- The Washington Times - Tuesday, April 7, 2009

UPDATED:

Wall Street posted losses Tuesday afternoon for second straight day, ahead of corporate earning reports and cooling a record four-week rally.

The Dow Jones Industrial Average was down 163.59 points, to 7,812.26, at midday trading. The Standard and Poor’s 500-stocks Index was at 821.23, down 14.25 points, and the NASDAQ was down 30.29 points, to 1,576.42.

Analysts attributed the selling to investors taking profits from the March gains. The Dow opened Monday on its best four-week run since 1933 and above the 8,000 mark for the first time since early February. Major stock indexes are up more than 20 percent from 12-year lows in early March.

The report by Alcoa, a major U.S. aluminum manufacturer, will be the first component in the Dow Jones Industrial Average to post first-quarter earnings. Analysts expect losses but are optimistic they will not be higher than anticipated and begin a downward trend for markets. The report is expected to be released after U.S. markets close at 4 p.m. EDT.

Analysts expect losses but are optimistic they will not be higher than anticipated and start a downward trend for markets.

They also are concerned about earnings reports by banks that will start being released next week.

The markets, which will be closed Good Friday, opened Tuesday following losses in overseas markets and stock futures.

Dow futures dropped 95 points, to 7,821. S & P futures were at 818.20, down 12.20 points, and NASDAQ futures dropped 18.25 points, to 1,293.75.

In overseas trading, Britain’s FTSE 100 was at 3,929.06, down 64.48 points. Germany’s DAX was down 46.92 points, to 4,302.89, and France’s CAC 40 was at 2,890.43, down 39.32 points.

U.S. markets have made gains in recent weeks, amid upbeat economic reports, including a National Association of Realtors report that stated pending home sales rebounded in February from a record low, signaling the worst of the global recession might be over.

The Dow opened Monday on its best four-week run since 1933 and above the 8,000 mark for the first time since early February. And major stock indexes are up more than 20 percent from 12-year lows in early March.

However, the Dow closed Monday at 7,975.85, down 41.74, ending a four-day run amid concerns about the earnings reports and disappointment over IBM Corp.’s $7 billion deal to buy Sun Microsystems Inc. stalling. The Standard & Poor’s 500-stocks Index dropped 7.02 points to closed Monday at 835.48, and the NASDAQ closed at 1,606.71, down 15.16 points.

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