US stocks : Dow off 1 pct

The S&P 500 fell for a fourth day on Wednesday, weighed down by disappointing news from Chevron and Alcoa as earnings season got under way.

Chevron shares dropped 4.2 percent to $112.45 after it said third-quarter profits would be substantially lower than the previous quarter, while Alcoa fell 4.6 percent to $8.71 after it posted a quarterly loss. The company cut its outlook for global aluminum demand, citing a slowdown in China.

Both stocks are Dow components, and the blue-chip average posted its biggest daily percentage drop since early July.

The market is worried about what is going to happen with earnings, said Randy Warren, chief investment officer of investment advisory firm Warren Financial Service in Exton, Pennsylvania.

All expectations are for a softening.

The market continues to focus on weak global demand as S&P 500 companies' third-quarter earnings are expected to fall 2.9 percent from a year ago, according to Thomson Reuters data. It would be the first decline in three years.

Stocks briefly trimmed losses after the Federal Reserve's Beige Book showed the overall economy had expanded modestly, with most districts seeing strengthened home sales in the last month.

The Dow Jones industrial average fell 128.56 points, or 0.95 percent, to end at 13,344.97. The S&P 500 dropped 8.92 points, or 0.62 percent, to 1,432.56. The Nasdaq Composite lost 13.24 points, or 0.43 percent, to end at 3,051.78.

The declines in the Dow and the S&P 500 were partially offset by gains in Wal-Mart Stores Inc, which hit an all-time high, and FedEx Corp, which posted its largest daily advance this year.

Wal-Mart shares climbed 1.7 percent to $75.42 after hitting an all-time high of $76.81 as it cited strong sales at its U.S. grocery stores and a big start to holiday layaway sales in its annual meeting with analysts and investors.

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