The NYSE composite dropped 2.8%, the S&P 500 2.3%, the Nasdaq 2% and the Dow 1.9%. The Philadelphia semiconductor index plunged 3.5%. Volume was higher on both major exchanges.

Of IBD's 197 industry groups, only three rose on the day: Office supplies manufacturers, gold miners and medical/dental supplies notched modest gains.

The negative action slapped all four major indexes with a distribution day. The NYSE composite has seven distribution days, the most of the indexes. The Nasdaq has the fewest, with three.

When Goldman Sachs getting grilled on Capitol Hill is low on the list of investor's concerns, you know it was a rough session. [Read the full article]

IBM (IBM) will raise its quarterly dividend by 18% to 65 cents a share , good for a 2% annualized yield.

In addition, IBM said at its shareholder meeting that it plans to buy back $8 billion worth of stock. The buyback is on top of its remaining $2 billion repurchasing plan it announced in March.

Investors generally regard stock buybacks favorably because they indicate that a company believes in its own stock. In addition, buybacks can reduce the supply of shares in the market, another potential positive factor for the stock.

IBM's announcement comes as the tech sector's major companies have shown life once again. [Read the full article]

Several sector leaders showed some resilience Tuesday, as the major indexes pulled back sharply in higher volume. The sector leaders that held up relatively well included Lululemon Athletica (LULU), Intuitive Surgical (ISRG) and Priceline (PCLN). A few others suffered serious declines. Yoga-inspired clothing retailer Lululemon retreated 0.76, or 2%, to 42.26 in below-average volume. The stock now ... [Read the full article]

Beijing and Athens combined to make for a bad day for Chinese stocks Tuesday — first in China, then in the U.S.

Beijing, once intent on boosting China's economy with easy money and stimulus spending, now is making a painful U-turn. Interest rates are rising, lending standards are harder to meet and bank credit has been stunted.

Authorities insist that inflation and asset bubbles must be squelched. Investors fear the cure may be worse than the disease.

So, when bond-rating agency Standard & Poor's cut Greece's sovereign debt to junk status, a bad day got worse. S&P also lowered its rating for Portugal's debt. [Read the full article]