A rally on the stock market paused Wednesday after mixed earnings from U.S. companies added to fears about Europe's economic slowdown.
Several big consumer goods companies warned that weak demand in Europe was cutting into their revenue. That followed worrisome reports from the central banks of England and France, both of which released dire forecasts for economic growth in the coming months.
Major U.S. stock indexes were little changed in late morning trading following three straight gains. The Standard & Poor's 500 index edged up less than a point to 1,402 at 11:15 a.m., the Dow Jones industrial average rose 19 to 13,186 and the Nasdaq composite index declined four to 1,008.
The Dow had risen 290 points over the previous three trading days. On Tuesday, the S&P 500 passed 1,400 and the Nasdaq composite closed above 3,000, both for the first time since early May.
As stocks in New York traded tentatively, European stock indexes sank and the dollar rose against the euro, a sign that investors are becoming more fearful.
"It's not unusual for the market to pull back a bit after a strong move, absorb the latest earnings news and look to see the next catalyst to move higher," Quincy Krosby, market strategist with Prudential Financial, said.
The market is being held back in part by reports from consumer-goods companies that weak sales in Europe are hurting revenue, she said. Consumer discretionary stocks fell the most among the 10 industry groups in the S&P 500.
McDonalds fell $2.05, or 2 percent, to $86.95 after the company said a key revenue figure came in flat in July as the weakening global economy took a toll on customers of the world's biggest burger chain.
Priceline.com fell more than $100 after warning investors late Tuesday that its third-quarter revenue and income would come in far below anlaysts' forecasts because of the deepening malaise in Europe. Priceline's stock sank $108.20, or 16 percent, to $571.54 - the biggest decline in the S&P 500.
Ralph Lauren fell $5.42, or 4 percent, to $147.61 after the company forecast a revenue decline in the current quarter and cautioned that the weak global economy might reduce spending on its clothes and housewares.
"It's no longer a theoretical argument that Europe is hampering earnings for American companies," Krosby said. "It's a reality, and you're seeing that today."