Monday, April 6, 2009

Wall Street is retreating after a four-week rally as investors fear trouble from looming first-quarter earnings reports and more woes for banks.

Traders were also disappointed that talks stalled between IBM and Sun Microsystems, a sign that the market is still not able to support big merger deals.

Meanwhile, a report from a leading analyst predicting more losses at banks is hurting financial stocks.

First-quarter earnings season kicks off Tuesday with a report from Alcoa.

At midday, the Dow is down 128 to 7,889. The Standard & Poor's 500 index is down 16 to 826, while the Nasdaq composite index is down 36 to 1,584.