Updated from 4:31 p.m. EDT
Stocks in New York lost ground for a second session Tuesday as investors braced for the start of earnings season.
Dow Jones Industrial Average
lost 186.29 points, or 2.3% to 7789.56, and the
was down 19.93 points, or 2.4%, at 815.55. The
shed 45.10 points, or 2.8%, to 1561.61.
declined 5.9%, and
was off by 4.8%.
fared the worst, tumbling 11.9% to $2.
Comments from two prominent investors, George Soros and Marc Faber, that the market could see a pullback in the near term also weighed on the mood.
was marking the start of earnings season with its first-quarter release after the close. The company reported a loss of 59 cents a share, about 3 cents worse than the estimate of analysts surveyed by Thomson Reuters. Shares declined 1.5% in the regular session.
Before that report, a unit of
said that at current prices, 70% of the industry was operating at a financial loss. The company is
in response to lagging demand in alumina and aluminum. Rio Tinto shares declined 4.6% to $126.67.
More broadly, this quarter will likely mark the
the S&P 500 has recorded negative growth. That would be the longest negative era since Thomson Reuters began tracking the data in 1998.
"Expectations are very low, and nobody expects the first-quarter earnings to be good. Companies were very, very conservative in their expectations," says Marc Pado, U.S. market strategist Cantor Fitzgerald. One potential positive is that only a few warnings have come out recently, and that could mean things are going to be relatively in line with expectations, he says. "That's the best we can hope for."
The economic data has already told the bleak story of the first quarter, so outlooks are more important at this point, he says.
On that note,
issued new sales and earnings guidance. Emerson reined in its 2009 profit and sales expectations, saying the top line will likely decrease 9% to 11% year over year because of declining demand and customer inventory reductions. Shares were flat at $30.89.
On Wednesday, the
will release more details on the state of the economy with the
of its March meeting. Also, the
Securities and Exchange Commission
is expected to discuss proposals related to the reinstitution of the
Back in corporate news, several bidders are considering
American International Group's
The Wall Street Journal
reported. The interested parties, fully aware that the insurance giant is scrambling to pay back some of the $170 billion it borrowed from taxpayers, are bidding well below the ordinary worth of the assets, the report says.
Meanwhile, Richard Parsons, the new chairman of
, which has received billions in taxpayer aid, said he feels the financial institutions have been
while "everybody, in reality, has some part of the blame."
on the sticky topic of Wall Street bonuses, saying that while the system needs modification, "to demonize the bankers alone for creating this financial meltdown is both inaccurate and shortsighted."
AIG shares were off by 4.6% at $1.05, while Citi ticked up 1.5% to $2.76.
Checking in on commodities, oil fell $1.90 to settle at $49.15 a barrel. Gold rose $10.50 to $883.30 an ounce.
Longer-dated Treasuries were rising. The 10-year was up 6/32 to yield 2.9%, and the 30-year was adding 7/32 and yielding 3.7%. The dollar was recently stronger against the yen, but weaker vs. the pound and euro.
In Europe, London's FTSE 100 and Frankfurt's Dax lost 1.6% and 0.6%, respectively. Stocks in Asia were modestly weaker, with the Nikkei 225 losing 0.3% and the Hang Seng in Hong Kong down 0.5%.
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