Stock Market Today: Social Media, Biotech Suffer as Janet Yellen Shares Concerns on Valuation

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NEW YORK ( TheStreet) -- Much of the  Federal Reserve 's report on monetary policy was overlooked on Tuesday with most of the attention focused on Chair Janet Yellen's comments that some sectors of the markets, notably biotech and social media, were overvalued.

In prepared remarks, Yellen told the Senate Banking Committee she saw certain sectors as "substantially stretched," sending shares tumbling. 

The iShares Nasdaq Biotechnology Index ETF   slid 2.2% on the remarks, as MannKind  dropped 1%, Geron  moved 5% lower, and Ariad Pharmaceuticals   was down 5.1%.

Prominent companies in the social media space sold off: Twitter  fell 1.1%,  Facebook  dropped 1.1%, Yelp  slid 3% and LinkedIn  was down 0.75%.

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Better-than-expected results out of the banking sector is keeping markets' losses pared.  The Dow Jones Industrial Average nudged 0.03% higher to 17,060.68, and the S&P 500 slipped 0.19% to 1,973.28. The Nasdaq tumbled 0.54% to 4,416.39, dragged on by losses in biotech and social media names.

JPMorgan popped 3.5% after posting second-quarter earnings of $1.46 a share, 17 cents higher than analysts' estimates. Goldman Sachs   added 1.3% after earnings of $4.10 a share flew past expectations of $3.05.

On the U.S. data front, June retail sales rose less than expected, up 0.2% vs. the average estimate of 0.6%. However, May's reading had been upwardly revised after the initial release, leading to the belief these results could do likewise.

"There's no reason to think this was a final number. It seems like we've been prone to a lot of revisions lately," Voya Investment Management senior market strategist Karyn Cavanaugh told TheStreet, also noting the positive growth still marks a record high in retail sales.

Import prices rose by a smaller-than-forecast 0.1% in June, vs. the 0.3% consensus estimate. The July Empire State Manufacturing Index came in at 25.6 vs. the 17 reading expected by economists.

Reynolds American   agreed to acquire Lorillard  in a cash-and-stock deal valued at $68.88 per Lorillard share, or $27.4 billion. Lorillard and Reynolds American dropped 10.5% and 6.9%, respectively.

Michael Kors shares slipped 7.3% after Citigroup lowered its price target due to forecast weakness in its handbag selection.

GoPro surged 13% after JMP Securities initiated coverage of the high-definition camera maker with a market outperform recommendation, saying that the company is a market leader and that its growth can accelerate.

Stocks to watch after the bell include Intel  and Yahoo! , both of which are due to release earnings. The chipmaker is forecast by analysts to report second-quarter earnings of 52 cents a share on revenue of $13.69 billion. Wall Street expects Internet company Yahoo! to post second-quarter profit of 38 cents a share on revenue of $1.08 billion.