NEW YORK (TheStreet) -- The major equity indexes dug a big hole for themselves on Monday if they're going to break their streak of three straight weeks of declines as renewed eurozone debt worries fueled a deep sell-off.
The Dow Jones Industrial Average posted a triple-digit loss to finish at its lowest level since April 19. The blue-chip index has now fallen in five of the past seven sessions, and its year-to-date gain sits at 7% with May's trading responsible for a 3.4% pullback from 2011 highs in late April.
First-quarter earnings season is enduring a semi-shaky ending. According to data from Thomson Reuters, 68% of the 475 companies in the S&P 500 that had reported their quarterly results as of May 20 beat the average analysts' view. That's above the long-term percentage of 62% since 1994, but below 74% average the market has seen in the past four quarters.
In addition, the aggregate beat sits at 6% for the first quarter, which is again above a long-term average of 2%, but below the 9% pace set in the past year.Tuesday's calendar features four S&P 500 components led by semiconductor capital equipment giant Applied Materials (AMAT). Applied Materials has topped the consensus profit view in four straight quarters and the average estimate of analysts polled by Thomson Reuters is for earnings of 37 cents a share in the company's fiscal second quarter ended in April on revenue of $2.77 billion. Wall Street has some skepticism about the stock ahead of the report with 13 of the 21 analysts covering the shares at either hold (11) or underperform (2) with the 12-month median price target sitting at $17. The stock is flat since the start of 2011, and has pulled back 19% since hitting a 52-week high of $16.93 on March 3. Of course, the numbers, which are due after the closing bell, may end up being so much noise as Applied Materials will likely provide more color on its May 4 agreement to acquire Varian Semiconductor (VSEA), a $4.9 billion deal that got decent reviews when it was announced but the shares since seen a decline.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV