This Day On The Street
Continue to site
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

Stock Market Today: Biotech, Social Media Stocks Slide Following Yellen's Remarks

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 iShares Nasdaq Biotechnology Index ETF (IBB) slid 2.6% on the remarks, as MannKind (MNKD) dropped 1.7%, Geron (GERN) moved 5% lower, and Ariad Pharmaceuticals (ARIA) was down 4.5%.

Prominent companies in the social media space sold off: Twitter (TWTR) fell 1.4%, Facebook (FB) dropped 1.8%, Yelp (YELP) slid 4.4% and LinkedIn (LNKD) was down 1.4%.

July 15 Premarket Briefing: 10 Things You Should Know

Stock Market Today: Dow Surges Above 17,000 as Citigroup Tops Street

Why You Should Blow Off the Retail Sales Report -- Yet Again

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.

Other individual stocks to watch Tuesday include Microsoft (MSFT), Yahoo! (YHOO), Intel (INTC), GoPro (GPRO - Get Report), Reynolds American (RAI), and Lorillard (LO).

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

Follow @AndreaTTse

>Contact by Email

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LO $0.00 0.00%
GPRO $11.68 -4.50%
AAPL $95.29 1.80%
FB $117.72 -0.72%
GOOG $694.97 -0.46%


Chart of I:DJI
DOW 17,769.98 -121.18 -0.68%
S&P 500 2,064.04 -17.39 -0.84%
NASDAQ 4,773.0850 -44.5090 -0.92%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs