Stocks Lower, Pressured By Warnings

Stocks fell on Tuesday as
the Dow saw its worst day
since Katrina.
A disappointing forecast
from Best Buy
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started the session lower. The company guided Q3
to 0.28 – 0.32, down from the 0.34 average analyst estimate, and raised concern
about a weaker Fall season for retailers.


Economic news was mainly better-than-expected
but offered little help to the indices.
Wholesale prices rose less than expected in August and the U.S. trade gap
narrowed in July. The PPI rose 0.6% in August, less than the 0.7% expected. The
August data did not include information about the effect of Katrina. The trade
deficit narrowed to $57.9 billion.

After the close, OSI Pharmaceuticals
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said an FDA panel will recommend Tarceva for approval.

Before the open on Wednesday, look for earnings
from Lehman Brothers
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; 2.37 is the estimate.

Ebay
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was downgraded to sector perform at CIBC World Markets on concerns of challenges
related to the Skyle acquisition.

Nokia
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raised Q3 sales and earnings guidance.

Knight Ridder
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expects earnings to be about 20% lower in Q3 from the same period last
year.



Strong Sectors
were:  Semis 
(
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+0.23%    
Oil Services 

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+0.21%
  



Weak sectors
were:
   Airlines 

(
XAL |
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-5.97%      Healthcare 
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-2.36%      


Dow

-85.50
10,597.44


Nasdaq

-11.08 2171.75


S&P 500

-9.36
1231.20

Stocks in the news:

Ford
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is
selling Hertz for $15 billion.

Taser
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received $775,000 in new orders.

Georgia Pacific
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was raised to a Buy at Bank of America.

Monster Worldwide
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was upgraded to overweight at J.P. Morgan

Brice Wightman