Stocks Take a Tumble

Updated from 4:05 p.m. EDT

Stocks ended lower Tuesday, despite reassuring comments from Federal Reserve Chairman Alan Greenspan that interest rates would remain low for as long as necessary.

The Dow Jones Industrial Average ended down 48 points, or 0.5%, at 9128, while the Nasdaq fell 1 point, or 0.1%, to 1753. The S&P 500 shed 3 points, or 0.3%, to 1000.

"We're priced for perfection," said Peter Blatchford, a trader at Miller Tabak. "[Greenspan] said some positive things, but we've run up a long way." Blatchford added that while earnings have been respectable so far, companies are only meeting lowered estimates. "[Second-quarter] earnings are going to be fine because we didn't have many warnings, but guidance on the second half of the year is going to be key," he said. ...