Stocks fell Tuesday in a broad-based sell-off, after Alcoa"s worse-than-expected quarterly report and Chevron"s profit warning made investors nervous at the beginning of a corporate profit reporting period expected to show strong growth. The U.S. Federal Reserve (Fed) made record profits last year, due to money made by its extraordinary efforts to stabilize the financial system. The central bank earned $52.1 billion in profits last year, sending $46.1 billion to the Treasury. In economic news, the U.S. trade deficit in November widened more than expected to $36.4 billion, the government reported. The U.S. dollar gained versus the euro and fell versus the yen. Light sweet crude oil for February delivery fell $1.73 to $80.79 a barrel on the New York Mercantile Exchange. Gold fell $22 to $1,129.40 an ounce. The Dow Jones industrial average fell 36.73, or 0.3 percent, to 10,627.26. Alcoa reported a smaller-than-expected profit, and shares of the aluminum maker plunged 11 percent. Chevron warned late Monday that sharply lower fourth-quarter refining profits would limit its results. Refining margins have been pressured because the rising price of oil is not consistent with weaker global demand. Chevron shares fell 1 percent. The broader Standard & Poor"s 500 index fell 10.76, or 0.9 percent, to 1,136.22. The technology-heavy Nasdaq composite index fell 30.10, or 1.3 percent, to 2,282.31. The New York Stock Exchange composite index fell 78.51 to 7,370.54. The American Stock Exchange composite index fell 8.68 to 1,874.34. And the Russell 2000 index fell 8.49 to 635.50.
