U.S. stocks fell on Monday, as concerns that fourth-quarter earnings reports, starting with aluminum producer Alcoa after the closing bell, will show further deterioration in the recession-slammed economy according to Reuters. Worries about the possibility of more financial sector losses brought on by the credit crisis added to the negative tone, with shares of Citigroup tumbling over 15 percent, and JPMorgan Chase down nearly 5 percent. Alcoa Inc fell over 7 percent on the New York Stock Exchange after being downgraded to a "sell" by Deutsche Bank ahead of its quarterly results after the closing bell. Investors were showing nervousness as they attempted to discern where any encouraging news will come from as corporate earnings and profit outlooks begin to filter in. "There is caution going into earnings season, and we'll probably have a few more weeks of it," said Frank Lesh, futures analyst and broker at FuturePath Trading LLC in Chicago. "Profits drive the stock market, and we want to see if anybody's got any." Fourth-quarter S&P 500 earnings are expected to decline 15.1 percent from a year earlier, marking the sixth straight quarterly fall, according to Thomson Reuters estimates. The Dow Jones industrial average was down 126.80 points, or 1.47 percent, to 8,472.38. The Standard & Poor's 500 Index fell 19.89 points, or 2.23 percent, to 870.46. The Nasdaq Composite Index shed 33.71 points, or 2.14 percent, to 1,537.88. The fall in Citigroup shares followed news that the embattled U.S. bank is nearing a deal to sell a controlling stake in its Smith Barney retail brokerage business to Morgan Stanley. Financial stocks were among the worst performers on the Dow, as Banc of America tumbled 11 percent to $11.54 after Citigroup lowered its fourth-quarter profit view. JPMorgan fell to $24.80 and Citigroup slumped to $5.75. The S&P Financial index fell 5.4 percent, the fourth straight day of losses for the index and its longest losing streak since the November government bailout of Citi.
