By VICTOR REKLAITIS, INVESTOR’S BUSINESS DAILY
Stocks sustained mostly moderate losses on Monday, as investors prepared for the start of third-quarter earnings season.
The Nasdaq dropped 0.8%, weighed down by Apple’s (AAPL) 2% slide. The S&P 500 lost 0.4% and the Dow Jones industrial average dipped 0.2%. Volume was down sharply across the board amid little economic news. The Treasury market was closed for the Columbus Day holiday.
After the market’s close, Edwards Lifesciences (EW) plunged as the heart valves maker said it sees third-quarter revenue of $448 million, below Wall Street’s forecasts for $477 million and the company’s July target of $465 million to $485 million. Edwards was No. 41 in the latest IBD 50 lineup.
Apple slumped 2% in big turnover, falling further below its 50-day moving average. The stock, No. 18 in the latest IBD 50 lineup, is now just 4% above its recent handle buy point at 619.97, after being up as much as 14% from that level. Recent reports about Apple have focused on a strike at Foxconn, a Chinese company that manufactures the iPhone.
Alcoa (AA) rose 1% in light turnover, but remained below its 200-day moving average. The aluminum giant kicks off Q3 earnings season Tuesday with its report after the market’s close. Alcoa has a poor IBD Composite Rating of 10, near the worst-possible grade of 1.
On the upside, GNC Holdings (GNC) climbed 2% in strong volume. The specialty retailer is trying to break out past a 41.04 handle buy point. It lifted above that level on Monday, but finished the session under it. GNC is No. 32 in the latest IBD 50 lineup.