Wall Street is down this morning on concerns of rising consumer loan delinquencies, as well as fears about the upcoming earnings season. Companies will start reporting how they did in the second quarter on July 8.

The primary question over earnings season is whether corporations’ reports will justify the gains the markets have made in the last three months, Jack Healy for The New York Times notes. One strategist says that the economy has moved from less-bad territory, but it struggles to edge into “good.” Analysts think that with an increasing savings rate and stagnant earnings, corporate revenue will flat-line or fall.

Investors are also watching the G-8 Summit meeting this week to see what world leaders have to say about the economy, as well.

Consumer loan delinquencies are up to a record high in the first quarter, thanks to unrelenting unemployment. The American Bankers Association has been tracking the numbers since the mid-1970s, reports Stephen Bernard for the Associated Press. A delinquent payment is defined as 30 days past due.

In positive news, the service sector contracted less than expected in June, reaching its highest level in nine months. The reading is now 47, up from 44. A reading below 50 indicates contraction, and June was the ninth consecutive month of shrinkage.

President Barack Obama has wrapped up his two-day visit to Russia, calling for more business deals between U.S. and Russian companies. Market Vectors Russia (RSX) is down 4.8% in the last week, but up 53% year-to-date.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.