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Momo Stocks Tumble as Traders Get Defensive (YELP) (GMCR) (SODA) (RIMM) (more...)

July 10, 2012 2:55 PM EDT
Momentum traders are selling recent hot stocks Tuesday as investors seem to be positioning themselves defensively following a nearly 2.5 percent decline in the S&P 500 over the last five trading sessions. Although this move initially appeared to be some mere profit taking following a 7.5 percent rise in equities over June, the shift away from these momo names -- and now certainly a mid-day warning from Cummins (NYSE: CMI) -- could hint at some underlying weakness. Additionally, earlier warnings from Applied Materials (Nasdaq: AMAT) and AMD (NYSE: AMD) do not bode well for the second-quarter earnings season, kicked-off less than 24 hours ago with Alcoa's (NYSE: AA) report.

  • Yelp (Nasdaq: YELP) down 8.6 percent
  • Green Mountain (Nasdaq: GMCR) down 8.1 percent
  • SodaStream (Nasdaq: SODA) down 7.2 percent
  • Research In Motion (Nasdaq: RIMM) down 5.9 percent
  • Groupon (Nasdaq: GRPN) down 5.4 percent
  • Zynga (Nasdaq: ZNGA) down 4.8 percent
  • Netflix (Nasdaq: NFLX) down 3.4 percent
  • LinkedIn (Nasdaq: LNKD) down 2.7 percent
  • Priceline (Nasdaq: PCLN) down 2.6 percent
The S&P 500 is now down about 12 points, or nearly 0.9 percent, since Cummins' warning just before 1:30pm ET. Downside intensified as the index gave up a key level at 1,345. The Dow Jones Industrial Average is down 106 points to 12,629 at last check; the Nasdaq is down almost 1.2 percent to 2,897.


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