US STOCKS-Wall St falls as momentum shares sink again
* Tesla and Netflix slide; social media, biotech stocks drop
* Empire State manufacturing index misses forecast; CPI edges up
* Dow down 0.4 pct; S&P 500 off 0.5 pct; Nasdaq down 1.6 pct (Updates to midday)
By Chuck Mikolajczak
NEW YORK, April 15 (Reuters) - U.S. stocks fell on Tuesday as early gains evaporated when momentum shares once again lost ground, overshadowing a jump in Coca-Cola and Johnson & Johnson after their quarterly earnings.
The Nasdaq slid more than 1 percent, weighed down by another downturn in momentum names. In recent weeks, momentum names - stocks seen by investors as having high growth potential - have been under pressure after a meteoric rise in their prices took valuations to levels that appeared to be unsustainable.
Tesla Motors Inc fell 5.5 percent to $187.25 and NetFlix Inc dropped 4.5 percent to $316.82 to rank among the worst performers in the Nasdaq 100 index.
The Global X Social Media index, whose components include Facebook, LinkedIn and Yelp, fell 2.7 percent. The exchange-traded fund, designed to measure the performance of companies in the social media industry, has dropped nearly 22 percent since the end of February. The Nasdaq Biotech index dropped 2.8 percent. The index, whose components include Alexion Pharmaceuticals and Biogen Idex, has lost more than 20 percent over the past six weeks. Those losses put both indexes in bear market territory, which Wall Street defines as a drop of 20 percent from a peak.
"They reached a level where the pricing was absurd in terms of the valuation of these companies, and for whatever reason, the market has woken up to the fact and is now correcting to get them back down to a reasonable valuation," said Stephen Massocca, managing director of Wedbush Equity Management LLC in San Francisco. Continuación...