Stocks slipped Tuesday morning as investors stepped back after the previous session's more-than-400-point rally on the Dow Jones industrial average.
It was the Dow's eighth-biggest one-day point advance ever. But the rally sparked no follow-up Tuesday as investors eyed a rash of mixed corporate earnings.
Third-quarter earnings are currently on track to have fallen almost 10% from a year ago, according to the latest estimates from tracking firm Thomson Reuters.
DuPont reported a big drop in earnings due to manufacturing disruptions in the wake of Hurricane Ike. The chemical giant also warned that full-year results won't meet forecasts. Shares fell 3%.
Caterpillar reported lower earnings and higher revenue versus a year ago, leaving shares little changed. Pfizer reported higher quarterly earnings that topped estimates. Shares gained 2%.
Another Dow component, American Express, reported weaker quarterly profit after the close of trade Monday. However, the results were better than expected and shares gained 4% early Tuesday.
Texas Instruments also reported reduced third-quarter profit after the close Monday and forecast fourth-quarter revenue would fall sharply, missing estimates. The chipmaker also said it is looking to sell part of its wireless operations.
Treasury prices rallied, lowering the yield on the 10-year note to 3.79% from 3.84% late Monday. Treasury prices and yields move in opposite directions.
The yield on the 3-month Treasury bill, seen as the safest place to put money in the short term, rose to 1.255% from 1.07% late Monday as investors began to pull money out of the safer investment and put it back in stocks.
Last week, the 3-month fell to below 0.2%. Last month, it fell to a 68-year low around 0% as investor panic hit its peak.
U.S. light crude oil for November delivery fell $3.25 to $71 a barrel on the New York Mercantile Exchange after hitting a 13-month low last week.
COMEX gold for December delivery fell $17 to $773 an ounce.