NEW YORK -- The stock market fell Tuesday for a second straight session after government-sponsored mortgage company Fannie Mae, homebuilder D.R. Horton Inc. and Swiss bank UBS reported quarterly losses. A new record for crude oil prices also pulled stocks lower.
The disappointing first-quarter results from the financial and homebuilding industries suggested to investors that a rebound in the economy and corporate profits later this year might not come as easily as many have hoped.
In recent weeks, stronger-than-expected results from companies outside the battered financial and housing sectors helped the stock market rebound late last week to levels not seen since early January. But investors' confidence has eroded in the the past two sessions, with banks still on the mend and oil prices threatening to weigh on the consumer well into the summer.
Crude oil rose to a record $121.49 on the New York Mercantile Exchange - the first time oil has traded above $121 - due to the weakening U.S. dollar and the possibility of supply threats.
In mid-morning trading, the Dow Jones industrial average fell 92.41, or 0.71 percent, to 12,877.13.
Broader stock indicators also dropped. The Standard & Poor's 500 index fell 7.85, or 0.56 percent, to 1,399.64, and the Nasdaq composite index fell 16.28, or 0.66 percent, to 2,447.84.
Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, dipped to 3.81 percent from 3.87 percent late Monday.
Fannie Mae posted a quarterly loss of $2.2 billion and said it would lower its dividend and raise $6 billion in additional capital. Its shares fell $1.16, or 4.1 percent, to $27.13.
UBS reported a loss of nearly $11 billion and said it is reducing its work force by about 7 percent. UBS shares fell 99 cents, or 2.9 percent, to $33.32.
Meanwhile, Wachovia Corp. said it is nearly doubling its previously reported loss for the first quarter to $708 million after reviewing its portfolio of bank-owned life insurance. Wachovia's stock fell 61 cents, or 2 percent, to $29.18.
D.R. Horton reported a quarterly loss of $1.3 billion and halved its dividend to 7.5 cents a share. The homebuilder's shares fell 41 cents, or 2.6 percent, to $15.56.
Gold climbed, while the dollar fell against most other major global currencies.
The Russell 2000 index of smaller companies fell 4.24, or 0.59 percent, to 720.11.
Declining issues outnumbered advancers by about 2 to 1 on the New York Stock Exchange, where volume came to 191.8 million shares.
Overseas, Japan's stock market was closed for a holiday. By afternoon trading in Europe, Britain's FTSE index fell 0.92 percent, Germany's DAX index fell 0.98 percent, and France's CAC-40 fell 0.87 percent.
Walt Disney Co., one of the 30 companies that make up the Dow, and computer networking equipment maker Cisco Systems Inc. are scheduled to release quarterly results after the market closed Tuesday.
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