U.S. stocks fell on Tuesday, led by losses in technology
after a brokerage downgrade Intel and other large companies because of concerns
about the U.S. earnings in the third quarter.
Shares of Intel, the largest manufacturer of semiconductors
in the world, lost 2.7 percent to $ 21.91 after reporting negative, at least
two brokerages. Robert W. Baird & Co lowered its price target for Intel,
citing weak demand for laptops.
News evoked feelings that sell all the shares of large cap
technology, including Apple, which is under pressure in recent weeks.
Michael James, trader at Wedbush Morgan in Los Angeles, made
Apple the poor in recent weeks, the main reasons for the decline in technology
stocks.
"Because Apple makes 20 percent of Nasdaq, has a hand
in technology stocks in general. Low semiconductor and Intel stock performance
made people cautious, "said James.
Apple shares, which reduces most of its early losses and
only fell 0.2 percent to $ 637.10 in trading midday.
Microsoft shares fell 1.6 percent to $ 29.31 and is regarded
as the greatest obstacle to the Nasdaq.
Parties Netflix slid 9.3 percent to $ 66.63 after Bank of
America Merrill Lynch cut shares streaming video "underperform" from
"buy."
The PHLX semiconductor index fell 1.5 percent.
Chinese Internet company Baidu has also been downgraded
Credit Suisse to "underperform" from "neutral." Its shares
shed 7 percent, to $ 106.29.
Analysts expect earnings reports for S & P 500 companies
to register a decline of about 2.4 percent compared to the same period last
year, according to Thomson Reuters. This means that the first quarterly decline
in three years for the S & P 500 corporate profits.
Warnings on earnings left investors cautious after the
meeting that took the S & P 500 up nearly 16 percent so far in 2012, rising
to nearly five years higher.
"The stock has been a big step for the entire year. Now
people expect more clarity on the third quarter results and guidance for the
fourth quarter," said James, adding that the volume of transactions
increased light Monday the volatility of the stock ahead of the earnings
season.
Dow Jones Industrial Average fell 84.95 points, or 0.63
percent, to 13,498.70. Standard & Poor's 500 Index fell 10.37 points, or
0.71 percent, to 1,445.51. The Nasdaq fell 37.41 points, or 1.20 percent to
3074.94.
Earnings season begins, when Dow component Alcoa Inc.
reported quarterly results after the closing bell Tuesday. The analysts expect
Alcoa's third quarter results show the aluminum company has reached
equilibrium, against a profit of 15 cents per share, a year earlier, according
to Thomson Reuters.
"Everyone is waiting to see what Alcoa said after the
bell," said John Petrides, portfolio manager of Advisors Capital
Management in Hasbrouck Heights, New Jersey.
"Alcoa does a very good job of describing the overall
growth: They are in all major markets significant, and they give a good reading
of what is happening in the global economy," he added.
Parts Alcoa rose 1.1 percent to $ 9.22.
Other major multinational corporations, who warned revenue,
citing weak demand in Europe and China, are FedEx Corp., Caterpillar Inc. and
Hewlett-Packard Co from FedEx paid 0.7 percent to 85.73 $, while from
Caterpillar fell 0.8 percent to $ 84.76. HP shares fell 0.9 percent to $ 14.33.
