MARKET SNAPSHOT: U.S. Stocks Dogged By Worries Over Earnings In Choppy Trade

By Anora Mahmudova and Sara Sjolin, MarketWatch

Alcoa, Bed Bath & Beyond shares drop after earnings results

NEW YORK (MarketWatch) -- After an earlier trip into the negative territory U.S. stocks struggled to move higher on Thursday. The main indexes were switching between small gains and losses as worries about poor quarterly earning after Alcoa's revenues missed estimates lingered.

The S&P 500 (SPX) was up 2 points, or 0.1%, to 2,083, with five of its 10 main sectors trading lower. Utilities led the losses, while energy stocks rallied thanks to a jump in oil prices.

The Dow Jones Industrial Average (DJI) was flat at 17,902.

The Nasdaq Composite (RIXF) inched up 5 points, or 0.1%, to 4,955.

Mike Baele, senior portfolio manager at Private Client Reserve at U.S. Bank Wealth Management, said stocks may be the best game in town.

"Earnings estimates came down and valuations are on a high side, but we still think that equities are attractive relative to other assets," said Baele.

"In the next few weeks, investors will pay a lot of attention to forward guidance from companies as they beat the lowered threshold," he said, warning that outside risks, such as Europe's currency problems and conflict involving Russia and Ukraine, pose bigger risks than domestic growth.

FOMC reaction: Investors were still digesting the minutes from the latest FOMC meeting, released on Wednesday, which showed several members supported a June rate hike (http://www.marketwatch.com/story/low-bar-set-for-fed-rate-hike-minutes-show-2015-04-08), but also that others thought a rate hike wouldn't be warranted until later in the year, as low oil prices and the strong dollar would likely hold inflation down. U.S. stock markets ended the Wednesday session slightly higher after the minutes (http://www.marketwatch.com/storyno-meta-for-guid).

"What has been taken as dovish FOMC minutes didn't really shed any new light on the path for interest rates. June has looked unlikely for a while now, and any month beyond that will depend on the data," said Craig Erlam, senior market analyst at forex broker Oanda, in emailed comments.

Data: The number of Americans filing for initial unemployment benefits (http://www.marketwatch.com/story/us-jobless-claims-jump-14000-to-281000-2015-04-09) rose by less than expected, while the rate of layoffs remained historically low. Meanwhile, wholesale inventories edged up, as sales fell, in a sign that demand over the winter slowed down.

Stocks to watch: Shares of Alcoa Inc.(AA) lost 4.9% after the aluminum maker late Wednesday reported revenue that missed forecasts (http://www.marketwatch.com/story/alcoa-swings-to-profit-but-revenue-misses-2015-04-08) and pointed to a challenging outlook.

Zynga Inc.(ZNGA) tanked 14% after the videogame maker late Wednesday said chief executive Don Mattrick will leave the company effective April 8 (http://www.marketwatch.com/story/zynga-ceo-don-mattrick-to-leave-company-founder-mark-pincus-to-be-ceo-2015-04-08-16911119), to be replaced by founder and chairman Mark Pincus.

U.S.-listed shares of Novogen Ltd. (NVGN) surged 25% to $5.65 after the Australian biotech company said its experimental drug Anisina was shown to kill melanoma cells.

Bed Bath & Beyond Inc.(BBBY) fell 5.8% after the retailer on Wednesday reported fourth-quarter earnings in line with forecasts.

Shares of Walgreens Boots Alliance Inc.(WBA) gained 2.5% after the drugstore chain reported profit ahead of expectations (http://www.marketwatch.com/story/walgreens-stock-rises-after-profit-beats-expectations-2015-04-09).

For more on today's notable movers, read Movers & Shakers column. (http://www.marketwatch.com/story/constellation-brands-walgreens-alcoa-in-focus-2015-04-08)

Other markets: Asian stock markets closed mostly higher (http://www.marketwatch.com/storyno-meta-for-guid), powered by a 2.7% jump for the Hang Seng Index . Stocks in Europe followed suit, with the Stoxx Europe 600 index on track to log an all-time closing high (http://www.marketwatch.com/storyno-meta-for-guid).

Oil (CLK5) rebounded (http://www.marketwatch.com/story/oil-slightly-recovering-after-previous-sessions-6-fall-2015-04-09) from Wednesday's more-than-6% slide. Metals were mixed, while the ICE dollar index (DXY) advanced.

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