Dow, S&P 500 slide ahead of earnings

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There was a cautious tone on Wall Street Monday as investors brace for a first-quarter earnings season that's likely to be quite ugly.

One analyst told Reuters he's bracing for one of the worst earnings seasons in recent memory.

Earnings for companies in the S&P 500 are expected to tumble 9 percent in the first quarter.

But what really has investors tied up in knots is the uncertainty surrounding the outlook for corporate that CEOs will provide.

Envestnet chief investment strategist Tim Clift says that will determine how much selling hits the market.

SOUNDBITE (ENGLISH) TIM CLIFT, CHIEF INVESTMENT STRATEGIST, ENVESTNET, SAYING:

"It's really what are they talking about for the second quarter because I don't think any of these companies have any idea when the economy is going to restart or when they can restart, so whether we are going to have to discount those 20 percent, 50 percent, 70 percent or more that's the big question."

The Dow lost more than a full percent. The fall was not as big for for the S&P 500 but the Nasdaq managed a small rally.

Caterpillar was the biggest drag on the Dow. The stock was downgraded by Bank of America on concerns the heavy-duty equipment maker is too exposed to the hemorrhaging energy sector and earnings forecasts are too high. The stock tumbled 9 percent.

Speaking of weakness in the energy sector: Oilfield services company Baker Hughes warned it will take a $15 billion write down of assets.

Oil prices didn't see any bounce from this weekend's historic agreement between OPEC and its allies to cut global production by an unprecedented 10 percent.

Other points of weakness for the market: Cruise ships. The entire sector tumbled in response to the U.S. Centers for Disease Control and Prevention's decision to extended a no-sail order for 100 days. Royal Caribbean was down 16 percent. Norwegian Cruise Lines was down 13 percent. Carnival lost 7-1/2 percent.

Ford warned it could swing to a quarterly loss of $600 million compared to the $2.4 billion profit it posted a year ago. Car sales have dried up globally due to the coronavirus outbreak. Ford shares headed in reverse by 4 percent.