Wall Street fell from record levels on Monday as gains in Microsoft and other technology stocks failed to offset a drop in General Electric and a slide in healthcare stocks.
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The S&P healthcare index <.SPXHC> moved 0.67 percent lower, weighed by a 3.61-percent slide in Medtronic
The S&P 500 has rallied 14 percent in 2017 and last week hit record highs, buoyed by strong company earnings and enthusiasm that President Donald Trump will cut corporate taxes.
"Unlike the restaurant chains, movie chains and homebuilders and some of the discretionary stocks hurt by the hurricanes, I don't expect the banks to be affected by the non-recurring blips during the quarter," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
Overall, earnings at S&P 500 companies are expected to have increased 4.8 percent last quarter, according to Thomson Reuters data, down from the double-digit growth recorded in the first two quarters of this year.
The Dow Jones Industrial Average <.DJI> declined 0.06 percent to end at 22,761.07, while the S&P 500 <.SPX> lost 0.18 percent to 2,544.73.
The Nasdaq Composite <.IXIC> dropped 0.16 percent to 6,579.73.
The CBOE Volatility index <.VIX> - Wall Street's fear gauge - rose 0.77 point to 10.42, its highest in two weeks.
Shares of cinema stocks AMC Entertainment Holdings
Also weighing on the healthcare sector, Express Scripts
Declining issues outnumbered advancing ones on the NYSE by a 1.21-to-1 ratio; on Nasdaq, a 1.49-to-1 ratio favored decliners.
About 4.4 billion shares changed hands on U.S. exchanges, well below the 6.1 billion daily average for the past 20 trading days, according to Thomson Reuters data.
(Additional reporting by Sruthi Shankar in Bengaluru; Editing by James Dalgleish)