Stocks fall on increased economic worries

Dow is down 159, decliners over advancers 4-1 & NAZ is down 35.

S&P 500 FINANCIALS INDEX dropped 4 to 166, it just can't get out of its 1 month trading range in the 160s. The Alerian MLP Index topped out at 200 yesterday. Today its down 4 to 195, Dow Jones REIT Index dropped 4, Barclays Capital High Yield Bond ETF is down a big 3% while VIX spiked up 2+ to 41 (fears are growing).

Oil backed off from its recent rally as negative macro economic fears drive away buyers:

CLG09.NYM

...Crude Oil Feb 09

....47.40

... 1.18 .......(2.4%)

The economic reports keep coming & it's all grim & even grimmer.

ADP Employer Services’ reported payrolls shrank by 693K last month, the biggest drop since record keeping began in 2001. This signals the big unemployment report on Fri will be worse that expected & expectations are already very low. Alcoa (AA) & Intel (INTC), both Dow stocks, gave terrible guidance news. Then Time Warner (TWX) announced it will have a big loss in 2009. They're each down around 1.

•Alcoa shares fall after aluminum giant sets cost cuts
•Time Warner to Post Loss After $25 Billion Writedown of AOL, Cable Assets
•Intel Fourth-Quarter Sales Fall 23%, Missing Reduced Forecast; Shares Drop


More corp guidance reports are forthcoming & they won't be pretty.

I have my eye on the old adage about the first week of trading predicting the full year's performance. Generally the signal is correct, just check back to last year. Half way thru the week, it looks like this indicator will give another negative signal:


Dow Jones Industrials

1/2/09.... 9,034
Today......8,856