FKLI Related News (Wed, Jan 9)

NEW YORK (Reuters) - Stocks fell on Tuesday, retreating from last week's rally on the "fiscal cliff" deal in Washington, as companies started to report results for the fourth quarter. After a 4.3 percent jump in the two sessions around the close of the fiscal cliff negotiations, the S&P has declined a bit, with investors finding few catalysts to extend the rally that took the benchmark to five-year highs.

Shares of AT&T Inc (NYS:T) dropped 1.7 percent to $34.35, making it one of the biggest drags on the S&P 500, after the company said it sold more than 10 million smartphones in the quarter. This figure beat the same quarter in 2011, but also means increased costs for the wireless service provider. Providers like AT&T pay hefty subsidies to handset makers so that they can offer discounts to customers who commit to two-year contracts. Fourth-quarter profits are expected to beat the previous quarter's lackluster results, but analyst estimates are down sharply from October.

Quarterly earnings are expected to grow by 2.7 percent, according to Thomson Reuters data. Dow component Alcoa, the largest U.S. aluminum producer, reported results after the closing bell. The Dow Jones industrial average (^DJI) dropped 55.44 points, or 0.41 percent, to 13,328.85. The Standard & Poor's 500 Index (^GSPC) fell 4.74 points, or 0.32 percent, to 1,457.15. The Nasdaq Composite Index (^IXIC) lost 7.01 points, or 0.23 percent, to 3,091.81. Markets went lower as some of the first reported earnings were weak. Volume was below the 2012 average of 6.42 billion shares traded per day, as 6.19 billion were traded on the New York Stock Exchange, NYSE MKT and Nasdaq. Declining stocks outnumbered advancing ones on the NYSE by 1,495 to 1,458, while on the Nasdaq decliners beat advancers 1,305 to 1,158.

FKLI spot month opened slightly lower at 1,688.50 this morning following decline in U.S stocks as traders awaited the start of corporate earnings season. However, stocks on Bursa Malaysia is generally expected to continue its bullish momentum. Today’s Support and Resistance for January contract is located around 1,685 and 1,700 respectively.