NEW YORK (TheStreet) -- U.S. stocks dropped on Tuesday as lackluster corporate earnings reports and a tepid outlook for European growth offset an upbeat U.S. services sector report.
With stocks at near all-time highs, investors took profits on Tuesday as attention turns to government data on jobs and economic growth scheduled for later in the week. The Commerce Department is scheduled to issue its initial estimate of third-quarter growth on Thursday, and the Labor Department is slated to release its job report on Friday.
Forecasts from the European Commission on Tuesday suggested the eurozone economy would expand by 1.1% in 2014 and are down from a 1.2% growth forecast in May, when more bullish assumptions were made on private consumption and investment.
In company news, Tenet Healthcare (THC) tumbled 8.8% to $44 after the healthcare services company reported a decline in third-quarter net income to $28 million from $40 million a year ago driven partly by costs tied to its $4.3 billion purchase of Vanguard Health Systems.
Expeditors International of Washington (EXPD) slumped 6.2% to close at $43.41 after the global logistics company reported third quarter earnings of 45 cents a share on revenue of $1.54 billion, missing the average analyst estimate of 49 cents a share on revenue of $1.59 billion.
Delphi Automotive (DLPH) shed 3% to $55.01 after the vehicle components manufacturer cut the upper end of its 2013 adjusted earnings per share forecast to $4.35 from $4.45 and the top end of its revenue guidance range to $16.4 billion from $16.5 billion as European sales continued to decline.