Stocks Fall Most in a Month on IBM, Deere Downgrades
"On the whole, we would say the data continues to paint a picture of an economy that is exhibiting gradual and grudging improvements," Russ Koesterich, Blackrock's chief investment strategist in New York, said in a note. "That said, however, we believe investors are likely to witness more volatility when we get into the fall. In our view, September is likely to provide three challenges for equity markets."
Koesterich said that among those challenges is that September is a month when the calendar has "traditionally mattered" -- and it has historically been the worst month for stock prices."Overall, we still believe that equity valuations are reasonable and that prices can continue to advance over the next year, but we would also advocate a more defensive posture going into the fall." Deere lost 1.9% to $81.20 after William Blair analysts cut their view on the stock to "underperform" from "market perform" citing deteriorating fundamentals for U.S. farmers in the coming years. IBM fell 2.3% to $190.99 as Credit Suisse downgraded the shares to underperform. In explaining their downgrade, Credit Suisse cited concerns about IBM's future "organic" growth, free cash flow and software revenue. J.C. Penney (JCP) tumbled 3.9% to $13.28 after falling as low as $12.65 as small vendors selling to the retailer reportedly had problems getting credit.J.C. Penney Survival Guide American Eagle plummeted 12% to $17.57 after the teenage and young adults clothing company reduced its current-quarter earnings guidance to 10 cents a share from last year's 21 cents due to weaker than expected sales and margin results. Follow @atwtse Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.>
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV