Stocks slipped for a second day with the Dow industrials posting a fractional gain Tuesday as a gauge of home-builder sentiment showed improvement in September and FedEx reduced its profit forecast. FedEx dropped 3.1% after the co. lowered its anticipated earnings for its fiscal year, citing the softening global economy. The National Association of Home Builders/Wells Fargo housing-market index gained 3 points to a seasonally-adjusted reading of 40 in September, the highest the index has been since June 2006. The current-account deficit shrank more than expected in the second quarter, aided by increased exports. Advanced Micro Devices fell almost 9.73% after saying on Monday that Chief Financial Officer Thomas Seifert had resigned. RBC Capital Markets cut its overall rating on the semiconductor sector to market weight from overweight due to factors such as order rates slowing down across end markets. The co. cut its ratings on Intel, Texas Instruments, Nvidia and Analog Devices to sector perform from outperform. Intel and Nvidia shares rose slightly, while TI and Analog Devices dipped into the red. In the evening trade Microsoft lost 0.3% after the co. said its board has approved a plan to raise the company’s quarterly dividend by 15% to 23 cents a share. Implied volatility inched lower on modest trading volumes.
