US stocks drop on disappointing earnings

The stock market fell Tuesday for a second straight session after mortgage lender Fannie Mae, homebuilder D.R. Horton Inc. and Swiss bank UBS reported quarterly losses. A new record for crude oil prices also pulled stocks lower.

The disappointing first-quarter results from the financial and homebuilding industries suggested to investors that a rebound in the economy and corporate profits later this year might not come as easily as many have hoped.

On the New York Mercantile Exchange Tuesday, crude oil rose $1.29 to a record $121.26, the first time oil has traded above $121.

In early trading, the Dow Jones industrial average fell 85.82, or 0.66 percent, to 12,883.72.

Broader stock indicators also dropped. The Standard & Poor's 500 index fell 7.87, or 0.56 percent, to 1,399.62, and the Nasdaq composite index fell 10.88, or 0.44 percent, to 2,453.24.

(Agencies)