Stocks slip in early morning trading

NEW YORK — Stocks are slipping in early trading as investors await the kickoff of earnings season and as the dollar strengthened.

The market had surged the last two days after two weeks of declines. With few economic reports due out the rest of the week, investors will be focusing on quarterly earnings reports, starting with aluminum company Alcoa Inc., which reports results after the market closes.

The dollar rose against other major currencies Wednesday. A stronger dollar can cut into profits from companies selling goods overseas.

The Dow Jones industrial average is down 24.57, or 0.3 percent, at 9,706.68. The Standard & Poor’s 500 index is down 2.29, or 0.2 percent, at 1,052.43, while the Nasdaq composite index is down 2.29, or 0.1 percent, at 2,101.28.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — Stock futures were little changed Wednesday after a furious two-day rally, as investors await the start of earnings season.

Futures gave up earlier gains as the dollar strengthened. Overseas stock markets were mixed.

Investors were looking to give stocks their third consecutive day of gains after two weeks of declines. With few economic reports due out the rest of the week, investors will be focusing on quarterly earnings reports, starting with aluminum company Alcoa Inc., which reports results after the market closes.

Ahead of the opening bell, Dow Jones industrial average futures fell 6, or 0.1 percent, to 9,648. Standard & Poor’s 500 index futures fell 1.80, or 0.2 percent, to 1,046.80, while Nasdaq 100 index futures declined 3.75, or 0.2 percent, to 1,697.00.

Earnings will provide insight into just how far any economic rebound has been so far. During the second quarter, companies largely beat modest earnings expectations by cutting costs and streamlining operations. That helped fuel the market’s rally throughout the summer.

Now, though, investors will be looking for actual growth in revenue and sales as the driver of earnings. That would indicate companies are starting to get their footing again and consumers are back buying goods and services.

Len Blum, a managing partner at Westwood Capital LLC, said revenue growth comes down to the consumer, who is still struggling mightily as unemployment continues to rise.

“The consumer is just really damaged,” Blum said. “Every time we see a blip, it’s not sustainable.”

A report from the Federal Reserve, due out at 3 p.m. EDT, is expected to show consumers likely cut back on their borrowing for the seventh straight month in August. Economists polled by Thomson Reuters, on average, forecast consumer borrowing fell $10 billion at an annual rate in August.

Stocks have surged in the past two days, with the Dow gaining 244 points, its best back-to-back gains since July. All 30 stocks that make up the Dow rose for the fifth time this year. The resurgence comes after back-to-back weekly declines, also the first of its kind since July.

Tuesday’s gains came as investors again rallied around signs of a global economic recovery. Australia’s central bank raised interest rates, an indication the country believes the worst part of the downturn is over.

Energy and material stocks also got a boost as commodities prices rose. Gold continued its surge into Wednesday, hitting a new record of $1,049.70 an ounce.

Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.22 percent from 3.26 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.08 percent from 0.06 percent.

The dollar rose against other major currencies after sagging Tuesday following the interest rate increase in Australia. A stronger dollar can cut into profits from companies selling goods overseas.

Overseas, Japan’s Nikkei stock average rose 1.1 percent. In afternoon trading, Britain’s FTSE 100 fell 0.6 percent, Germany’s DAX index declined 0.4 percent, and France’s CAC-40 dropped 0.4 percent.