Stocks fell sharply on Tuesday, more than wiping out the prior day's gains, with traders citing unease over the crisis between Russia and Ukraine and concerns the strengthening economy will lead to higher interest rates. The Dow Jones Industrial Average closed unofficially 139 points down, the S&P 500 lost 18 points and the Nasdaq shed 31 points. "The report today that Russian troops were lining on the borders of Ukraine preparing for an invasion -- whether accurate or not... was not helpful," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. There were also reports of heavy fighting in the Ukrainian city of Donetsk. Earlier, better-than-expected reports on the service sector and factory orders had investors weighing economic growth against an eventual hike in interest rates by the Federal Reserve. The Institute for Supply Management's service index climbed to 58.7 in July for its highest reading since December 2005, while a separate survey found orders for U.S. factory goods rising 1.1 percent in June.
- Kate Gibson, CNBC.com
First published August 5 2014, 6:45 AM