After so many negative pre-announcements, no one should be surprised if third-quarter earnings season gets even uglier than current expectations for the first year-over-year decline since the financial crisis.
Other companies reporting on Tuesday are ADTRAN ( ADTN), EXFO ( EXFO), and Yum! Brands ( YUM) The economic calendar is light again on Tuesday, headlined by the National Federation of Independent Business small business sentiment survey for September at 7 a.m. ET. The consensus estimate is for a tick up to 93.3 reading from 92.9 last time around. There will also be some data on retail sales with Johnson Redbook's weekly index just before 9 a.m. ET and the ICSC-Goldman Sachs weekly chain-store index due at 7:45 a.m. ET. Jim O'Sullivan, chief U.S. economist at High Frequency Economics, thinks the NFIB survey could come in shy of expectations. "We expect a pause after last month's 1.7 point rise; a reversal of some of August's gains has already been reported for the two labor components," he noted in commentary released late Monday. O'Sullivan is looking for a minimal tick up to an even 93.0 in the index, which he notes is derived from 10 components. With technology a big headwind again on Monday, the action in Apple ( AAPL) gets more and more worrisome and it's sure to be market mover for the rest of the week. An announcement about an iPad Mini may reportedly come this week, and contrary to the run-up ahead of the iPhone 5's launch, the stock has been beat-up of late. Monday's close at $638.17 was the stock's first finish below $640 since mid-August, and it's now down 9.5% since hitting an all-time high of $705.07 on Sept. 21. In after-hours action, Apple dipped down as low as $635.25. And finally, a big mover after Monday's closing bell was Edwards Lifesciences ( EW). The Irvine, Calif.-based heart valve maker gave a weak outlook for the third quarter, citing the impact of austerity measures in Europe and other factors. The company expects sales of $448 million in the September-ended quarter, below its previous targeted range of between $465 million to $485 million. Edwards said transcatheter heart valve sales were "below expectations" for the quarter, with "global sales estimated at $124 million, including U.S. sales of $55 million." Wall Street's consensus estimate is for revenue of $476.6 million in the quarter. The stock was last quoted at $90.50, down nearly 16%, on late volume of just below 400,000, according to Nasdaq.com. -- Written by Michael Baron in New York. >To contact the writer of this article, click here: Michael Baron.