NEW YORK — U.S. stocks fell for a third straight day Tuesday as investors assessed some disappointing earnings reports.
Allstate slumped to its biggest loss in more than five years after reporting a drop in profits that was worse than Wall Street analysts had been expecting. NRG Energy was another company that disappointed investors, reporting a loss, when analysts had been expecting a small profit.
Stocks have been trading in a tight range for several weeks as investors wait to see whether the economy strengthens sufficiently for the Federal Reserve to raise its benchmark interest rate for the first time in more than nine years.
Investors, however, shouldn’t make the mistake of thinking that the market is in a summer slumber, said Kate Warne, an investment strategist at brokerage Edward Jones.
While energy stocks have plunged in response to falling oil prices, she noted that health care stocks are having a banner year.
“Stocks haven’t moved anyplace, but it’s because there’s been an equal mix of gainers and losers,” Jones said. “What we’re seeing is a back-and-forth market, not a doldrums market.”
The Standard & Poor’s 500 index dropped 4.72 points, or 0.2 percent, to 2,093.32. The Dow Jones industrial average dropped 47.51 points, or 0.27 percent, to 17,550.69. The Nasdaq composite fell 9.84 points, or 0.2 percent, to 5,105.55.
Allstate was among the biggest decliners in the S&P 500. The insurer dropped $7.04, or 10 percent, to $62.34 after reporting earnings that fell significantly short of analysts’ expectations. The company said its earnings dropped because of more frequent and more severe auto accidents.
A slump in Apple’s stock also weighed on the market. Apple dropped for a fifth straight day after falling below a closely followed level that traders use to gauge the momentum of a stock. The iPhone maker closed down $3.80 at $114.64 and has dropped 14 percent since closing at a record $133 on Feb. 23.
“This is an earnings stall, not an earnings decline,” said Jeremy Zirin, head of investment strategy at UBS Wealth Management.
In energy trading, the price of oil rose Tuesday, partially reversing Monday’s steep drop. U.S. crude rose 57 cents to close at $45.74 a barrel in New York, regaining some of the $1.95 it lost Monday. Brent crude, a benchmark for international oils used by many U.S. refineries, rose 47 cents to close at $49.99 in London.
