Stocks are seeing notable weakness in mid-morning trading on Tuesday, pulling back further off their recent highs. Profit taking continues to contribute to the weakness in the markets, with traders cashing in on the market's recent gains ahead of the unofficial start of earnings season.

Some selling pressure has been generated by a report from the Times of London, which said that new forecasts from the International Monetary Fund are expected to suggest that toxic debts racked up by banks and insurers could spiral to $4 trillion.

In January, the IMF said that it expected the deterioration in U.S.-originated assets to reach $2.2 trillion by the end of next year.

Additionally, Alcoa (AA) is scheduled to release its first quarter results after the close of trading, with the release of results from the aluminum producer seen as the unofficial start of the earnings reporting season.

Alcoa has said its first-quarter results would continue to be negatively affected by the troubled global economic environment that has adversely affected pricing and demand for aluminum, alumina, and aluminum products.

The major averages have moved well off their worst levels of the day in recent trading, although they currently remain firmly in the red. The Dow is currently down 130.54 at 7,845.31, the Nasdaq is down 22.18 at 1,584.53 and the S&P 500 is down 12.12 at 823.36.

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