Tuesday

Investors retreated today as disappointing earnings and economic reports dampened yesterday's optimism over the strength of the recovery. July was the market's best month in a year, but many are concerned that the gains may have exaggerated the economic recovery. Today's weak readings on housing, consumer spending and factory orders have painted a murkier picture and prompted more caution in today's trading session. U.S. auto sales showed a modest improvement in July although the size of the gains were not as good as expected. This mixed picture comes as we await the government's key jobs report on Friday and a Federal Reserve meeting next week. DJIA -38.00 Nasdaq -11.84 S&P 500 -5.40.