Stock averages end down 2%, at or near the bottom of the day's trading range.
Stocks were in a steady decline throughout Tuesday's session as investors await the first wave of corporate earnings results for the latest period to see if evidence of the slowing recession is reflected in the numbers and guidance.
A second fiscal stimulus package under consideration by the Obama administration underscored worries about the recovery. With unemployment showing no signs of abating, the Obama administration's economic advisory panel could possibly add a second round of stimulus funds to prop up the economy.
In the meantime, all eyes will be on the earnings season this week with Alcoa (AA) set to release its quarterly results and kick off the flood of reports. AA is the first member of the Dow to report and is expected to post a third consecutive quarterly loss on Wednesday.
The market's overall negative tone proved too much for the tech space, which should have been cheered by an analyst upgrade to several chip names, including Intel (
INTC) and Marvel (
MRVL).
Financials were mixed. Keefe Bruyette upgraded KeyCorp (
KEY) to "outperform" this morning, according to reports.
Energy stocks fell for the third straight day. Oil futures ended below $63 a barrel on Tuesday, extending their recent decline on economic worries.
A new estimate from Merrill Lynch pegged oil prices at $82 a barrel by the fourth quarter of 2010. Merrill cited limited growth in non-OPEC supply, a shrinkage of OPEC spare capacity, emerging-market demand and more dollars in circulation. But the price report did little to boost futures trading today.
NYSE down 115.4 (2%) to 5,654.64.
-DJIA down 161.3 (1.9%) to 8,164.
-S&P 500 down 17.7 (2%) to 881.02.
-Nasdaq down 41.2 (2.3%) to 1,746.
GLOBAL SENTIMENT
Hang Seng down 0.65%
Nikkei down 0.34%
FTSE up 0.08%
UPSIDE MOVERS
(+) INTC gets upgrade amid broader chip sector ratings change.
(+) MRVL among those getting upgrade.
(+) GY reports EPS that top year-ago quarter.
(+) TEVA halts shipments of generic ortho Tri-Cyclen.
(+) KEY gets analyst upgrade.
(+) APC gets upgrade.
(+) BRCD gets price target hike.
(+) PSMT reports June same-store sales up 1.4%.
DOWNSIDE MOVERS
(-) HNSN continues evening slide that followed revenue miss.
(-) DFS continues downside action after share sale.
(-) AIG down as Superior Offshore founder reportedly asks judge permission to sue over bad loan.
