U.S. stocks lower on earnings, EU worries

• Tweet

NEW YORK, July 10 (UPI) -- U.S. stocks dropped Tuesday on corporate earnings concerns and mixed financial messages out of Europe.

The Dow Jones industrial average fell 83.17 points, 0.7 percent, to 12,653.12 by the day's closing bell.

The Standard & Poor's 500 index was down 10.99 points, 0.8 percent, to 1,341.47.

The Nasdaq Composite Index lost 29.44 points, 1 percent, to 2,902.33.

Analysts said initially stocks received a boost in response to Alcoa's lower but better-than-expected, second-quarter earnings report. News the European Commission reached an agreement on aid for Spain lifted the market early, but the rally fell flat as concerns were raised about Italy's potential need for support from Europe's permanent bailout fund.

Forecasts for lower second-quarter earnings were bolstered when engine maker Cummins Inc. reduced its sales forecast, analysts said. Advanced Micro Devices also cut its second-quarter revenue forecast, The Wall Street Journal reported

There were 1,026 advances and 2,006 declines on the New York Stock Exchange. The composite volume was 3.48 billion shares.

The 10-year U.S. treasury bonds rose 3/32 to yield 1.507 percent.

The euro fell to $1.2252 from Monday's $1.2298. Against the yen, the dollar was 79.42 yen from Monday's 79.43.

In Tokyo, the Nikkei 225 index gave up 0.44 percent, 39.15 points, to 8,857.73. In London, the FTSE 100 was up 43.01, 0.76 percent, to 5,670.34.