By VINCENT MAO, INVESTOR’S BUSINESS DAILY
Stocks stumbled Tuesday in reaction to the International Monetary Fund’s reduced forecast for global economic growth.
The Nasdaq tumbled 1.5% and closed below its 50-day moving average. The S&P 500 lost 1%, the Dow Jones industrial average 0.8%. Both are still above their 50-day lines. Volume surged across the board from Monday’s holiday-dampened pace.
After the close, Alcoa (AA) rose more than 1% after delivering Q3 earnings and sales above estimates. The aluminum giant reported a profit of 3 cents a share on revenue of $5.83 billion. Analysts had expected the company to break even on sales of $5.54 billion.
Yum Brands (YUM) also topped profit expectations, and its shares rose in extended trading.
In the regular session, Edwards Lifesciences (EW) plunged 21% and sliced its 50-day and 200-day lines in monster volume. Citing austerity measures in Europe, the medical gear maker late Monday pegged Q3 revenue at $448 million, down from a prior forecast of $465 million-$485 million. Analysts’ views are for $476.6 million.
Chuy’s Holdings (CHUY) suffered its biggest one-day loss since its July 24 debut on the Nasdaq. The stock tumbled 7% in heavy trading and wiped out nearly all of last week’s work.
LinkedIn (LNKD) dropped 4% in fast trade and closed slightly below a 113.10 buy point from a cup-with-handle base. The stock has now given back an 11% gain, but it closed just above its 50-day line.
Apple (AAPL) ended off its session lows, but still fell for the fourth straight session. It ended fractionally lower in nearly twice its average trade. The stock came close to wiping out all gains from its August breakout from a cup-with-handle base. It closed about 3% past a 619.97 buy point Tuesday.