US stocks were little changed at the open on Tuesday as an earnings season expected to show sluggish corporate growth gets under way.
The Dow Jones Industrial Average fell 40.65 points, or 0.30%, to 13,343.64. The S&P 500 lost 4.28 points, or 0.29%, to 1,457.61. The Nasdaq Composite Index dropped 5.04 points, or 0.16%, to 3,093.78.
Profits in the fourth quarter are seen above the previous quarter's lackluster results, but analysts' current estimates are down sharply from where they were in October. Quarterly earnings are expected to grow by 2.8%, according to Thomson Reuters data.
If earnings growth appears to be "less bad" than expected that would translate into a near-term uptick in the market, according to Eric Wiegand, senior portfolio manager at US Bank Wealth Management in New York.
"But I think there's still ample areas for concern," he said, listing policy worries in Washington and uneven economic activity as a result of Superstorm Sandy during last quarter.
German data showed industrial orders fell more than forecast in November due to a sharp drop in demand from abroad, reinforcing concerns that Europe's largest economy may have contracted in the fourth quarter of 2012.
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Monsanto Co shares rose 3.2% to $99.05 after hitting a more than four-year high at $99.99. The world's largest seed company raised its earnings outlook for fiscal 2013 and posted strong first-quarter results.
Education provider Apollo Group and Dow component Alcoa Inc, the largest US aluminum producer, round out the start of earnings season after the closing bell.
Shares of restaurant-chain operator Yum Brands Inc fell 4.6% to $64.78 a day after the KFC parent warned sales in China, its largest market, shrank more than expected in the fourth quarter.
London-traded Vodafone shares rose almost 2% after its partner in US joint venture Verizon Wireless said it would be "feasible" to buy out the British group. US-traded Vodafone stock fell 1.5%.
Sears Holdings shares fell 1.4% to $42.31 a day after the company said its chief executive will step down for family health reasons. The US retailer also reported a 1.8% decline in quarter-to-date sales at stores open at least a year.
GameStop shares fell 7.1% to $23 after it reported sales for the holiday season and cut its guidance.