NEW YORK (USA TODAY)- Stocks tumbled Tuesday as the Dow fell nearly 118 points, ending the trading day below the 17,000 mark.
It was the second straight session of losses after the major indexes set record closing highs at the end of last week.
The Dow Jones industrial average lost 0.7% to 16,906.62. The Standard & Poor's 500 index fell 0.7% to 1963.71 and the Nasdaq composite index plunged 1.4% to 4391.46.
Investors turned cautious as they geared up for the start of second-quarter earnings season with aluminum producer Alcoa reporting after the market close. The aluminum giant blew past estimates, sending its stock up in the 2% neighborhood after hours.
Analysts polled by Thomson Reuters forecast profit growth of 6.2% for the Standard & Poor's 500 stock index, up from 5.6% last quarter. But heading into the week, the number of companies warning of profit shortfalls outnumbered those predicting upside earnings surprises by a 4 to 1 ratio, above the long-term average of 2.6 negative pre-announcements for every positive one.
Oil prices remained below $104 a barrel as the benchmark U.S. crude for August delivery was up 4 cents to $103.57 a barrel on the New York Mercantile Exchange.
The yield on the 10-year Treasury note fell to 2.57% from 2.61% Monday.
Overseas, Asian stock markets were mostly lower as Japan's Nikkei 225 index slipped 0.4% to 15,314.41 and Hong Kong's Hang Seng index was basically flat closing at 23,541.38.
European markets tumbled as London's FTSE index fell 1.3% to 6738.45 and Germany's DAX dropped 1.4% to 9772.67.
On Monday, the Dow fell 0.3% to 17,024.21. The S&P 500 fell 0.4% to 1,977.65. The Nasdaq composite index fell 0.8%, to 4451.53.