The Dow and S&P 500 slipped on Thursday, with the S&P retreating from the previous session's record high, after earnings from Goldman Sachs and other banks disappointed investors.
Financials were the biggest drag on the market after both Goldman Sachs Group Inc and Citigroup Inc reported that lower bond trading revenue took a bite out of their quarterly profits. Goldman's earnings fell 21 percent. Citigroup's profit missed expectations.
The results followed fairly positive reads on the financial sector with earnings from Bank of America Corp, JPMorgan Chase & Co and Wells Fargo & Co earlier this week.
Goldman's stock slid 2 percent to close at $175.17. It was the biggest drag on the Dow. Citigroup's stock dropped 4.4 percent to end at $52.60 and was the biggest negative for the S&P 500. The S&P financial sector index fell 0.6 percent, making it the biggest loser among the 10 sectors in the S&P 500.
Analysts said that given the S&P 500's gain of 30 percent last year, the market doesn't need much of a catalyst for selling.
"You get a day like today with a little disappointment following a day when the market was up big, and we get a selloff like this," said Bucky Hellwig, senior vice president of BB&T Wealth Management in Birmingham, Alabama.
Concerns that stock valuations may be too high put some pressure on stocks after last year's rally. But the S&P 500 index surged 1.6 percent over the previous two sessions on results and economic data to close at a record high on Wednesday, its first since Dec. 31.
The Dow Jones industrial average fell 64.93 points or 0.39 percent, to end at 16,417.01. The S&P 500 slipped 2.49 points or 0.13 percent, to finish at 1,845.89. The Nasdaq Composite added 3.805 points or 0.09 percent, to close at 4,218.688.
Though the earnings season has just started, companies are beating expectations at a rate that's below the long-term average. With earnings from 6 percent of the S&P 500 companies so far, 48 percent have exceeded expectations, below the historical average of 63 percent for a full season, Thomson Reuters data showed.
INTEL, AMERICAN EXPRESS