Wall Street fell overnight as investors awaited a slew of US corporate earnings to gauge whether, and for which companies, the pickup in the economic recovery has translated to an improvement in the bottom line.
In afternoon trading in New York today, the Dow Jones Industrial Average fell 0.38 per cent, the Standard & Poor's 500 Index slid 0.41 per cent, while the Nasdaq Composite Index shed 0.32 per cent. Declines in shares of Exxon Mobil and those of Walt Disney, both down 1.4 per cent, led losses in the Dow.
"People are sitting on their hands, waiting for major results to figure out how strong this season may be," Douglas DePietro, managing director at Evercore Partners in New York, told Reuters.
Some already fell short of the mark. Shares of Lululemon sank, last down 15.8 per cent, after the high-end yogawear retailer downgraded its earnings outlook.
"We were on track to deliver on our sales and earnings guidance through the month of December; since the beginning of January, we have seen traffic and sales trends decelerate meaningfully," Chief financial officer John Currie said in a statement. "Based on this recent performance and assuming these trends continue through the remainder of January, we are reducing our outlook for the fourth quarter."