US close: First fall of 2010

LONDON (SHARECAST) - Wall Street closed lower for the first time in 2010 as aluminium producer Alcoa got the fourth quarter results season off to a low-key start while a move by China to cool down bank lending also undermined sentiment. The Dow fell 36 to close at 10,637. Nasdaq shed 30 at 2,282 while the S&P 500 gave up 10 at 1,136. Oil giant Chevron added to the downbeat mood as it warned late Monday that fourth quarter numbers would be hit by sharply lower fourth-quarter refining earnings. Alcoa, regarded as a reasonable indicator of global economic activity, had reported weaker-than-expected results on Monday and got a hammering today. The aluminium giant reported a loss of $266m, or 27c per share, including one-offs. Underlying earnings were about one cent a share, compared to a loss of 28c in the fourth quarter of 2008, but this was below forecasts of 6c. Fourth quarter revenue fell by 4% to $5.43bn. For the full year, Alcoa posted a net loss of $1.15bn, or $1.23 per share, on revenue of $18.44bn. Shares in computer games publisher Electronic Arts were also dumped in the bargain bucket after sub-par third quarter results were accompanied by a lowering of full year profits guidance. On the bright side, there was better news at supermarket group Supervalu Inc, which made a profit in the third quarter and kept its earnings forecasts for the full-year. The firm, which runs Albertsons, Jewel-Osco, Shaw's and Save-A-Lot supermarkets, posted net income of $109m, or 51 cents a share versus a net loss of $2.94bn, or $13.95 a share, a year ago, hit by a non-cash charge. It is forecasting adjusted earnings of between $2.01 and $2.11 a share, although same store sales are seen falling slightly more than expected. The shares are up over 8%. Insurer Hartford Financial Services was also wanted after the company indicated operating profit in the final quarter of 2009 was about twice what had been expected. Indian software developer Infosys Technologies advances after upping its full year revenue guidance in the wake of better than forecast third quarter earnings. Before the bell today, Los Angeles-based home builder KB Home said it swung to a fourth-quarter net profit of $100.7m, or $1.31 a share, compared with a net loss of $307.3m, or $3.96 a share, last time. Sales in the quarter dropped by 27% to $674.9m, but were still better than expected. Luxury jewellery retailer Tiffany raised its annual earnings forecast after better than expected sales over the Christmas period. In economic news, the November trade deficit widened to $36.4bn from a revised $33.2bn in the previous month, more than the $34.5bn analysts had been expecting. Elsewhere, Cadbury dealt another blow to hopeful bidder Kraft Foods today, repeating its view that the American抯 ?0.5bn offer is 慸erisory?and completely undervalues the British chocolate maker. Broker comment lifted network equipment supplier QLogic. BMO Capital Markets said strong sales of servers should benefit QLogic, and raised the shares to 憃utperform?from 憁arket perform? S&P 500 - Risers Qlogic Corp. (QLGC) $20.65 +9.26% Supervalu Inc. (SVU) $13.67 +5.80% Hershey Foods Corp. (HSY) $37.75 +4.34% Avon Products Inc. (AVP) $32.17 +4.01% S&P 500 - Fallers Metropcs Communications Inc. (PCS) $6.35 -11.68% Alcoa Inc. (AA) $15.52 -11.06% Electronic Arts Inc. (ERTS) $16.83 -7.86% Salesforce.Com Inc. (CRM) $68.29 -7.28% Dow Jones I.A - Risers Kraft Foods Inc. (KFT) $29.29 +1.70% American Express Inc. (AXP) $42.02 +1.33% Procter & Gamble Co. (PG) $60.89 +1.15% Coca-Cola Co. (KO) $56.88 +1.08% Dow Jones I.A - Fallers Alcoa Inc. (AA) $15.52 -11.06% Bank Of America Corp. (BAC) $16.36 -3.37% Caterpillar Inc. (CAT) $62.24 -2.95% JP Morgan Chase & Co. (JPM) $43.49 -2.34%