YAHOO [BRIEFING.COM]: Dampened sentiment that stemmed from an earnings miss at Alcoa led to broad-based weakness that culminated in the stock market's first loss of the new year.

Alcoa (AA 15.52, -1.93) announced last evening earnings results that fell short of the consensus estimate. Though the miss doesn't necessarily carry implications for the broader economy, it did undermine the positive tone of trade that had taken stocks higher in each of the past six sessions.

Commodities were also broadly weak this session. Specifically, the CRB Commodity Index dropped 1.7%, which was its worst single session percentage loss in more than one month.

Softer commodity prices and weakness among Alcoa and other diversified metals plays (-3.8%) dragged the materials sector to a 1.9% loss, which was the worst of the major indices.

Diversified financial services stocks (-2.9%) and diversified bank shares (-1.8%) slumped amid news that the government wants to impose fees on banks to help recoup TARP funds. The weakness that emanated from bank stocks even undercut multiline insurers, which had traded with strength after Hartford Financial (HIG 27.12, +0.95) issued a strong earnings update. Multiline insurers finished fractionally lower, while the broader financial sector fell to a 1.6% loss.

Large-cap tech remained weak. Its losses caused the Nasdaq Composite to lag for the second straight session.

The Dow managed to limit its move to the downside, though. That was largely the result of Procter & Gamble (PG 60.89, +0.69), which was upgraded by analysts at Bank of America's Merrill Lynch. DJ30 -36.73 NASDAQ -30.10 NQ100 -1.3% R2K -1.3% SP400 -1.3% SP500 -10.76 NASDAQ Adv/Vol/Dec 755/2.39 bln/1923 NYSE Adv/Vol/Dec 852/1.10 bln/2187