U.S. stocks tumble on downbeat earnings

U.S. stocks suffered big losses Tuesday as Alcoa Inc. kicked off the third quarter earnings season by missing estimates on both the top and bottom line.

The Dow Jones Industrial Average dropped 200.38 points, or 1.09 percent, to 18,128.66. The S&P 500 lost 26.93 points, or 1.24 percent, to 2,136.73. The Nasdaq Composite Index slumped 81.89 points, or 1.54 percent, to 5,246.79.

Before Tuesday's opening bell, Alcoa Inc. announced net income of 166 million U.S. dollars, or 0.33 dollar per share for the third quarter of 2016, on revenues of 5.21 billion U.S. dollars.

Shares of the U.S. aluminum giant plunged 11.42 percent to 27.91 dollars apiece Tuesday after the release of the disappointing results.

The latest data from Thomson Reuters showed that the S&P 500 companies' blended earnings in the third quarter of 2016 are expected to decline 0.7 percent year on year, while the revenues are forecast to increase 2.4 percent.

The falling oil prices also weighed on the market. Oil prices retreated Tuesday after mixed responses from Russian oil industry leaders toward an output-cut deal proposed by the Organization of the Petroleum Exporting Countries.

There is no major economic data due Tuesday. Investors will keep a close eye on the Federal Reserve's minutes from its September meeting scheduled for release on Wednesday, for more clues on the timing of a next rate hike.

European equities also declined Tuesday amid oil weakness. German benchmark DAX index at Frankfurt Stock Exchange fell 0.44 percent, while British benchmark FTSE 100 Index dipped 0.38 percent.

In Asia, Chinese stocks rose Tuesday boosted by the government's debt-reduction plan that will accelerate the consolidation of state-owned companies. The benchmark Shanghai Composite Index added 0.56 percent to 3,065.25 points. Endit