Stocks fell on Tuesday on a subpar start to earnings season following Alcoa Inc's worse-than-expected results and Chevron Corp's warning that its income would be sharply lower.
Alcoa is the first Dow index component to report, and the miss disappointed investors.
That disappointment was compounded when fellow Dow member Chevron
The S&P 500 had rallied for the last six days and for 13 out of the last 15. Both the Dow industrials and the S&P hit 15-month highs in the last session. The S&P had been on track to match a 1987 seven-day streak of gains to start a new year.
A lot of people will be reassessing the risk they have in their portfolios with regards to earnings, said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois.
The Dow Jones industrial average <.DJI> dropped 30.30 points, or 0.28 percent, to 10,633.69. The Standard & Poor's 500 Index <.SPX> fell 6.86 points, or 0.60 percent, to 1,140.12. The Nasdaq Composite Index <.IXIC> lost 18.87 points, or 0.82 percent, to 2,293.54.
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(Additional reporting by Leah Schnurr; Editing by Padraic Cassidy.)