Wall Street Falls Ahead Of Earnings Season

New York, NY (AHN) - U.S. markets drifted lower on Monday as investors took to the sidelines ahead of what is expected to be a weak earnings season. Dow Component, Alcoa reported after the bell, marking the unofficial start too corporate reporting over the coming month.

The Dow Jones Industrial average fell 125 points or 1.5 percent. 25 of 30 Dow components finished lower on Monday.

Citigroup, down 17 percent, weighed on the Dow most as news the bank may sell a chunk of its brokerage business to Morgan Stanley raised concerns the company needs cash to cover looming losses.

The S&P 500 shed 20 points or 2.3 percent. Nine of 10 major economic sectors finished Monday lower. The financials were by far the biggest laggard, down 5.7 percent on the day. The materials and energy sectors followed, down 3.6 percent and 3.1 percent respectively.

Utilities was the only sector to post a gain on the day, adding 0.2 percent as investors sought stability in a soft market.

Nasdaq Composite fell 32 points or 2 percent. The chip stocks weighed on tech the most as the Philadelphia Semiconductor index fell 2.9 percent on the session.

Crude oil sold off nearly 8 percent on Monday, shedding $3.23 a barrel to settle at $37.60 on the New York Mercantile exchange.

Elsewhere, magistrate Judge Ronald Ellis said Bernard Madoff will remain free on $10 million bond as he awaits trial, ruling against U.S. prosecutors who had requested he be jailed for breaking the terms of bail.

Tuesday's market will see the release of the December Treasury Budget. Economists are expected a $33 billion deficit for the month. The November trade balance will be reported as well.