Dow falls 167 points following disappointing retail report

Nov. 17 (UPI) -- The Dow Jones Industrial Average and S&P 500 fell for the first time in three days Tuesday after they both reached record highs Monday.

The blue-chip index dropped 167.09 points, or 0.56% after drawing nearer to 30,000 points on Monday. The S&P 500 fell 0.45% and the Nasdaq Composite slid 0.2% as markets cooled off following a rally in response to optimism surrounding a COVID-19 vaccine.

Markets responded to a Commerce Department report that U.S. retail sales fell short of expert predictions, growing 0.3% in October.

Home Depot shares fell 2.54% and Walmart dropped 2.17%.

"Waning momentum in consumer activity highlights the lingering fragility of individuals and households as local restrictions and safety protocols continue to impact incomes, revenues and opportunities," Lindsey Piegza, chief economist for Stifel, told MarketWatch.

Pharmacy chains Walgreens Boots Alliance and CVS Health Corp also took a hit Tuesday, dropping 9.63% and 8.59% respectively as Amazon announced it would launch its own pharmacy service that would provide free delivery of medication for Prime members. Amazon shares rose 0.15% following the news.

Tesla stock climbed 8.21% after it was announced the company would join the S&P 500 index on Dec. 21.

Tuesday's losses came after the Dow climbed to 29,950 points Monday after Moderna and Pfizer both announced positive data surrounding the effectiveness of their COVID-19 vaccine candidates.

"We just reached new highs, so it's natural for the market to take a breather and the slightly disappointing read on the retail sales front is facilitating that," Chirs Larkin, managing director of trading and investment product at E-Trade, told CNBC. "Without stimulus checks coming in, there's a bit of uncertainty in this sector in the short term."