NEW YORK, Jan. 12 (Xinhua) -- U.S. stocks retreated Tuesday, with S&P falling for the first time in 2010, as disappointing Alcoa fourth-quarter results and rising U.S. trade deficit cooled optimism for a strong earnings season and a sustainable economic recovery.
U.S. stocks were broadly lower, with energy, retail and semiconductor sectors taking the lead.
Dow industrials component and the world's largest aluminum producer Alcoa slumped more than 11 percent, the most since March, as the company posted a quarterly net loss of 277 million U.S. dollars, worse than market expectation.
Main averages were also under pressure after the Commerce Department reported the U.S. trade deficit widened more than expected in November. According to the report, U.S. deficit in international trade of goods and services expanded 9.7 percent to 36.40 billion dollars from a revised 33.2 billion dollars in October.
Global markets took a hit after China's central bank said Tuesday it will raise the reserve requirement ratio by 0.5 percentage point, in an attempt to cool the world's fastest-growing major economy.
Crude tumbled the most in five weeks on concern demand from China, the world's second-largest oil consuming country, will wane as the government moves to curb lending. Benchmark crude for February delivery fell 1.73 dollars to settle at 80.79 dollars a barrel on the New York Mercantile Exchange. It's the first time this year a barrel has closed below 81 dollars a barrel.
Chevron, the second largest U.S. oil company fell 1 percent and pressured fellow Dow oil component Exxon Mobil as the company warned late Monday that sharply lower fourth-quarter refining earnings would drag down its fourth-quarter results.
At Tuesday's close, the Dow Jones lost 36.73, or 0.34 percent, to 10,627.26. Broader indexes also ended in negative territory. The Standard & Poor's 500 index fell 10.76, or 0.94 percent, to 1,136.22 and the Nasdaq dropped 30.10, or 1.30 percent, to 2,282.31.
Dollar mixed against most major currencies
NEW YORK, Jan. 12 (Xinhua) -- The dollar was mixed against most major currencies on Tuesday amid widened U.S. trade gap, worse-than-expected quarterly results of a major company, and a tightening move by the Chinese central bank.
U.S. trade deficit jumped 9.7 percent to 36.4 billion U.S. dollars in November, the Commerce Department reported. Exports rose 0.9 percent and imports rose 2.6 percent. Two-thirds of the increase in the deficit was due to a wider petroleum deficit as oil prices rose. Full story
Crude prices fall as warmer weather to cut demand
NEW YORK, Jan. 12 (Xinhua) -- Crude prices fell on Tuesday as investors expected that warmer weather would cut fuel demand.
According to weather forecasts, the very cold weather across the central and eastern United States will come to an end during the next several days. Investors expected the milder weather may cut heating oil demand. Full story
Gold slumps ahead of floor trading closing on weak oil
CHICAGO, Jan. 12 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange dropped sharply shortly before pit trading closed on Tuesday, catalyzed by falling oil. Silver and platinum both tumbled.
The most active gold contract for February delivery lost 22 U.S. dollars, or 1.9 percent, to finish at 1,129.40 dollars an ounce.Full story
U.S. trade deficit rises to $36.4 bln in November
WASHINGTON, Jan. 12 (Xinhua) -- The U.S. trade deficit jumped 9.7 percent to 36.4 billion U.S. dollars in November, the Commerce Department reported Tuesday.
The November imbalance was bigger than the 34.5 billion dollar deficit that economists had been expecting. Full story
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