Midday Report: Morgan Stanley Backs Valeant; U.S. Stocks Fall

Stocks fell further from record highs as quarterly disappointments from Target (TGT) - Get Report and Lowe's (LOW) - Get Report brought down the cyclical consumer sector. Investors were also reluctant to move higher until the release of the Federal Reserve's July meeting minutes this afternoon. Crude oil cut all losses by midday following data that showed a larger-than-expected decline in domestic inventories. Domestic and international oversupply worries have recently weighed down crude prices.  Valeant Pharmaceuticals (VRX) shot higher after receiving an upgrade to OVERWEIGHT from EQUAL-WEIGHT at Morgan Stanley. The firm said shares should rebound as the drugmaker pays down its debt.  Urban Outfitters (URBN) - Get Report soared after reporting a better-than-expected second quarter thanks to profit growth. The apparel retailer cited substantial improvements to its merchandise margins as reason for the earnings bounce.