The selloff in oil continued, dragging down the major U.S. stock indexes; After the bell Alcoa earnings beat forecasts. Bobbi Rebell reports.
U.S. stocks took a hit on Monday. Weakness in oil prices pushed the energy sector lower. Brent and U.S. crude fell to record lows after Goldman Sachs slashed its short-term price forecasts. Meanwhile earnings season kicked off with Alcoa. The company beat esatimates, and shares moved higher in after hours trading. Decison Economics Cary Leahey: SOUNDBITE: CARY LEAHEY, SENIOR ADVISER, DECISION ECONOMICS (ENGLISH) SAYING: "Investors are not going to be surprised by earnings overall which are either flat to slightly higher industry as a whole. If you take out energy gains may be more like four percent or better year over so this is a bar that has been set fairly low and it may allow the market to be pleasantly surprised. But you are dealing with a stock market that did extraordinarily well, far better than most people if not many people said last year. And so you may get some give back over the next quarter as you are seeing earnings gains slow." Tiffany shares slumped after the upscale jeweler cut its full-year profit forecast on the back of disappointing sales and weakness in Japan." Apple chip supplier SanDisk also saw some red arrows. That stock plunged after it said fourth-quarter revenue will come in lower than previously forecast, partly because of shaky sales of its memory storage chips. SanDisk's warning also spooked investors in rival Micron Technology. Lululemon raised its fourth-quarter revenue and profit forecast above analysts estimates on strong holiday sales. Over in the Pharma world. Dublin's Shire made its biggest acquisition to date, announcing plans to buy New Jersey-based NPS Pharmaceuticals for $5.2 billion. Shire is hoping the move would give it a boost in treatments for rare diseases. And shares of Massachusetts-based Foundation Medicine surged more than 100 percent after Swiss pharmaceutical giant Roche agreed to take a majority stake in the company, worth more than $1 billion. European shares ended higher in volatile trade.