The weakest sectors in the broad market, which saw every industry group in decline, were technology, capital goods, conglomerates and health care.
shares continued their recent weakness, losing 0.36% on the day, but the stock did bounce more than $10 off its session low of $623.55 to close at $635.85. The stock, which has pulled back roughly 10% since hitting an all-time high of $705.07 on Sept. 21, was initiated at neutral by Nomura on Tuesday.
Despite worries about earnings season, the market overall has remained strong to this point of 2012, with the major averages still sitting near record highs, and Kee of South Texas Money Management doesn't believe current valuations are dependent on a strong earnings season but rather signs that the eurozone is making progress in handling its debt issues.
"I think as Europe has kind of ring-fenced its financial problem to where it's less of a risk to the global financial system ... I think risk premiums, and consequently the discount rates have come down, and that's what's moved the markets."
The International Monetary Fund set a negative tone early on Tuesday with its latest world economic outlook, which was unveiled in Tokyo ahead of meetings there. The organization said it expects the global economy to grow 3.3% in 2012 and 3.6% in 2013, below prior forecasts of 3.5% and 3.9% respectively.
"Low growth and uncertainty in advanced economies are affecting emerging market and developing economies through both trade and financial channels, adding to homegrown weaknesses," said IMF Chief Economist Olivier Blanchard.
However, prospects could improve if clouds over the euro area and the U.S. "fiscal cliff" are lifted, the report added.
On the U.S. economic front Tuesday, the National Federation of Independent Business' small business optimism index fell to 92.8 in September from 92.9 in August, a slight disappointment with the consensus at 93.5.
The FTSE 100 in London finished down 0.54% and the DAX in Germany closed lower by 0.78% Tuesday.
The Nikkei Average in Tokyo finished down 1.06%. The Hang Seng in Hong Kong closed up by 0.54% after a big liquidity injection by China's central bank into the country's money markets.
November crude oil futures rose $3.06 to settle at $92.39 a barrel on rising Middle East tensions. December gold futures closed down $10.70 at $1,765 an ounce.
The benchmark 10-year Treasury jumped 10/32, diluting the yield to 1.717%. The dollar rose 0.48%, according to the