By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) --U.S. stocks continued their retreat
from records Tuesday, with the Dow Jones Industrial Average
undercutting 17,000 after breaking through that milestone level on
Thursday.
Earnings season will get its unofficial kickoff after the
market's close, as Alcoa Inc. releases its second-quarter results.
Tuesday is expected to be light on top-tier economic releases,
although job openings data and two Federal Reserve speakers are on
tap.
The Dow Jones Industrial Average(DJI) dropped 51 points, or
0.3%, 16,973, while the S&P 500(SPX) shed 5 points, or 0.3%, to
1,972. The Nasdaq Composite(RIXF) lost 8 points, or 0.2%, to
4,443.
On Monday, equities pulled back from record closes achieved at
the end of last week, with the Dow industrials (DJI) finishing down
0.3% but holding above 17,024.21.
Before Tuesday's open, a small-business optimism index showed a
June dip amid a big fall in those who expect the economy to
improve. Fresh figures for job openings are coming at 10 a.m.
Eastern, and a consumer-credit report is due at 3 p.m. (Read more:
Two of Yellen's favorite jobs indicators are coming Tuesday
http://blogs.marketwatch.com/capitolreport/2014/07/07/two-of-yellens-favorite-jobs-indicators-are-coming-tuesday/?link=instory.)
Mixed in with the data, Richmond Federal Reserve President
Jeffrey Lacker will speak at 1 p.m. Eastern and Minneapolis Fed
President Narayana Kocherlakota at 1:45 p.m.
After the close, Alcoa (AA) is forecast to report per-share
earnings of 12 cents on revenue of $5.61 billion for the second
quarter. Shares were up 0.4%. Check out: What to watch for in Alcoa
earnings
Expectations for second-quarter earnings have been "dialed down,
so it should be easy for the corporates to impress, although the
big figure many will be watching now is whether the Dow can indeed
hold on to that 17,000 level," said Joao Monteiro, analyst at
Valutrades, in a note.
Among individual stocks, Groupon Inc.(GRPN) jumped 5% after B.
Riley upgraded the daily-deals site to buy, while Delta Air Lines
Inc.(DAL) was lower again, sliding 3.5%, after dropping sharply in
two of the past three sessions. (Read more in the Movers &
Shakers column
http://www.marketwatch.com/story/alcoa-allergan-and-petsmart-are-stocks-to-watch-2014-07-07.)
In other markets, the Nikkei 225 index closed down 0.4%, though
the rest of Asia largely held steady. The Stoxx Europe 600 pulled
back after weak German trade data supported the view that economic
activity in the country is slowing.
Gold prices (GCQ4) pushed higher, while crude oil also gained.
The British pound (GBPUSD)slipped on unexpectedly weak U.K. factory
data.
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