Stocks turned lower today after an earnings warning from Eastman Kodak intensified the market's worries about third-quarter results.
At 1 p.m., the Dow Jones industrial average fell 147.98 to 10,660.17. The Nasdaq composite dropped 26.90 to 3,714.32 and the Standard and Poor's 500 stock index declined 7.50 to 1,431.53.
Dow component Kodak warned of disappointing profits, saying its business has been hurt by rising material costs and other factors. The photographic products manufacturer fell $12.88 to $46.13.
"The Dow is down because we got a warnings announcement from Eastman Kodak. In fact, that may be responsible for the whole move in the Dow," said Bill Barker, an investment strategy consultant at Dain Rauscher. "These earnings preannouncements are continuing to keep the market off balance, whether they're Kodak, Intel, DuPont or whoever.
"Investors are very nervous and reluctant to put money to work right away until we get through this."
With third-quarter earnings reporting season less than two weeks away, the market has been unloading stocks whose companies even warn of lower-than-expected profits. While Kodak has struggled in recent years amid intense competition in the film industry, its announcement Tuesday increased Wall Street's uneasiness about earnings.
Microsoft climbed $3.31 to $64.56 after the Supreme Court sent its dispute with the Justice Department to a lower appeals court in Washington, delaying a final resolution in the landmark case. Microsoft shares had fallen 48 percent this year as software sales for business and personal computers have slowed.
Lexmark International tumbled $13.06 to $38.94, a 25 percent drop, after the company warned of lower-than-expected third-quarter earnings and analysts at Paine Webber and Bear Stearns downgraded the stock.
Cisco Systems climbed 38 cents to $57.56 after ending Monday down, as did Sun Microsystems, up 50 cents to $118.50.
Oil service providers were also higher. Halliburton was up 77 cents at $47.50; Exxon Mobil climbed 90 cents to $86.75. The price of a barrel of sweet crude on the New York Mercantile Exchange was $31.58, a penny higher than Monday.