0.2% in the second quarter.

Germany, which is the strongest European economy, reported a significant decline in its GDP growth for the second quarter. The iShares MSCI Germany index (EWG) fell more than 2% on the news, bringing its year-to-date loss to almost 10%.

Meanwhile, Wal-Mart (WMT, Fortune 500) announced earnings slightly above expectations and raised guidance, which sent its stock up almost 4%. But the world's biggest "brick and mortar" retailer continues to have troubles domestically, where its same-stores sales keep falling. International revenues are still the only source of organic growth.

Economic motor stalled, European stocks ease

These are among the popular themes on StockTwits Tuesday:

firstadopter: So instead of euro-bonds, Europe gets a financial transaction tax. That is going to help market confidence! NOT! $$

upsidetrader: The piano on Germany's back is starting to weigh $EWG

CoderTrader: $$ Germany is back in protectionist mode, circa 1930s.

charlesrotblut: Looking at $WMT. Same-store sales at Wal-Mart stores fell. Nearly seven percentage points of per share growth were due to stock buybacks.

etfdigest: $WMT 2nd qrt profit up 5.7%, fueled by int'l sales, exp cutting; still not able to reverse 2-year US sales slump . CHEAP DOLLAR FROM BEN $$