Dow closes down 207 for the day

Weak corporate earnings, new figures showing Americans are not in a shopping mood and reports that a key meeting between European financial ministers had been canceled pulled stocks lower Tuesday, ending a three-day rally.

Assets that tend to hold their value in a weak economy like U.S. government debt and gold rose.

All 10 industries in the Standard & Poor's 500 index sank during the day. It closed down 25.1 points, 2 percent, at 1,229.1. The Dow Jones industrial average closed off 207 points, or 1.7 percent, at 11,706.6. The Nasdaq dropped 61 points, or 2.3 percent, to 2,639.4.

Stock prices weighed down by several poor earnings reports from major U.S. companies. Manufacturing conglomerate 3M cut its 2011 earnings forecast, and U.S. Steel warned that demand for its products could slow. Netflix Inc. plunged 36 percent after the company cut its profit forecast and said it is losing subscribers following a price increase in July.

The market was also pulled lower by a report that consumer confidence plunged in October to the lowest level since March 2009. The Conference Board index measures how shoppers feel about business conditions, the job market and their outlook for the next six months.

Prices for assets perceived to be safe havens rose. The yield on 10-year Treasury notes fell to 2.18 percent from 2.23 percent late Monday. Bond yields fall when investors send their prices higher. Gold rose 3 percent.

The latest headlines from Europe cast doubt over whether leaders there can agree on a comprehensive solution for the region's debt crisis in time for a summit Wednesday. European officials are working to patch together a plan that will prevent banks from taking huge losses if the Greek government defaults on its bonds. A messy default could lead to a credit freeze similar to the one in 2008 following the fall of Lehman Brothers.