U.S. stocks fall after rally of record highs

Nov. 12 (UPI) -- U.S. stocks fell Tuesday after reaching record highs for two days after a better-than-expected jobs report. Stocks retreated in response to disappointing earnings and in anticipation of the Federal Reserve easing back their bond-buying program in response to positive reports on overall economic growth.

The Dow Jones industrial average fell 0.2 percent, or 32.43 points to 15,750.67.

Earnings released Tuesday fell short of investor expectations, primarily in energy and financial markets, pushing down the S&P 500 down 0.2 percent, or 4.2 points. NRG Energy Inc. shares fell 3.5 percent after forecasting earnings.

The Nasdaq Composite Index remained relatively flat, and overall, the market was not far off from their reported highs.

Dallas and Atlanta branches of the Federal Reserve both warned about tapering, with Atlanta Fed President announcing it could be as soon as December. The Friday jobs report indicated an added 204,000 jobs in October, more than the expected 125,000 jobs.

Data showed that the economy grew 2.8 percent, compared with an expected 2.0 percent.

But Minneapolis Fed President argued that the labor market was still too weak for the Fed to ease policy.

Janet Yellen, President Obama's nominee for Federal Reserve chair, will testify to Congress Thursday in a nomination hearing.