US stocks slipped in morning trade on Tuesday as investors remained cautious ahead of the unofficial start of third-quarter earnings season after the close and the International Monetary Fund (IMF) dampened sentiment.

According to its "World Economic Outlook", the IMF said that "prospects have deteriorated further and risks increased". It now expects the world economy to grow 3.3% in 2012 compared to the prior 3.5% July estimate and just 3.6% in 2013, down from the previous 3.9% forecast. Forecasts for the Eurozone, UK and emerging markets were all cut.

The IMF Survey Magazine said that the new forecasts rest on two crucial policy assumptions: "that European policymakers get the euro area crisis under control and that policymakers in the United States take action of tackle the 'fiscal cliff' and do not allow automatic tax increases and spending cuts to take effect. Failure to act on either issue would make growth prospects far worse.

Market analyst Craig Erlam from Alpari this afternoon: "Overall the revision won't make too much of a difference. We are anticipating a pullback in share prices over the next few weeks with third-quarter reporting expected to show poor earnings."

Stateside, confidence among small businesses eased off in September, according to the results of a survey by the National Federation of Business. The Federation's optimism index retreated to 92.8 from 92.9 in August, the fourth time in the last five months that the index has moved lower.

Brokers weigh in


As always at the start of quarterly earnings seasons, all eyes are on aluminium firm Alcoa today as it is the first Dow Jones component to report. Analysts are expecting earnings per share on or around zero on sales of $5.6bn.

KFC and Pizza Hut owner Yum! Brands is also set to serve up figures after the close of trading. The market is expecting earnings per share of $0.97 on sales of $3.7bn.

Until then, corporate news is a bit thin, leaving the field open for brokers to move share prices with research notes.

Computer chip colossus Intel is marked down after Sanford C. Bernstein downgraded the shares.

In contrast, RadioShack is buzzing after BofA Merrill Lynch upgraded the consumer electronics retailer after the shares had taken a tumble recently.

The same broker reacted to Netflix's sharp rise on Monday by downgrading the media streaming firm to "under-perform" from "buy", because the stock had passed the broker's target price.

Edwards Lifesciences was among the worst performing blue-chips after it warned third-quarter sales are set to be below market expectations. The heart valve maker lowered third-quarter sales guidance after the bell on Monday to $448m, having previously indicated the figure would be somewhere between $465m and $485m.

Other markets


As tensions rise between Syrian and Turkey, the price of oil is heading higher. The November contract for West Texas intermediate was up $2.92 to $92.25 a barrel by 13:12 in New York. That's a gain of 3.27%.

Gold for December delivery is down again today, however, at $1,767.40 an ounce, $8.30 lower (0.47%) on the day.


S&P 500 - Risers
Alpha Natural Res (ANR) $7.19 +6.05%
Newfield Exploration Co (NFX) $32.40 +5.40%
Peabody Energy Corp. (BTU) $23.54 +3.98%
CONSOL Energy Inc. (CNX) $32.94 +3.81%
Cliffs Natural Resources Inc. (CLF) $41.94 +3.35%
United States Steel Corp. (X) $21.05 +3.34%
GameStop Corp. (GME) $23.96 +3.05%
Helmerich & Payne Inc. (HP) $47.89 +2.82%
Eli Lilly and Company (LLY) $52.19 +2.78%
Noble Corp (NE) $36.00 +2.56%

S&P 500 - Fallers
Edwards Lifesciences Corp. (EW) $87.35 -18.68%
Netflix Inc. (NFLX) $67.82 -7.75%
Masco Corp. (MAS) $14.88 -4.43%
Zimmer Holdings Inc. (ZMH) $64.35 -3.70%
Varian Medical Systems Inc. (VAR) $58.54 -3.48%
Intuitive Surgical Inc. (ISRG) $491.81 -3.44%
Borg Warner Inc. (BWA) $70.12 -3.40%
Covidien Plc (COV) $57.92 -3.13%
Fossil Inc. (FOSL) $84.00 -3.07%
Akamai Technologies Inc. (AKAM) $38.39 -3.06%

Dow Jones I.A - Risers
McDonald's Corp. (MCD) $92.19 +0.71%
Alcoa Inc. (AA) $9.18 +0.60%
Coca-Cola Co. (KO) $38.65 +0.18%
Chevron Corp. (CVX) $117.82 +0.17%
Merck & Co. Inc. (MRK) $46.41 +0.15%
Exxon Mobil Corp. (XOM) $92.79 +0.12%

Dow Jones I.A - Fallers
Intel Corp. (INTC) $21.98 -2.35%
Johnson & Johnson (JNJ) $68.19 -1.80%
Walt Disney Co. (DIS) $51.55 -1.49%
Microsoft Corp. (MSFT) $29.34 -1.48%
Hewlett-Packard Co. (HPQ) $14.27 -1.31%
Home Depot Inc. (HD) $61.07 -1.31%
3M Co. (MMM) $94.23 -1.19%
E.I. du Pont de Nemours and Co. (DD) $49.66 -1.19%
United Technologies Corp. (UTX) $77.46 -1.16%
General Electric Co. (GE) $22.70 -0.96%

Nasdaq 100 - Risers
Green Mountain Coffee Roasters Inc. (GMCR) $22.74 +0.91%
Sears Holdings Corp. (SHLD) $59.02 +0.75%
Warner Chilcott Plc (WCRX) $13.26 +0.15%
Electronic Arts Inc. (EA) $12.99 +0.08%
Liberty Interactive Corp (LINTA) $18.78 +0.05%

Nasdaq 100 - Fallers
Netflix Inc. (NFLX) $67.82 -7.75%
Baidu Inc. (BIDU) $106.72 -6.62%
Research in Motion Ltd. (RIMM) $7.90 -4.13%
Nuance Communications Inc. (NUAN) $23.22 -3.85%
Intuitive Surgical Inc. (ISRG) $491.81 -3.44%
Fossil Inc. (FOSL) $84.00 -3.07%
Akamai Technologies Inc. (AKAM) $38.39 -3.06%
Alexion Pharmaceuticals Inc. (ALXN) $111.73 -3.05%
Autodesk Inc. (ADSK) $31.50 -2.93%
Dentsply International Inc. (XRAY) $36.99 -2.86%

Related share prices