Stocks Slip in Early Trade

Stocks were down in early-trade on Tuesday as the policy logjam in Washington pushed the shutdown to its sixth day.

Earlier on Monday, President Obama said that he would support a stop-gap solution, which would allow the Treasury to raise its borrowing limit and prevent U.S. sovereign default; separately one influential senator is believed to preparing a draft, which calls for some spending cuts and reforming tax laws as part of broader deal, according to Reuters.

At last check, the Dow Jones edged down 0.22%; the NASDAQ Composite Index lost 0.13% while the S&P 500 Index slipped 0.17%.

Shares of J C Penney & Company (NYSE: JCP) gained sharply in early-trade. J C Penney said in a statement that although it is still in its early stage of turnaround plans, sales results were showing improvement. The retailer also expects to end the current fiscal year with cash-in-hand of more than $2 billion.

Activist investor, Carl Icahn tweeted on Tuesday that has reached an agreement with Nuance Communications Inc. (NASDAQ: NUAN) under which the company will allow the billionaire to choose two nominees for two board seats.

Shares of McKesson Corporation (NYSE: MCK) climbed about 6% in early trade after the company said that it was in final stages of talks to acquire German drug distributor Celesio in deal valued at $ 5 billion, according to Dow Jones. The report said that the deal could be announced in coming days.

Yum! Brands Inc. (NYSE: YUM) and Alcoa Inc. (NYSE: AA) are expected to report quarterly results after the market close.

edliston

edliston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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