NEW YORK ( TheStreet) -- Another earnings season will kick off Tuesday as unofficial frontrunner Alcoa ( AA) reports its results. Though expectations are for a better quarter than the last, U.S. benchmark indices tumbled after a record-breaking run to close out last week. Shares had rallied before the July 4 long weekend in response to stronger-than-expected jobs data and a lower unemployment rate.
The Dow Jones Industrial Average closed 0.26% lower to 17,024.21, remaining just above the psychologically important 17,000 milestone set on Thursday. The S&P 500 slid 0.39% to 1,977.65 and the Nasdaq dropped 0.77% to 4,451.53.
S&P Capital IQ consensus estimates point to a second-quarter 2014 earnings increase of 6.6%, nearly twice the 3.4% year-over-year gain a quarter earlier. Seven of the 10 sectors in the S&P 500 are forecast to show second-quarter growth rates that exceed first-quarter gains, with the biggest sequential increases coming from the energy and materials sectors.
"Expectations were for negative growth year over year for the first quarter and we pulled one out with 2.1% growth. That's a testament to companies' ability to do business even in a horrible economic backdrop," Voya Investment Management senior market strategist Karyn Cavanaugh told TheStreet.