Stocks finished off the lows of the day but remained lower for the day heading into this weeks first earnings releases. So far 63 out of 103 companies have lowered their earnings projections for the quarter, signaling extreme bearishness heading into the earning season. Traditionally when the market is as bearish as it is now markets actually see a 2% gain due to the over pessimistic nature.
Aluminum producer Alcoa (AA) released earnings after the bell and income came in as expected at 6 cents per share. This is a good, but not great, sign for markets and the health of the economy.
Spanish 10-year bond yields crept back above 7% which puts the country in the “danger zone.”
China’s annual inflation rate fell to 2.2% leaving the door open for the government to do further economic stimulus and an easing policy for the central bank.
The DOW (INDU) fell 36 points at 0.3%. The S&P 500 (SPX) dropped 2 points at 0.2%. The Nasdaq (COMP) fell 6 points at 0.2%.
Oil gained $1.54 to close at $85.99 a barrel.
Gold rose $10.20 to close at $1,589.10 an ounce.
The 10-Year Note rose pushing the yield down to 1.53%.