This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: Stocks Start Week With Deep Swoon

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 - Get Report). 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.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMAT $20.47 0.00%
BA $134.80 0.00%
MDT $79.15 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs