Stocks Continue to Decline as New Earnings Season Begins
Posted on January 08, 2013 at 15:20 PM EST
Tuesday’s trading brought continued stock declines in anticipation of a new corporate earnings season set to begin at the closing bell. The major American stock indices continued to decline on Tuesday as anxiety levels increased with the new quarterly earnings season set to begin at the closing bell. Alcoa (NYSEARCA:AA) will be the first corporation to release its quarterly report. As of 2:15 EST, the Dow Jones Industrial Average declined 61 points (0.46 percent) to 13,322. The S&P 500 Index fell 0.40 percent to 1,455 (NYSEARCA:SPY). As the chart (at left) indicates, the S&P 500 continues to struggle at its previous resistance level – its September 14 high of 1,465. Its Relative Strength Index has declined to 59.59 (Chart courtesy of Stockcharts.com ). The Nasdaq Composite dropped 0.32 percent to 3,088 (NASDAQ:QQQ). The Russell 2000 Index declined 0.22 percent to 873 (NYSEARCA:IWM). Earnings Season Begins The “Dollar Bull” Index ETF (NYSEARCA:UUP) advanced 4 cents (0.18 percent) to 21.96 as of 2:06 EST. As of 1:56 EST, the S&P 500 Volatility Index – or VIX – advanced 1.02 percent to 13.93 although the VIX Short-Term Futures ETN declined 0.98 percent to 27.25 (NYSEARCA:VXX). The Euro STOXX 50 Index finished Tuesday’s session with a 0.15 percent decline to 2,691 – staying well above its 50-day moving average of 2,573. The STOXX 50 is holding above its March 19 high of 2,608 and its Relative Strength Index dropped to a healthy 65.99 (NYSEARCA:FEZ). The FTSE 100 Index dipped 0.18 percent to 6,053 NYSEARCA:EWU). The German DAX Index fell 0.48 percent to 7,695 (NYSEARCA:EWG). France’s CAC 40 Index crept upward by 0.03 percent to 3,705 (NYSEARCA:EWQ). Spain’s IBEX 35 Index rose 0.40 percent to 8,453 (NYSEARCA:EWP). Italy’s FTSE MIB Index climbed 0.33 percent to 16,951 (NYSEARCA:EWI). As of 2:01 EST, the euro declined 0.26 percent against the dollar, trading at $1.3082 (NYSEARCA:FXE). On London’s ICE Futures Europe Exchange, March futures for Brent crude oil advanced by 52 cents (0.47 percent) to $110.94/bbl. (NYSEARCA:BNO, NYSEARCA:USO). Oil Service Stocks Hit an Oil Slick February Gold futures advanced by $15.50 (0.94 percent) to $1,662.10 per ounce (NYSEARCA:GLD). Golden Mining Opportunities in West Africa ETF Summary: SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) -0.46% as investors get cold feet with quarterly earnings season set to begin at the closing bell. SPDR EURO STOXX 50 ETF (NYSEARCA: FEZ ) -0.32% following the report of increasing unemployment in the Eurozone. Financial Select Sector SPDR ETF (NYSEARCA:XLF) -0.53% following the resolution of the foreclosure abuse lawsuit brought against ten mortgage servicers by the Office of the Comptroller of the Currency and the Federal Reserve. iShares Barclays 20+ Year Treasury Bond Fund (NYSEARCA:TLT) +0.48% as declining stock prices reduce investors’ appetite for risk, making the safe haven of government bonds more attractive. Learn More About iShares ETFs . SPDR S&P 500 INDEX ETF (NYSEARCA:SPY) -0.40% as anxiety concerning quarterly earnings reports reduces investor enthusiasm. Bottom line: Investors remained in a “risk off” mode on Tuesday with a new quarterly earnings season beginning after the closing bell. Sign up for Wall Street Sector Selector’s FREE Stock Market Timing Indicator! Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.