* U.S. earnings season in view, keeps investors sidelined
* J.C. Penney tumbles after CEO shake-up
* Alcoa falls after revenue misses expectations
* Dow up 0.4 pct, S&P down 0.01 pct, Nasdaq up 0.01 pct
By Leah Schnurr
NEW YORK, April 9 U.S. stocks were little
changed on Tuesday as investors were wary of initiating large
bets at the start of the earnings season, which is forecast to
show only modest growth.
J.C. Penney was the largest loser on the S&P 500 as
its shares slid 10.8 percent to $14.16 after the department
store chain replaced Chief Executive Ron Johnson with his
Major indexes swung between gains and losses in early
trading. Forecasts for U.S. first-quarter earnings have been
scaled back in 2013, with profits seen rising just 1.6 percent
from the year-ago quarter, according to Thomson Reuters data. In
January, earnings were seen rising 4.3 percent.
While analysts said the low bar could mean some companies
might handily beat expectations, Wall Street is also vulnerable
to a pullback after this year's rally that has pushed stocks to
But the liquidity stemming from the Federal Reserve's
ultra-loose monetary policy means stocks will see more of a
"rolling correction" among sectors than a large sell-off, said
Dan Veru, chief investment officer at Palisade Capital
Management LLC in Fort Lee, New Jersey.
"I'm expecting us to be in this sideways period where you'll
have some outperforming sectors that might be subject to
profit-taking and some underperforming sectors that might get
attention," he said.
Alcoa Inc, the first Dow component to release
results, reported a higher quarterly profit but
lower-than-expected revenue after the bell on Monday. Shares of
the largest U.S. aluminum producer slipped 0.4 percent to $8.36.
The Dow Jones industrial average rose 20 points, or
0.4 percent, to 14,636. The Standard & Poor's 500 Index
edged down 0.15 point, or 0.01 percent, at 1,562.92. The Nasdaq
Composite Index added 0.48 points, or 0.01 percent, to
Shares of Herbalife were halted pending news. The
New York Times reported KPMG will resign as the auditor of the
company after a KPMG partner was fired for leaking non-public
information on companies the firm audited.