NEW, LOW PRICES: American Eagle plunged 12 percent after the retailer slashed its earnings forecast in half late Monday, blaming weak sales. Two of American Eagle's rivals, Abercrombie & Fitch and Urban Outfitters, also dropped.
BIG BLUES: IBM lost 2 percent following reports that the company would require some workers to take time off this month as hardware sales slow. Credit Suisse also cut its rating on the company.
FINAL SCORE: The Dow Jones industrial average fell 93.39 points, or 0.6 percent, to close at 15,518.74. The S&P 500 index lost 9.77 points, or 0.6 percent, to 1,697.37.