Wall Street Falters Ahead of Friday Budget Deadline

Michael Teague |

Stocks ended lower across the board on Tuesday as the lack of market-moving economic data led to increased focus on the possibility of a decision from the Fed next week regarding the inevitable reduction of Treasury spending. All eyes will also be on Congress who, by this coming Friday will bump up against a deadline for concluding negotiations over the nation’s budget.

The Standard & Poor’s 500 index dropped by 0.32 percent to end the day at 1,802.62 points, while the Dow Jones Industrial Average was lower by 0.33 percent to 15,973.13. The NASDAQ’s losses were more modest at 0.20 percent to 4,060.49 points.

Tech shares put significant pressure on the S&P 500, with a number of large companies edging lower on heavy trading. Cisco Systems (CSCO) , Microsoft (MSFT) , Oracle (ORCL) , and AT&T (T) all ended the day in the red. Social media and internet-related stocks, however, were a different story, with Yahoo! (YHOO) nearly 3 percent higher by the closing bell.

Automobile-parts retailer AutoZone (AZO) rose over 3 percent by the closing bell after releasing its earnings statement for its fiscal first quarter that showed the company handily surpassing analyst estimates.

Most of the Dow’s components ended the day on losses, with the worst performances coming from services and consumer goods stocks. Coca-Cola (KO) , Procter & Gamble (PG) , Home Depot (HD) , and Wal-Mart (WMT) accounted for four of the five biggest losers on the benchmark index.

Internet techs also performed well on the NASDAQ, with Facebook (FB) , Zynga (ZNGA) , Groupon (GRPN) ending higher along with Yahoo. With so much hysteria surrounding social media techs, Equities.com’s own Jacob Harper explores the importance of ad revenue to the future of companies hoping to be successful in the industry.

Outerwall Inc. ($OUTR), the company formerly known as CoinStar, added nearly 3 percent on the day after announcing the specifics of a promised restructuring plan that promises to significantly cut costs via layoffs, scaling back of projects, and making changes to its RedBox DVD rental business.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
CSCO Cisco Systems Inc. 28.92 0.45 1.58 25,729,908
FB Facebook Inc. 117.89 0.19 0.16 20,035,494
GRPN Groupon Inc. 3.43 -0.01 -0.29 5,705,144
HD Home Depot Inc 133.20 -0.16 -0.12 5,017,700
KO Coca-Cola Co (The) 44.38 0.01 0.02 9,218,444
MSFT Microsoft Corporation 52.12 0.53 1.03 24,204,566
ORCL Oracle Corp. 40.13 0.23 0.58 7,972,174
OUTR Outerwall Inc 40.17 0.37 0.93 362,891
PG Procter & Gamble Co. 81.48 0.51 0.63 6,050,617
PUTKY P.T. UTD Tractors ADR 19.40 0.26 1.36 1,171
T AT&T Inc 38.62 0.12 0.31 14,711,598
WMT Wal-Mart Stores 70.48 0.24 0.34 7,269,763
YHOO Yahoo! Inc. 35.59 -1.94 -5.17 34,001,485
ZNGA Zynga Inc. 2.61 0.05 1.95 5,021,393

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