NEW YORK (AP) - U.S. stocks fell for a third straight day Tuesday as investors assessed some disappointing earnings reports.
Allstate slumped to its biggest loss in more than five years after reporting a drop in profits that was worse than Wall Street analysts had been expecting. NRG Energy was another company that disappointed investors, reporting a loss, when analysts had been expecting a small profit.
Stocks have been trading in a tight range for several weeks as investors wait to see if the economy strengthens sufficiently for the Federal Reserve to raise its benchmark interest rate for the first time in more than nine years. Investors shouldn't make the mistake though of thinking the market is in a summer slumber, said Kate Warne, an investment strategist at brokerage Edward Jones.
While energy stocks have plunged in response to falling oil prices, she noted, health care stocks are having another banner year.
The Standard & Poor's 500 index dropped 4.72 points, or 0.2 percent, to 2,093.32. The Dow Jones industrial average dropped 47.51 points, or 0.3 percent, to 17,550.69. The Nasdaq composite fell 9.84 points, or 0.2 percent, to 5,105.55.
Allstate was among the biggest decliners in the S&P 500. The insurer dropped $7.04, or 10 percent, to $62.34 after reporting earnings that fell significantly short of analysts' expectations. The company said its earnings dropped because of more frequent and more severe auto accidents.