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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stocks Fall Most in a Month on IBM, Deere Downgrades

NEW YORK (TheStreet) -- U.S. stocks markets fell the most in a month Tuesday as IBM (IBM) and Deere & Company (DE) were downgraded and American Eagle Outfitters (AEO) cut its earnings outlook.

The S&P 500 dropped 0.6% to close at 1,697.37 while the Dow Jones Industrial Average also declined 0.6% to 15,518.74. The Nasdaq lost 0.7% to 3,665.77.

"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.

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
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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