Falling oil prices, mixed stocks

NEW YORK (CNNMoney.com) -- Stocks were mixed Wednesday morning as investors welcomed falling oil prices and continued to propel shares of Apple, but showed some caution at the start of the earnings reporting period.

The Dow Jones industrial average (down 15.14 to 12,401.46, Charts) and the broader S&P 500 (down 1.17 to 1,410.94, Charts) index both lost a few points roughly 90 minutes into the session. The Nasdaq (up 2.98 to 2,446.81, Charts) composite added a few points.

Stocks ended mixed Tuesday as investors mulled falling energy prices and strength in Apple (up $3.62 to $96.19, Charts) ahead of the first big wave of fourth-quarter earnings.

Alcoa (up $1.25 to $29.77, Charts) unofficially began the reporting period late Tuesday, becoming the first Dow component to release results, as is traditional. The aluminum maker reported quarterly earnings and sales that rose from a year ago and topped estimates. The company's CEO also gave a bullish outlook for 2007.

Alcoa shares jumped 3 percent Wednesday and protected the Dow 30 from bigger losses.

However, Chevron (down $0.51 to $70.12, Charts) raised some worries about the strength of earnings, announcing Tuesday night that fourth-quarter financial results will be hurt by lower commodity prices.

Oil stocks have been under pressure over the last week with the selloff in the price of the raw commodity spreading to the underlying equities.

The Amex Oil (down 16.44 to 1,099.78, Charts) index lost 1 percent Wednesday morning.

U.S. light crude oil prices for February delivery fell $1.57 to $54.07 a barrel on the New York Mercantile Exchange, following a mixed weekly oil inventory report.

Apple (up $3.62 to $96.19, Charts) continued to rally one session after announcing a new iPhone that allows users to play music and surf the Web on their cell phone.

In other news, US Airways (up $0.49 to $58.39, Charts) said it has increased its takeover bid for bankrupt Delta Air Lines by almost 20 percent. (Full story).

Gold and other commodities continued to decline and that spread to the underlying stocks.

The Amex Gold Bugs (down $5.01 to $307.78, Charts) index lost 1.5 percent and the iShares Silver Trust (down $1.60 to $122.65, Charts) index lost 1.3 percent.

COMEX gold for February delivery slumped $6.80 to $608.20 an ounce.

Market breadth was negative. On the New York Stock Exchange, losers beat winners three to two on volume of 420 million shares. On the Nasdaq, decliners topped advancers by a narrow margin on volume of 640 million shares.

Treasury prices slumped, boosting the yield on the benchmark 10-year note to 4.69 percent from 4.65 percent late Tuesday. Bond prices and yields move in opposite directions.

10 big ideas for 2007

Danger ahead on Wall Street?

More on the markets