By Kate Gibson, MarketWatch NEW YORK (MarketWatch) — U.S. stocks declined Monday as Wall Street extended losses following its worst week drop this year, with telecommunications leading the drop HTC Corp. TW:2498 -2.23% reported a quarterly below consensus estimates after the Taiwanese smartphone maker delayed the full launch of its 2013 smartphone model. The Dow Jones Industrial Average DJIA -0.29% fell 50 points, or 0.3%, to 14,515.17. Alcoa Inc. AA -.00% becomes the first member of the Dow Jones Industrial Average to release results for the first quarter when the aluminum producer reports after Monday’s close. While Alcoa’s results mark the unofficial start of the earnings season, analysts cautioned against reading too much into its report. “Do not get caught up in the hype of Alcoa being a good proxy for the upcoming earnings season because it is not and certainly its stock price has not reflected it either,� said Nick Raich, chief executive officer at The Earnings Scout. Shares of Alcoa have been languishing over the past 18 months, and analysts aren’t too hopeful the first-quarter report will help much. Read a preview of Alcoa's earnings The S&P 500 index SPX -0.17% declined 2.89 points, or 0.2%, to 1,550.39, with telecom down the most and consumer discretionary faring best among its 10 major sectors. BioCryst Pharmaceuticals Inc. BCRX +21.59% shares leapt 21% after China speed up the approval of its anti-influenza drug Peramivir. Lufkin Industries Inc. rose almost 38% after the General Electric Co. GE -0.23% said it would acquire the manufacturer of oil-well pumps for about $3.3 billion, or $88.50 a share. The Nasdaq Composite COMP -0.10% lost 3.07 points, or 0.1%, to 3,200.83. Decliners just outpaced advancers on the New York Stock Exchange, were 80 million shares traded as of 9:55 a.m. Eastern. The biggest earnings of the week will come from J.P. Morgan Chase & Co. JPM -0.21% and Wells Fargo & Co. WFC -1.06% , which both report on Friday. Analysts said while the earnings season is one of the most negatively forecast in awhile, consensus still may be too high. Read: Earnings are first big stock test since market high But the kickoff to earnings season will be the first test for markets since the Standard & Poor’s 500 index reached a new closing high of 1,569.19 on the last trading day of the first quarter. Up almost 9% for the year, the Federal Reserve’s bond-buying program has helped support U.S. equities. Fed Chairman Ben Bernanke is scheduled to give a speech after Monday’s close, with investors looking for any clues as to how long the central bank would continue its monetary easing. On Friday, a disappointing March jobs report prompted worries the U.S. economy had hit a soft patch. Breaking down the jobs report The Bank of Japan has begun its bond purchases after it said last week it would inject some $1.4 trillion into the economy during the next two years. Oil prices were rebounding from last week’s loss of nearly 5%, with benchmark oil for May delivery CLK3 +0.21% up 21 cents at $91.91 a barrel on the New York Mercantile Exchange. Kate Gibson is a reporter for MarketWatch, based in New York.

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