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
TheStreet Open House

Fitch Places U.S. on Rating Watch Negative, Markets Slump

Stocks in this article: ^DJI^GSPC^IXICFLIRFDXSCHWTDC

NEW YORK (TheStreet) -- Major U.S. stock markets slumped Tuesday as Republicans and Democrats failed to show any meaningful progress in negotiations to raise the nation's borrowing limit. Shortly after the close, Fitch Ratings placed the U.S. 'AAA' credit on rating watch negative.

The S&P 500 dropped 0.71% to 1,698.06. The Dow Jones Industrial Average dipped 0.87% to 15,168.01. The Nasdaq decreased 0.56% to 3,794.01.

Speaker John Boehner said earlier on Tuesday that Republicans and House Democrats continued to engage in dialogue about the debt ceiling and budget but that there was no guarantee for a resolution of the three-week old impasse.

Senate talks had paused by Tuesday afternoon as Senate Minority Leader Mitch McConnell waited to see if House Republicans would pass their own version of a deal, according to Politico, citing aides and senators close to the talks. At the closing bell of the markets, the House was still fleshing out a proposal.

In company news, Teradata  (TDC)posted the biggest loss in the S&P 500, plummeting 18% to $42.91 after the computer-data storage slashed its 2013 forecast to adjusted earnings per share in the range of $2.70 to $2.80 on essentially unchanged revenue versus 2012's $2.67 billion. The company said the lowered guidance reflects weak business performance in the Asia, Pacific and Japan markets as well as in the Middle East and Africa.

Charles Schwab (SCHW)was one of the top gainers in the S&P, surging 4.6% to $23.03 after the San Francisco-based discount broker forecast that it can achieve an outpacing of revenue growth over expense growth by about 300 to 500 basis points in fiscal 2014 as profit increased 17% to $290 million in the third-quarter.

FedEx  (FDX) jumped 4.1% to $120.08 after the shipping giant announced a new share repurchase program of up to 32 million of its outstanding shares of common stock.

FLIR Systems  (FLIR) plunged 13.8% to $28.59 after the imaging and sensor systems maker said that it plans to shut down up to six of the company's sites in the U.S. and Europe to help save more than $20 million a year amid expectations of a hit to third quarter results due to weakness in markets with exposure to the U.S. federal government. The company now expects 2013 revenue to fall in the range of $1.45 billion to $1.5 billion and adjusted net income to come in in the range of $1.38 to $1.43 a share versus the prior outlook of revenue of $1.5 billion to $1.6 billion and net income of $1.56 to $1.66 a share.

The benchmark 10-year Treasury was down 11/32, lifting the yield to 2.734%.

-- Written by Andrea Tse and Joe Deaux in New York

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 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

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