NEW YORK: Early gains in US stocks faded yesterday as investors fretted over what is expected to be a weak earnings season, while gains in the euro were checked by uncertainty over whether and when Spain would request help with its finances.
Investors failed to be cheered even by data showing Americans were the most upbeat they've been in five years, and sterling results from JPMorgan Chase and Wells Fargo.
"There's a lot of trepidation about earnings season," said Randy Warren, chief investment officer of Warren Financial Service in Exton, Pennsylvania.
The Dow Jones Industrial Average edged up 10.25 points, or 0.08 percent, at 13,336.64. The Standard & Poor's 500 Index slipped 2.89 points, or 0.20 percent, to 1,429.95. The Nasdaq Composite Index was off 2.80 points, or 0.09 percent, to 3,046.61.
Weak global demand has heightened concerns over the prospects for corporate earnings growth. As a group, S&P 500 companies' quarterly earnings are expected to fall 3 percent from a year ago, according to Thomson Reuters data, marking the first decline in three years.
Shares of JPMorgan, which had surged before the market's open, and those of Wells Fargo, were lower in late morning trading.
In Europe, the FTSEurofirst 300 was off 0.3 percent. The MSCI world stock index lost 0.1 percent.
The euro rose against the dollar and yen, but the currency looked likely to struggle for traction. A bailout request from indebted Spain is seen as positive for the euro as it would remove another layer of uncertainty in financial markets and activate the European Central Bank's bond-buying program, aimed at lowering borrowing costs for troubled euro zone economies.
The euro was at $1.2969, up 0.3 percent on the day but down 0.4 percent week-on-week.
It has traded in a tight range roughly between $1.28 and $1.3170 since mid-September.
The dollar was off 0.1 percent against a basket of other major currencies.
Brent oil fell below $115 a barrel after a prediction of a further decline in oil consumption and higher supplies offset concerns about potential output disruptions in the Middle East.
Brent crude was down $1.35 to $114.36 a barrel, while US crude lost 18 cents to $91.89.
Stocks falter on earnings concerns
