U.S. stocks extend losses on continued oil price plunge

U.S. stocks retreated further on continuously sinking crude prices in the morning session Monday, as a new corporate earnings season is unfolding.

At noon, the Dow Jones Industrial Average fell 65.73 points, or 0.37 percent, to 17,671.64. The S&P 500 lost 11.92 points, or 0.58 percent, to 2,032.89. The Nasdaq Composite Index slipped 34.12 points, or 0.73 percent, to 4,669.95.

Falling oil prices continued to pressure U.S. stocks, with Brent crude for February delivery touching a session low of 47.18 dollars per barrel early Monday and U.S. crude for February hitting as low as 45.90 dollars a barrel.

Goldman Sachs analysts on Monday substantially slashed their near-term oil price forecast, with the three-month price forecast for Brent cutting to 42 dollars a barrel from 80 dollars.

In response, energy sector, the biggest laggard among the S&P 500's ten sectors, suffered a big loss of a 2.64-percent decline at midday Monday.

Aluminum giant Alcoa Inc. will release results for the fourth quarter of last year after Monday's closing bell, which will unofficially kick off the earnings season.

Some major U.S. banks, including J.P. Morgan Chase & Co, Wells Fargo & Co. and Citigroup Inc., will also release their quarterly results this week.

According to Thomson Reuters, the fourth-quarter earnings are expected to grow 4.0 percent year on year, and 22 S&P 500 companies are due to report quarterly results this week.

On Friday, the three benchmarks pulled back following two sessions' sharp gains to cap a volatile trading week lower, as investors were assessing the December nonfarm payroll report. Endite