Dow Jones:12,479.88 (-26.11) Nasdaq:2,825.88 (+5.72) S&P 500:1,335.25 (-2.13)

IN THE lightest volume session of the year, US stocks fell after a lowered outlook from Kimberly-Clark heightened concerns about higher commodity costs squeezing profits in coming quarters.

About 5.34 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below the daily average of 7.74 billion.

Kimberly-Clark fell 2.7 per cent to $64.24 after it cut the low end of its full-year outlook because the costs of pulp and other goods rose more than twice as much as it had expected.

The threat of rising commodity costs will remain in the spotlight for one of the busiest weeks of earnings, with 180 S&P 500 companies scheduled to report this week, including other major consumer names like Procter Gamble and Colgate-Palmolive.

Kimberly-Clark, maker of Kleenex tissue and Huggies disposable nappies, is among companies highly vulnerable to rising commodity costs because its products contain oil-based materials and paper.

The Dow Jones industrial average dropped 26.11 points, or 0.21 per cent, to 12,479.88. The S&P 500 shed 2.13 points, or 0.16 per cent, to 1,335.25. The Nasdaq gained 5.72 points, or 0.20 per cent, to 2,825.88.

Johnson Controls fell 2.8 per cent to $39.60 after the company, one of the world’s largest auto suppliers, said its fiscal third-quarter results would be hit by a drop in car production following Japan’s massive earthquake last month. The earthquake has disrupted the supply of auto parts and forced auto companies to idle plants.

The Nasdaq edged higher, boosted by SanDisk, up 1.6 per cent at $49.78 after raising its 2011 margin outlook late on Thursday.

This week is another hectic one for earnings, including Amazon.com, Coca-Cola Co and Microsoft, along with a host of energy companies such as Exxon Mobil and Chevron

Declining stocks outnumbered advancing ones on the NYSE by 1,640 to 1,379. – (Reuters)