Stocks slip in early trading
Wall Street retreats after four-week rally. Financials tumble. Sun Microsystems and IBM in focus.
NEW YORK (CNNMoney.com) -- Stocks retreated Monday, losing some momentum after a four-week rally, with a breakdown in IBM and Sun Microsystems talks leading a technology selloff.
The Dow Jones industrial average (INDU) lost 80 points, or 1%. The S&P 500 (SPX) index lost 12 points, or 1.4%. The Nasdaq composite (COMP) lost 29 points, or 1.9%.
Investors have been buoyed by the recent rally in stocks. Major gauges have risen for four weeks straight, with the Dow surging 21.5%, its best four-week run since 1933, when it gained 31%.
But with no major economic indicators slated for release Monday, investors will be shifting their attention to the corporate front, including the latest quarterly numbers.
First-quarter results officially kick off this week with aluminum producer Alcoa (AA, Fortune 500), which reports after the closing bell Tuesday.
"It is not about the actual quarter itself, but all eyes are on guidance going forward," said Ryan Larson, head of equity trading at Voyager Asset Management. "People are really looking to see if they are consistent with recent economic numbers."
Until then, investors are continuing to digest a flurry of corporate news.
Companies in focus: General Motors (GM, Fortune 500) chief Fritz Henderson said Sunday on NBC's "Meet the Press" that the beleaguered automaker was working to avoid bankruptcy, but warned that bankruptcy did remain a possibility.
MGM Mirage (MGM, Fortune 500) is reportedly considering the sale of two of its most reliable casino operations in an effort to raise cash, according to the Wall Street Journal.
Financial shares declined following a downgrade of 11 major U.S. banks by veteran banking analyst Mike Mayo of CLSA. Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500) and JPMorgan Chase (JPM, Fortune 500) were among the companies mentioned.
Deals: IBM's acquisition of Sun Microsystems is on the brink of collapse, according to published reports. The two companies have broken off talks after Sun (JAVA, Fortune 500) rejected an IBM (IBM, Fortune 500) offer of around $9.40 or below per share, the reports said. IBM shares lost 1% and Sun shares lost 2.7%.
World markets: Asian markets soared, with the Hang Seng in Hong Kong rallying 3%. But European shares tumbled in the afternoon. The dollar gained against the euro and the yen.
Oil: Crude prices extended Friday's modest decline. U.S. crude for May delivery fell $1.36 to $51.15 a barrel. 
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