* Alcoa misses revenue estimate, weighs on Wall Street
* Euro weaker after key Greece debt auction
* Yen mostly flat against the dollar after U.S. trade data
(Updates with U.S. markets, changes byline, dateline, previous
LONDON)
By Walter Brandimarte and Natsuko Waki
NEW YORK/LONDON, April 13 (Reuters) - U.S. stocks fell on
Tuesday as aluminum maker Alcoa Inc missed its revenue target
while the euro weakened against the dollar after Greece
successfully sold short-term debt, but at very high yields.
U.S. Treasury prices rose on safe-haven buying as investors
remained cautious before a slew of key corporate earnings that
will help gauge the strength of the economy.
German government bonds also rose after Greece easily sold
a total of 1.2 billion euros ($1.63 billion) of 6-month and
one-year T-bills, passing its first borrowing test since the
euro zone reached a deal on a standby rescue package for the
debt-laden country.
But analysts said the yields on the bills -- 4.55 percent
and 4.85 percent respectively -- were still high, reminding
investors of the high costs Greece will have to pay to further
access the market.
"So it does not really change the underlying position that
Greece has very tough times ahead," said Ben May, economist at
Capital Economics in London. "It's going through a deep
recession, and that's going to lead the debt-to-GDP ratio to
surge higher."
In the United States, the cautious mood was reinforced by
quarterly results that showed Alcoa Inc <AA.N> missed its
revenue target, even as earnings were in line, supported by
rising prices. For details, see [].
"This will certainly be an earnings period where there is
continued focus on revenues," said Tim Ghriskey, chief
investment officer of Solaris Asset Management in Bedford
Hills, New York.
"Investors are looking for signs of revenue growth to show
that the economic rebound is real and is generating real
demand."
The Dow Jones industrial average <> lost 27.36 points,
or 0.25 percent, to 10,978.91, while the Standard & Poor's 500
Index <.SPX> declined 5.04 points, or 0.42 percent, to
1,191.44. The Nasdaq Composite Index <> was down 6.48
points, or 0.26 percent, at 2,451.39.
Alcoa's shares fell 2.4 percent.
The FTSEurofirst 300 index <> fell 0.4 percent while
emerging stocks <.MSCIEF> declined 0.85 percent. Losses were
intensified after Wall Street opened lower.
TREASURIES UP, EURO FALLS
Analysts said investors were wary ahead of key
first-quarter earnings statements this week, including from
JPMorgan Chase & Co <JPM.N>, Google Inc <GOOG.O>, Bank of
America Corp <BAC.N> and General Electric Co <GE.N>.
The cautious mood inspired investors to buy safe-haven U.S.
Treasuries. The benchmark 10-year U.S. Treasury note
<US10YT=RR> was up 1/32 in price, with the yield at 3.836
percent.
Euro zone debt gained after the Greece debt sale. June Bund
futures <FGBLM0> hit a session high of 123.12, up 45 ticks on
the day, having broken through resistance in the 123.00 area.
But the euro fell to a session low as investors refocused
on the fiscal problems of the euro zone, leaving aside earlier
pessimism about February U.S. trade data that had weighed on
the greenback.
The European single currency <EUR=> weakened 0.17 percent
to $1.3561.
Against the Japanese yen, the dollar <JPY=> was flat at
93.21 as a larger-than-expected U.S. trade deficit prompted
investors to debate the strength of the recovery in U.S.
manufacturing.
Crude oil futures fell more than 2 percent in New York,
pushing lower for a fifth consecutive session, on speculation
that inventory reports will show stockpiles rose again last
week.
U.S. light crude oil <CLc1> fell $1.65, or 2.06 percent, to
$82.68 per barrel.
(Additional reporting by Chuck Mikolajczak in New York;
Editing by Padraic Cassidy)
