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

Stocks Slump on Earnings, Eurozone Jitters

NEW YORK ( TheStreet) -- The benchmark U.S. stock indices retreated Monday amid nervousness about second-quarter reporting season and rising Spanish bond yields.

The Dow Jones Industrial Average closed down 36 points, or 0.28%, at 12,736. The blue-chip index, which has now fallen in three straight sessions, did catch a slight bounce toward the end of session to finish roughly 50 points above the day's low of 12,686.

The S&P 500 dipped 2 points, or 0.16%, to finish at 1352, and the Nasdaq shed nearly 6 points, or 0.19%, to settle at 2931.

Within the Dow, 15 of 30 components moved lower, led by Bank of America (BAC), du Pont (DD), Exxon (XOM) and Caterpillar (CAT).

Blue-chip gainers included Merck (MRK), Verizon (VZ) and Wal-Mart Stores (WMT).

Shares of Boeing were also among the index's winners after Air Lease (AL) placed an order valued at $7.2 billion for 60 of the company's 737 MAX 8 and 15 737 MAX 9 airplanes. Boeing's stock rose 0.5% on the day.

The weakest sectors in the broad market were energy, consumer cyclicals and basic materials. Conglomerates and health care recorded gains.

Overall, expectations for second-quarter earnings are muted. According to data from Thomson Reuters, analysts are expecting year-over-year growth of 5.8% from the S&P 500. However, the financials are benefiting from an easy comparison to last year because of the Bank of America (BAC) mortgage lawsuit settlement. Excluding Bank of America, second-quarter growth is estimated to be just 0.7%. Excluding the entire financials sector, earnings are estimated to dip 0.3% year-over-year.

"It looks like the analyst community has been lowering expectations for the near quarters but leaving the fourth quarter intact as far as higher growth to keep full-year numbers where they want them," said Brian Lazorishak, portfolio manager and quantitative analyst at Chase Investment Council. "This is the time of year when you need to start reining in those fourth-quarter expectations."

"Even if you get good news at times, the stronger dollar is having a reverse effect on equities," added Peter Cardillo, chief market economist at Rockwell Global Capital. "Generally speaking, [earnings is] going to be much weaker than what we've been expecting. The market has already prepared itself for that. I think it will be a nervous earnings season. But it won't be one where we'll see negative earnings for all the sectors."
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
AA $10.96 -1.88%
AMD $3.74 5.35%
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs