In Wake of Alcoa Report, Dow Falls Again

NEW YORK, Jan. 13 -- Wall Street's growing angst about company earnings gave stocks a mixed finish Tuesday, with the Dow Jones industrials suffering their fifth straight loss.

The Dow fell 25.41, or 0.30 percent, to close at 8448.56. Broader stock indicators advanced. The Standard & Poor's 500-stock index rose 1.53, or 0.18 percent, to 871.79, while the Nasdaq composite index rose 7.67, or 0.50 percent, to 1546.46.

The concern for investors is that the recession will have a more severe impact on profits than investors have been anticipating after aluminum giant Alcoa reported late Monday that it lost $1.19 billion during the fourth quarter. An analyst's warning about profits at General Electric only added to the market's uneasiness.

"We're sort of in a wait-and-see mode," said Carl Beck, partner at Harris Financial Group. "The optimism that we saw at the beginning of the year has sort of been put on hold as people await earnings reports over the next couple of weeks."

Federal Reserve Chairman Ben S. Bernanke said the stimulus package being crafted by President-elect Barack Obama and Congress could provide a "significant boost" to the sinking economy. During a speech in London, he also said "more capital injections and guarantees may become necessary" to stabilize financial markets and spur more lending.

The market got some upbeat news that lent support to stocks early in the day when the Commerce Department said the trade deficit fell to its lowest level in five years. The deficit narrowed 28.7 percent, to $40.4 billion in November from $56.7 billion in October, as demand for oil dropped by a record amount.

Though demand for imports has dropped, investors are more concerned by the waning need for American products overseas as economies around the world suffer. The fear is that as companies struggle with falling global demand, it will be more difficult for the economy to rebound.

The dollar was mixed against other major currencies, while gold prices fell slightly.

Light, sweet crude oil rose 19 cents to settle at $37.78 on the New York Mercantile Exchange after tumbling 8 percent Monday.

Movers

Alcoa slid 51 cents, to $9.55.

General Electric lost 89 cents, to $14.94.