US stocks fell on Tuesday after a weak auto sales report pulled the Dow and S&P back from their latest records and the Nasdaq dipped below 5,000 the day after scaling the milestone level for the first time in 15 years. Investors exercised caution after a strong run for major indexes in February and ahead of a slew of economic data later this week, culminating with the monthly payrolls report.
For the second year in a row, tough winter weather slowed US vehicle sales in February, with several major automakers missing analysts' projections and dampening bullish expectations. "The air gets a little thin up at new highs and you need a driver to keep it going, and one of the things we are not getting as a driver today is solid auto sales," said Art Hogan, chief market strategist at Wunderlich Securities in New York.
US-listed Fiat Chrysler shares fell 3.7 percent to $15.24 while Ford Motor declined 2.8 percent to $16.10. General Motors managed dropped 0.23 percent to $37.51. The Dow Jones industrial average fell 130.37 points, or 0.71 percent, to 18,158.26, the S&P 500 lost 16.29 points, or 0.77 percent, to 2,101.1 and the Nasdaq Composite dropped 47.12 points, or 0.94 percent, to 4,960.97. The Nasdaq decline was led by Microsoft Corp while Visa Inc weighed most on the Dow. Seagate Technology and Micron Technology were the worst performers in the S&P 500.
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