Stocks on Wall Street retreated as early earnings reports fell shy of investors' high expectations.The selling has been broad-based, although the declines in major indexes were modest.The Dow Jones Industrial Average closed down 36.73 points, or 0.3%, at
Stocks on Wall Street retreated as early earnings reports fell shy of investors' high expectations.
The selling has been broad-based, although the declines in major indexes were modest.
The Dow Jones Industrial Average closed down 36.73 points, or 0.3%, at 10,627.26, hurt by a 11% plunge in component Alcoa after its weaker-than-expected fourth-quarter report.
Alcoa posted a $US277 million loss with lower sales in its construction, aerospace, commercial-building and gas-turbine markets.
Analysts are expecting earnings for the companies in the S&P 500 index to more than double compared with 2008's year-end period.
The S&P declined 0.9% to 1136.22. Its energy and materials sectors dragged as the price of crude oil, which had topped $US83 a barrel on Monday, reversed course and fell to less than $US82 per barrel. The only sector in the S&P 500 posting a gain was consumer staples.
The tech-driven Nasdaq Composite Index was down 1.3% to 2282.31.
European stocks fell on a combination of more problems in Greece, weak US corporate earnings and China's move to curb bank lending.
In Greece, a weak government bond auction added to rising concern about the nation's economic and fiscal prospects. Its deficit may be even higher than the forecast 12.7% of gross domestic product.
Greek bank shares slid, with Piraeus Bank down 8.1% and the National Bank of Greece dropping 6.3% in Athens. The Greek ASE Composite Index fell 5% to 2199.53.
In China, the People's Bank raised bank reserve requirements for the first time since November 2008, prompting a fall in miners and industrial commodities.
The pan-European Stoxx 600 Index closed down 0.9% tat 256.38. The UK's FTSE 100 Index fell 0.7% to 5498.71, France's CAC-40 Index ended 1.1% lower at 4000.05 and Germany's DAX fell 1.6% to 5943.00.
Commodities: oil down, gold up
Crude futures fell as warmer weather and shaky corporate earnings dimmed prospects for future oil demand.
Light, sweet crude for February delivery traded $US1.37, or 1.7%, lower at $US81.15 a barrel in New York. Brent crude on the ICE futures exchange traded $US1.35 lower at $US79.62 a barrel.
Gold futures are recovering from early weakness when the US dollar went on the defensive as the market focused less on the China banking moves and more on worries about the still-soft US economy.
Lightly traded January gold was up $US1.80 to $US1152.50 an ounce in New York, while most-active February contract was up 60USc at $US1152.
Currencies: Dollar down, yen up
The US dollar was sharply lower against the yen as falling US Treasury yields support the Japanese currency.
The dollar was higher against other major currencies as it benefits from the monetary tightening in China and the sharemarket's weakness.
The dollar's gains against the euro were trimmed in late-morning trading in response to the greenback's slump against the yen.
The euro was at $US1.4496, down from $US1.4524 at the Monday close. The dollar was at ¥90.88 from ¥92.06, while the euro was at ¥131.74 from ¥133.78.
The UK pound was at $US1.6170, up from $US1.6112.
