Stocks fell as investors gear up for the unofficial start of Q3 earnings season and the International Monetary Fund cut global growth outlooks. ECB President Mario Draghi testified before the European Parliament about Europe's debt problems, saying eurozone interest rates are as low as they need to be, and reiterating that the central bank was ready to start its new sovereign bond purchase program. Bank of America and Wells Fargo fell 0.75% and 1.96% respectively after U.S. Attorney for the Southern District of New York sued Wells Fargo, alleging the bank acted recklessly issued mortgages, worsening the collapse in the housing market. Tech stocks fell sharply on sell-off in Intel. Intel fell 2.7%, hitting a new 52-week low, after Bernstein Research cut its rating to underperform from market perform, citing risks of lower average selling prices in 2013 amid worries about a slowing PC market. Netflix fell 10.9% after Bank of America cut its rating to underperform from buy on valuation and concerns about the company’s domestic and international streaming businesses. Apple gave up 0.36% after Nomura Equity Research initiated coverage of Apple with a neutral rating, citing potentially slower growth in 2014. Alcoa gained 0.3% in the evening trade as the co.’s adjusted earnings outpaced Wall Street’s projections. Also, Yum gained 4% after the operator of Taco Bell, KFC and Pizza Hut boosted its full-year, per-share target to a growth rate of at least 13%, or $3.24 a share. Implied volatility jumped higher on massive trading.
