Stock Market Today: Social Media, Biotech Suffer as Janet Yellen Shares Concerns on Valuation
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
Prominent companies in the social media space sold off: Twitter
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.
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.
Stocks to watch after the bell include Intel