Advanced Micro Devices slumped after the company cut its second-quarter revenue outlook late Monday, citing weaker-than-expected business conditions in China and Europe. Also weighing on tech stocks was Applied Materials own after the firm lowered its full-year guidance to reflect weaker-than-expected demand in its semiconductor business.

Alcoa was the Dow’s biggest decliner after industrial metals producer posted an earnings loss late Monday amid slumping aluminum prices. Alcoa’s report, the first by a blue-chip company, unofficially kicks off earnings season.’

In economic news, the National Federation of Independent Business’s small-business optimism index fell in June to its lowest reading since October, missing expectations. 

Finally, JC Penny (JCP) fell -5.81% after analysts of Credit Suisse said second quarter sales are looking worse than the 20% drop posted in the first quarter. The department store retailer cut 350 jobs on top of the 600 employees they laid off in April.