Summary: Stocks slipped into the close in choppy trading action as the market logs its seventh consecutive quarterly gain; eBay shares rally as it plans PayPal spin off; Apple gets China green light. Conway G. Gittens reports.
Volatility is back on Wall Street with stocks bouncing between positive and negative territory throughout the day. By the end of the session, stocks finished with minor losses, led by a drop in the energy sector. Tuesday marks the end of the seventh straight quarter of market gains - with the Nasdaq leading the third quarter with a 1.9 percent rally. But, there's reason to be cautious, says Phoenix Financial Services' Wayne Kaufman. SOUNDBITE: WAYNE KAUFMAN, CHIEF MARKET ANALYST, PHEONIX FINANCIAL SERVICES (ENGLISH) SPEAKING: "There is no doubt, though, that underneath the major indexes we have been seeing a lot of stocks that are in their own bear markets or that have gone below 20%. In the S&P 1500, which I slice and dice in my weekly reports, right now, you've got almost 50% of stocks that are actually below their own 200-day moving average, and more than that are below their own 50-day moving averages. So the major indexes are masking some of the bearishness that has taken place underneath." Carl Icahn is tweeting again, this time to say how happy he is about eBay spinning off PayPal. The planned split of retail operations and digital payments will be completed next year. By the way, a source told Reuters, another activist investor - Daniel Loeb and his Third Point hedge fund - applied additional pressure for a break-up after acquiring a "significant" stake. Shares of eBay touching six-month highs. Alibaba shares up on speculation the Chinese e-commerce company may make a move on eBay after the breakup. It's Apple picking in China! After intense talks with the Chinese government over the access to user data, the iPhone 6 and the larger 6 plus will be in Chinese stores on October 17th. Apple shares only getting a modest bounce on the news. A relatively quiet unveiling at Microsoft. The software giant taking the wraps off Windows 10 - its latest operating system upgrade. Microsoft skipped the number 9 in an attempt to get others to forget how badly the changes to Windows 8 were received by corporations and the public. The company hopes Windows 10 will become the go-to software for seamless use on traditional computing devices and the fast-growing mobile market. Unsteady signs from the economy...Consumer confidence saw its first fall in five months in September, business activity in the Midwest grew at a slower pace last month, and the S&P/Case-Shiller home price index saw softer-than-expected price gains in July. In Europe, the euro wraps up its worst quarter against the dollar in four years. As for stocks, Germany and France were up for the day, but not the U.K.