Late Tuesday, rating agency Standard & Poor’s announced downgrades on 37 global banks, by applying its new ratings criteria for banks, which were published earlier this month. The updates in the ratings is part of a major overhaul for scoring creditworthiness, as the credit rating agency received heavy criticism after failing to properly rate mortgage-backed securities in the housing bubble.
Bank of America Corp. (NYSE:BAC) is down more than 1% in late trading, after falling 3.24% during regular market hours. The bank most recently traded near $5. Concerns are mounting that several institutional investors such as State Street (NYSE:STT), BlackRock (NYSE:BLK) and JP Morgan (NYSE:JPM) are forced to liquidate their BofA positions as shares fall below $5.
Morgan Stanley (NYSE:MS), Wells Fargo (NYSE:WFC), and Goldman Sachs (NYSE:GS) also declined by nearly 1% after the closing bell. However, shares of Citigroup (NYSE:C) are down only .40% after the downgrades.
Aside from the bank sector (NYSEARCA:XLF), shares of tech related companies are also attracting attention in late trading. After closing nearly 11% on Tuesday, shares of Corning Inc. (NYSE:GLW) continue to edge .15% lower in extended hours. The company announced it would reduce its worldwide glass capacity by 25% in the fourth quarter. It may also see lower demand for its Gorilla Glass products. Shares of Apple (NASDAQ:AAPL) are also trading lower on the news.
Despite a bright outlook, shares of Cisco (NASDAQ:CSCO) closed nearly 2% lower on Tuesday. Public Internet traffic is on the rise and so is the traffic inside the data centers where the web content originates. Cisco’s Visual Networking Index sees traffic quadrupling by 2015 as they dominate the the overall market for data center networking gear. For the first time, Asia will also generate more traffic than North America, although America still beats China.
Big name IPOs continue to struggle. Shares of Angie’s List Inc. (NASDAQ:ANGI) fell more than 9% on Tuesday, and continue to head below its IPO price after the closing bell. Other stocks trading below their IPO price include Groupon (NASDAQ:GRPN) and LinkedIn (NYSE:LNKD).