Dow Takes a Step Back

On the New York Stock Exchange, 2.99 billion shares changed hands, and decliners topped advancers by a 6-to-5 margin. Volume on the Nasdaq reached 1.95 billion shares, with losers edging out winners nearly 8 to 7.

The quarterly numbers from Alcoa, which came after the prior close, marked the unofficial start of earnings season. The pace of reports will pick up dramatically next week.

Another company with profit news was International Paper (IP Quote), who disappointed investors with word that lower-than-expected land sales would hit its results. International Paper slid 2.4% to close at $36.18.

Other notables with reports included retailer Costco Wholesale (COST Quote), Host Hotels & Resorts (HST Quote) and agricultural company Monsanto (MON Quote).

Costco posted a fiscal fourth-quarter profit of $372.4 million, or 83 cents a share. Excluding a charge, the company reported earnings per share of 91 cents a share, topping estimates. However, quarterly revenue fell short of forecasts. Still, Costco soared $5.82, or 9.2%, to $69.13.

Monsanto reported a widening fiscal fourth-quarter loss of $210 million, or 39 cents a share. Excluding items, Monsanto lost 18 cents a share, a penny more than analysts expected. The company also guided below the Wall Street consensus for fiscal 2008, and shares were off 74 cents, or 0.8%, to $88.78.

On the other hand, Host Hotels beat the consensus for the top and bottom lines, and the stock rose 29 cents, or 1.3%, to $23.40.