MarketView for October 2

Summary

Wall Street ended little changed in a volatile session on Tuesday as uncertainty over when Spain might apply for a bailout shackled a market struggling to build on gains that took the S&P 500 to its highest in nearly five years. The market also felt the effects of continuing concerns with regard to the upcoming reporting period that kicks into full gear next week. As a result, the Dow Jones Industrial Average was pressured by stocks closely tied to the pace of growth, including Caterpillar and. A major headwind for the economy has been declining demand from Europe, which has been drifting toward recession.

Spanish Prime Minister Mariano Rajoy said a request for European aid was not imminent following a report the country could apply for help soon. Germany has signaled that Madrid should hold off on making its request, according to European officials on Monday. However, if Madrid were to seek a rescue, it would trigger European Central Bank buying of its bonds and help to ease nervousness over the potential impact of the euro zone's debt crisis on our economy.

Meanwhile, the S&P500 index was up nearly 6 percent during the third quarter, lifted by accommodative moves by the Federal Reserve and European Central Bank, which market participants bet would boost flagging growth.

Weaker-than-expected results from Mosaic added to worries about the upcoming third-quarter earnings period. Mosaic shares fell 3.9 percent to $55.76. Vanguard Group, the largest U.S. mutual fund manager, said it was switching 22 of its biggest index funds away from benchmarks provided by MSCI in order to cut costs.

Shares of Chipotle Mexican Grill took a nosedive when hedge fund manager David Einhorn said the restaurant chain will face significant competition and additional costs, making it an attractive "short." The stock fell 4.2 percent to $302.96. In a presentation at the annual Value Investing Congress in New York, Einhorn highlighted some stocks he expects will rise, for example General Motors. GM ended the day up 2.6 percent to close at $23.68.

The auto industry reported September sales on Tuesday. General Motors and Chrysler chalked up gains while Ford remained flat. GM, the largest U.S. automaker, reported a 1.5 percent increase, while Ford reported sales on par with its results from a year earlier. Chrysler showed a 12 percent jump in sales.

PetSmart chalked up a gain of 1.5 percent to $68.55 after S&P Dow Jones Indices said after Monday's close the company will replace Sunoco in the S&P 500 on October 4.