Significant weakness remains visible on Wall Street in early afternoon trading on Monday, with the major averages stuck firmly in negative territory after closing higher for five consecutive weeks. Earnings anxiety has inspired some traders to cash in on the recent gains.
With financial giants Citigroup (C), JP Morgan (JPM), and Goldman Sachs (GS) among the companies that are due to release their quarterly results this week, many traders are doing some profit taking amid concerns about the outlook for impending earnings season.
Boeing (BA) has contributed to the anxiety about the outlook for earnings, with the aerospace giant saying that its first quarter earnings would be negatively impacted by decisions to reduce airplane production as well as unfavorable price escalation.
In other news, the Treasury Department is directing General Motors Corp. (GM) to prepare for a bankruptcy filing by a June 1 deadline, the New York Times reported, citing unidentified people with knowledge of the plans.
The major averages have moved well off their worst levels of the day in recent trading, although they remain firmly negative. The Dow is currently down 82.68 at 8,000.70, the Nasdaq is down 15.14 at 1,637.40 and the S&P 500 is down 5.17 at 851.39.
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