MARKET SNAPSHOT: U.S. Stocks Move Lower Ahead Of Alcoa's Earnings
January 12 2009 - 1:09PM
Dow Jones News
By Kate Gibson
U.S. stocks fell Monday, with the Dow Jones Industrial Average
extending its losing streak into a fourth straight session, with
investors leery ahead of Alcoa Inc.'s results in what could mark
the unofficial start of a particularly grim earnings season.
Energy, financials and materials led the broad market
declines.
The Dow Jones Industrial Average (DJI) fell 87.77 points to
8,511.44, with 23 of its 30 components trading lower.
Weighing the most on the blue-chip index, Citigroup Inc. (C)
shares fell 12% with the banking powerhouse reportedly near a deal
to combine its brokerage business with Morgan Stanley (MS). Shares
of Morgan Stanley (MS) led all S&P 500 financial stock gainers,
climbing 1.2%.
Another Dow laggard, Alcoa (AA) shares declined 6.9% after its
downgrade by Deutsche Bank to a sell from a hold in the wake of
last week's announced cuts in production and employees by the
aluminum giant.
Alcoa reports its earnings after the market closes, with
analysts expecting the company to report a loss of 10 cents a
share.
Intel Corp.(INTC) reports its results on Thursday, with the chip
maker and Wal-Mart Stores Inc. (WMT) among the companies offering
bleak forecasts last week.
Shares of technology company Palm Inc. (PALM) gained 4.5% after
its upgrade to hold by Citibank. .
The S&P 500 (SPX) fell 15.43 points to 874.92, and the
Nasdaq Composite (RIXF) declined 26.15 points to 1,545.44.
Volume on the New York Stock Exchange topped 578 million, and
decliners outpaced advancers more than 2 to 1. On the Nasdaq, 350
million shares traded, and decliners routed advancers almost 2 to
1.
Oil futures tumbled 6% below $40 a barrel as the global economic
downturn continued to fuel worries about demand. Crude for February
delivery were most recently off $2.93 to $37.94 a barrel on the New
York Mercantile Exchange. .
Gold futures fell to near one-month lows, pacing sharp losses in
crude oil and other commodities. Gold for February delivery was
last down $33.1 at $821.9 an ounce.
Overseas, stocks in Europe declined for a fourth straight
session, as worries over the global economy sent oil-sector
companies lower. .
Asian shares also fell amid weakness among steelmakers and
miners.
On Friday, stocks fell for a third consecutive day after the
government reported the nation's unemployment rate climbed to 7.2%
in December from 6.8% the prior month.
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