U.S. stocks fall on earnings

U.S. stocks drifted lower in the morning session on Wednesday, as investors assessed disappointing corporate earnings.

By noon, the Dow Jones Industrial Average was down 116.41 points, or 0.65 percent, to 17,811.94. The S&P 500 shed 9.02 points, or 0.43 percent, to 2,075.37. The Nasdaq Composite Index fell 14.76 points, or 0.31 percent, to 4,795.12.

Shares of Disney dropped over 4 percent in the early trading Wednesday, after the company reported worse-than-expected quarterly profit and revenues.

The Walt Disney Company reported Tuesday after the close bell quarterly earnings of 2.1 billion U.S. dollars for its second fiscal quarter ended on April 2, 2016. Diluted earnings per share for the quarter increased 6 percent to 1.30 dollars from 1.23 dollars in the prior-year quarter.

Macy's posted the first-quarter 2016 earnings of 37 cents per diluted share Wednesday. Shares of Macy's plunged 13.14 percent around midday session.

"We are seeing continued weakness in consumer spending levels for apparel and related categories. In particular, our sales trend relative to expectations meaningfully slowed beginning in mid-March, and first quarter results are below our original outlook," said Terry J. Lundgren, Macy's chairman and chief executive officer.

"Headwinds also are coming from a second consecutive year of double-digit spending reductions by international visitors in major tourist markets where Macy's and Bloomingdale's are key destinations, as well as a slowdown in some center core categories -- further intensifying the challenges associated with growing topline sales revenue," Lundgren added.

U.S. stocks posted solid gains Tuesday following a global equity rally, as investors cheered over a strong rebound in oil prices. Enditem