US stocks drop as investors assess earnings, deals

NEW YORK (AP) - U.S. stocks dropped on Tuesday for the first day in five as investors assessed company earnings and the latest corporate deal news. More evidence of weakness in China's economy also unsettled the market.

Ryder System led industrial stocks lower after the transportation and logistics company cut its profit forecast for the third quarter. Molson Coors surged on speculation that a tie-up between the world's two largest brewers would give it an opportunity to expand its own business.

The stock market started October with strong gains, rebounding from a big slump in the previous two months as investors worried about a slowing Chinese economy. This week investors are focusing on corporate earnings as they try and measure the impact that slowing global growth is having on profits.

Companies that are focused on the U.S. are likely to do well as consumer confidence improves, said Jerry Braakman, chief investment officer of First American Trust.

The Standard & Poor's 500 index fell 13.77 points, or 0.7 percent, to 2,003.69. The Dow Jones industrial average declined 49.97 points, or 0.3 percent, to 17,081.89. The Nasdaq composite dropped 42.03 points, or 0.9 percent, to 4,796.61.