The Dow recorded its longest losing streak since late Septembers on Tuesday, as Wall Street closed lower after investors weighed when the Federal Reserve may begin to scale back its stimulus program.

Shares of Tesla Motors Inc. (NASDAQ:TSLA) soared more than 16 percent to close at $144.70 after the electric car maker announced it was cleared in a German investigation regarding recent fires involving its Model S sedan. In addition, Tesla also received a boost in its stock from Morgan Stanley after the firm said the company was its top choice out of the 26 stocks the firm covers in the American auto sector. Tesla’s stock climbed 0.11 percent to $144.86 in after-hours trading.

Meanwhile, shares of Apple Inc. (NASDAQ:AAPL) rose 2.74 percent to close at $566.32 after UBS upgraded its stock from “Neutral” to “Buy” and boosted its price target to $650 from $540. In separate news, Apple announced on Tuesday it purchased data-analytics firm Topsy Labs Inc., a search engine Twitter Inc. (NYSE:TWTR) partners with to analyze tweets. The tech giant’s stock edged up 0.37 percent to $568.41 after the bell.

In other news, J.C. Penney Company Inc. (NYSE:JCP) shares jumped 4.65 percent to $10.58 in extended-hours trading after the retailer reported a 10.1 percent increase in same-store sales in November.  Meanwhile, Krispy Kreme Doughnuts (NYSE:KKD) shares plunged 20.20 percent to close at $19.59 after the company disappointed investors on Monday and issued lower-than-expected EPS guidance in its quarterly earnings report. On Tuesday, shares of Krispy Kreme edged down 0.10 percent to $19.61 in after-hours trading.

Ahead on the economic  calendar, investors will be busy on Wednesday as they gear up to weigh a slew of data including the ADP employment report for November , trade deficit figures for October, ISM nonmanufacturing for November, new home sales for October and the Federal Reserve's Beige Book.

The Dow Jones Industrial Average dropped 94.15 points, or 0.59 percent, to close at 15,914.62. S&P 500 Index fell 5.75 points, or 0.32 percent, to end at 1,795.15. The Nasdaq Composite Index dropped 8.06 points, or 0.20 percent, to finish at 4,037.20.