This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Stocks Finish Near Session Lows


NEW YORK ( TheStreet) -- The major U.S. stock averages finished just above session lows Tuesday as the International Monetary Fund's downgrade of its global economic outlook added to investor skittishness heading into the start of the new earnings season.

Greece was also in focus as German Chancellor Angela Merkel was greeted by protests over austerity measures during her first visit to the country since the debt crisis began. Uncertainty about Spain's bailout plans persisted as well.

The Dow Jones Industrial Average closed down 110 points, or 0.81%, at 13,473. The blue-chip index, which has now fallen two straight days, is still up 10.3% so far in 2012.

Breadth within the Dow was very negative with losers ahead of winners, 27 to 3. The biggest percentage decliners were Intel (INTC), Microsoft (MSFT), and Johnson & Johnson (JNJ - Get Report).

Johnson & Johnson shares finished down 1.5% after the stock was cut to sell from neutral at Goldman Sachs, which said the drugs giant's growth potential is already reflected in the price and that the company needs more "transformational pipeline opportunities."

Boeing (BA), McDonald's (MCD), and Alcoa (AA) were posting gains.

Shares of Alcoa were up marginally in after-hours action after the aluminum producer -- the first Dow component to report each quarter -- delivered a surprise profit, helped by productivity improvements and strong sales.

James Kee, president and chief economist of San Antonio's South Texas Money Management believes the low expectations about the third quarter, which is anticipated to see the first year-over-year earnings decline for the S&P 500 since the third quarter of 2009, could work in the favor of the companies who do manage to exceed estimates.

"We don't really expect to see that for companies in general though -- maybe a couple of handful of core companies if they beat for whatever reason," he said. "It'd be a much bigger event because of the pessimism."

Kee thinks the companies that miss expectations will likely be those with more international exposure given the slowdown in China.

The S&P 500 lost more than 14 points, or 0.99%, to settle at 1441.48, while the Nasdaq saw the deepest selling, dropping more than 47 points, or 1.52%, to finish at 3065.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.46 0.00%
ANGO $18.60 0.00%
JNJ $102.51 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs