Selling Spree Continues on Wall Street
Stocks fell for a third session Tuesday after the IMF cut its global growth forecast. The Dow and S&P 500 fell around 1% while the Nasdaq tumbled 1.5%; all three indices finished at their lows of the session.
Ironically, yesterday was the five-year anniversary of the all-time highs for the Dow (14,164) and S&P 500 (1,565).
Today, futures are pointing to yet another lower open on Wall Street.
Shares of Dow component Alcoa (NYSE:AA) are off about 1% in the pre-market. The aluminum giant came out with its third-quarter earnings last night, and while it beat expectations, reporting revenue of $5.8 billion, the company warned of lower demand for aluminum for the remainder of the year, largely because of a slowdown in China.
The picture is quite the opposite at Yum Brands (NYSE:YUM). The owner of Taco Bell, KFC, and Pizza Hut does 40% of its business in China; it said demand there was "stronger than ever." Yum raised its full-year profit outlook to show at least 13% growth. Yum shares are up more than 4% in the pre-market.
Apple (NASDAQ:AAPL) shares are flat, after falling to just under $636 yesterday. That marks a decline of nearly 10% for Apple. Shares hit their highest level ever, topping $705, the day the iPhone 5 was launched.
Some analysts and investors are wondering if the recent pullback is a buying opportunity, or a sign of a larger market deterioration. Apple shares are still up an impressive 55% this year. While Apple is not part of the Dow Jones Industrial Average, it composes 4% of the S&P 500 and more than 10% of the Nasdaq.
Today may be a troubling day for SunTrust Bank (NYSE:STI). A hacker group, known as Izz ad-Din al-Qassam, is warning that it will target SunTrust's website today, and Regions Financial's tomorrow, for a period of about eight hours.
Yesterday, the group, which allies itself with an Islamic terror organization, created a denial of service attack on Capital One (NYSE:COF). Some customers had some problems with the bank's site, experiencing a slowdown and even some outages.
The group says it won't stop its cyber attacks until the anti-Islam video released last month is removed from the Internet.
Izz ad-Din al-Qassam is the same group that has claimed credit for attacks against Bank of America (NYSE:BAC), Citigroup (NYSE:C), and the New York Stock Exchange last month.