NEW YORK (TheStreet) -- U.S. stock markets finished at session lows Tuesday after being pressured lower by a ramp-up of tensions in Ukraine. Better-than-expected economic data failed to help the S&P 500 sustain a recovery from last week's worse slump in two years.
Time Warner (TWX - Get Report) shares were plummeting in afterhours trading after Fox (FOXA - Get Report) withdrew its bid for Time Warner. Shares Time Warner dropped as much as 12% in afterhours trading, near down to where they stood on July 17 when Fox made it unsolicited bid.
The Dow Jones Industrial Average fell 0.84% to 16,429.47. The S&P 500 declined 0.97% to 1,920.21. The Nasdaq was down 0.71% to 4,352.83.
All 10 major sectors of the S&P 500 closed lower, with energy, basic materials, financials, telecom services and utilities all shedding more than 1%. Consumer staples and industrials outperformed the broader market but still settled in the red.
Traders pointed to news reports of a buildup in Russian troops on the Ukraine border and comments from a Polish politician that said Russia is poised to invade or pressure militarily Ukraine's eastern border. Factory orders in June rebounded by a stronger-than-expected 1.1% in June after a 0.6% decline in May. The composite index from the ISM non-manufacturing survey in July rose to a better-than-expected 58.7 from 56 in June. The final read on the Markit PMI services index for July slipped to 60.8 from the initial "flash" estimate of 61, but remained comfortably above the breakeven 50 mark.
A host of companies were in the spotlight Tuesday. Walt Disney (DIS) was gaining 1.38% to $87.80 in afterhours trading after beating fiscal third-quarter earnings by 11 cents at $1.28 a share. Groupon (GRPN) also reported after the markets close, and was plummeting 14.27% to $6.08 after its loss widened in the second quarter.
Target (TGT) slumped 4.4% to settle at $58.03 after cutting its second-quarter earnings outlook, reflecting flat U.S. same-store sales, softer-than-expected sales in Canada, and data breach expenses of $111 million. American International Group (AIG) was down 0.87% to $52.20 after reporting on Monday that second-quarter net income rose 13%, topping analysts' expectations.
Coach (COH), a seller of premium handbags, popped 4.34% to $35.80 after beating fourth-quarter earnings expectations by 6 cents at 59 cents a share as international sales increased 7%. Toyota TM was up 0.77% to $119.03 after reporting on Tuesday a 5% increase in quarterly profit, topping expectations as vehicle sales rose in North America and Europe, offsetting a drop in Japan. CVS (CVS) was slightly lower at $77.27 after the drugstore operator topped the consensus by 3 cents at $1.13 a share and hiked its full-year outlook.
BlackBerry (BBRY) concluded a protracted and painful restructuring and is back on a growth footing, according to an internal memo to all its employees viewed by Reuters. Shares gained 2.19% to $9.35.Goldman Sachs (GS) is upending the way it does business with hedge funds, jettisoning less-profitable clients and increasing some fees on others as it adapts to new banking rules, people familiar with the matter told The Wall Street Journal. Goldman shares were off 1.32% to $169.42. Gannett (GCI) fell 1.31% to $33.87 after the media giant said it plans to spin off its print business to create two publicly-traded companies; one focused on its broadcasting and digital businesses and the other on its publishing business. The company also signed on to acquire full ownership of Cars.com.
A big move to the downside like the one from last week is often followed by a retest of key levels.
"It wouldn't surprise me to see us go back down one more time to test that 1920ish area on the S&P 500," said JJ Kinahan, chief derivatives strategist at TD Ameritrade. "As long as you can do that, it sets your base to go higher."
-- By Andrea Tse in New York