Facade of Coach's first Paris flagship

Investors, who are already on edge given the down market, were feeling antsy ahead of Coach Inc.’s second-quarter earnings report Tuesday morning.

Coach stock dropped more than 6 percent to $30.35 today. The analyst consensus estimate, according to FactSet, calls for second-quarter earnings of 66 cents per share and sales of $1.27 billion. A year ago, Coach posted earnings of 72 cents per share on sales of $1.21 billion. Coach has tried to reduce its promotional activity and its products seemed to be favored in the crowded handbag market. There are some hopes that Coach will beat its earnings estimates, but shareholders have apparently decided not to take any chances.

Overall, the equity market took its lead from crude oil, which fell another 5.8 percent to $30 a barrel today.

Oil had begun a tepid recovery at the end of last week, when Saudi Arabia declared that low prices wouldn’t cause it to cut back on energy projects. Dropping demand for oil from China and over-supply from countries unwilling to cut back on production has fueled the sharp drop in oil prices.

Goldman Sachs suggested that the world economy was entering a cycle of commodity deflation as it downgraded the company of Caterpillar to a sell rating. Goldman suggested the downturn would be similar to what was seen during the Eighties and Nineties and could last several years.

The S&P 500 fell 29 points to 1,877, the Dow Jones Industrial Average closed down 208 points to 15,885 and the Nasdaq ended the day lower by 72 points to 4,518. The S&P Retail ETF fell almost 2 percent to close at $39.59. European indices all ended the day modestly lower. The French CAC fell 25 points to close at 4,311, the German DAX dropped 28 points to close at 9,736 and the U.K. FTSE ended the day down 23 points to 5,877.

Under Armour Inc.’s stock fell by more than 3 percent to $68.16 even though the company said it was partnering with Dwayne Johnson. The former wrestler, known for his nickname “The Rock,” will develop his own product range and produce original content for the company’s Connected Fitness platform. Analysts cutting their price targets for Under Armour ahead of its earnings report on Thursday have overshadowed the news. On Friday,  Susquehanna cut its price target on the company to $73 from $86 and the Robert W. Baird analysts cut their target to $95 from $115.

The bankruptcy judge for American Apparel Inc. approved the plan, which had already received the support of the company’s creditors. Founder Dov Charney’s testimony last week did little to sway the judge to push the company to accept his takeover bid.

Sears Holding Corp’s stock slid more than 6 percent to $16.87. A crowd-sourced stock rating company called Vetr cut its rating on the stock to sell from hold and set a $22.06 target price. Bruce Berkowitz continues to add to his shares with an additional 10,000 shares purchased on Jan. 20. The filing came out after the market close on Friday. Berkowitz now owns 71,700 shares of Sears.

Berkowitz’s Fairholme Capital Management is Sears’ largest outside shareholder. The investor has long supported chief executive officer Edward Lampert, but may be taking more of an activist role. The company disclosed in a filing late last year that it owned just over 26 percent of the retailer, or 27,763,748 shares.

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