US open: Stocks mixed as IMF cuts economic growth forecasts

US stocks were mixed on Tuesday as investors continued to weigh earnings from Alcoa and as the International Monetary Fund downgraded its economic growth forecasts.

At 1533 BST, the Dow Jones Industrial Average rose 0.41% and the S&P 500 increased 0.30% but the Nasdaq dropped 0.29%.

Traders were still digesting results from aluminium producer Alcoa, which unofficially kicked off the earnings season with worse-than-expected quarterly revenue on Monday

Earnings fell to $16m from $195 a year before, while revenue dropped 15% to $4.9bn versus analysts’ forecasts of around $5.2bn. Shares in the company were down 5.03% at 1535 BST.

“US earnings season is underway and first indications are that this could live up to its billing as one of the worst in years,” said Lee Wild of Interactive Investor.

“Profit at America's largest companies is widely-tipped to have fallen by an average of 9% during the first quarter. But aluminium producer Alcoa, the unofficial starting gun, said overnight it made less than expected at the start of 2016.”

This week will see earnings releases from heavyweights JPMorgan Chase, Citigroup and Bank of America Corp.

Meanwhile, the IMF cut its forecast for global growth in 2016 to 3.2% from the 3.4% it expected in January, with all advanced economies revised downwards. The estimate for the US growth was reduced to 2.4% versus 2.6% at the start of the year.

On the upside, oil prices gained ahead of a 17 April meeting between global producers to discuss whether to freeze output.

West Texas Intermediate crude rose 0.73% to $40.66 per barrel and Brent increased 1.08% to $43.30 per barrel at 1541 BST.

In economic data, the US import price index rose 0.2% month-on-month in March, compared to forecasts for 1.2% growth and the previous month’s 0.3% decline.

The National Federation of Independent Business said its small business optimism index fell to a two-year low of 92.6 in March from 92.9 in February, missing expectations for a reading of 93.7.

Among corporate stocks moving the market, Hertz Global Holdings nudged lower after downgrading its guidance for 2016.

Marathon Oil edged higher after announcing late on Monday that it has signed agreements to sell non-core assets for $950m.

In currencies, the dollar was up 0.9% versus the pound, up 0.37% against the euro and 0.57% firmer versus the yen.