NEW YORK (TheStreet) -- Major U.S. stock markets tumbled Tuesday following Federal Reserve Chair Janet Yellen's prepared remarks to the Senate Banking Committee that some sectors of the markets, notably biotech and social media, appear overvalued.
The Dow Jones Industrial Average was slipping 0.24% to 17,015.06, the S&P 500 moved 0.52% lower to 1,966.87, and the Nasdaq plunged 0.96% to 4,397.85.
Shares of JPMorgan (JPM) were gaining 3.6% after the bank posted second-quarter earnings of $1.46 a share, beating analysts' estimates of $1.29 a share. Goldman Sachs (GS) was up 0.84% after the bank's earnings of $4.10 a share handily beat estimates of $3.05.
Markets boasted healthy gains Monday with the Dow closing well above the psychological threshold of 17,000, a level it had dipped below after European markets sold off last week.
On the U.S. data front, June retail sales rose less than expected, up 0.2% vs. the average estimate of 0.6%. Import prices rose by a smaller-than-forecast 0.1% in June, vs. the 0.3% consensus estimate. The July Empire State Manufacturing Index came in at 25.6 vs. the 17 reading expected by economists.
GoPro was surging more than 7.4% after JMP Securities initiated coverage of the high-definition camera maker with a market outperform recommendation, saying that the company is a market leader and that its growth can accelerate.
Reynolds American agreed to acquire Lorillard in a cash-and-stock deal valued at $68.88 per Lorillard share, or $27.4 billion. Lorillard and Reynolds American dropped 8.2% and 5%, respectively.
Intel, the chip giant, is forecast by analysts to report after Tuesday's closing bell second-quarter earnings of 52 cents a share on revenue of $13.69 billion. Wall Street expects Internet company Yahoo! to post second-quarter profit of 38 cents a share on revenue of $1.08 billion. Microsoft is planning its biggest round of job cuts in five years, as the software maker looks to slim down and integrate Nokia's handset unit, people with knowledge of the company's plans told Bloomberg.
-- Written by Andrea Tse and Keris Alison Lahiff in New York
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