NEW YORK (PNN) - April 13, 2010 - Stocks fell and Treasuries rose as disappointing sales at Alcoa Inc. and UBS AG’s downgrade of regional U.S. banks displayed one more example that the Depression is going strong and there is no economic recovery, despite what the propagandists would have people believe.

The Standard & Poor’s 500 Index lost 0.1% at 1:10 p.m. in New York as commodity producers and lenders led declines. The MSCI World Index slipped 0.3%. Oil dropped for a fifth day, falling below $84 a barrel, on forecasts for gains in supplies. Treasury 10-year yields slipped two basis points to 3.82%, near a three-week low, amid speculation the decline last week was unsustainable with inflation expectations subdued.

Alcoa, the largest U.S. aluminum maker, reported first-quarter sales that missed analysts’ estimates as the U.S. earnings season began after a 7.3% rally in the S&P 500 this year. Developed economies face the risk of deflation as growth slows and central banks end programs to revive financial systems, said Mihir Worah at Pacific Investment Management Co., the biggest holder of inflation-protected Treasuries.

“People are watching the earnings reports to get a better idea about the state of the economy,” said Mark Bronzo, an Irvington, New York-based money manager at Security Global Investors, which oversees $21 billion. “Investors today are reacting to Alcoa’s numbers. There’s also some nervousness that stocks have had a big run-up going into the earnings season.”