Worries for Apple and Bank of America hit US stock market

As evidence of a slowing global economy grows, investors are showing some caution just one week after US stocks hit an all-time high.

Stocks fell after lacklustre earnings from Bank of America and an apparent drop in demand for Apple's iPod and iPhone dragged financial and technology stocks lower.

New signs of weakness in Europe, where car sales are plunging and unemployment is rising, also weighed on the market.

On Monday, stocks sank after China reported economic growth that was slower than economists had expected. Metals, energy and other commodities have been hit hard this week and that has dragged down the stocks of miners and drillers and companies that provide services to them. Gold fell the most in 30 years.

The Dow Jones Industrial average fell 138 points, or 0.9%, to 14,618.59 yesterday, wiping out most of the gain it made on Tuesday.

The Dow, which reached an all-time high of 14,865 last Thursday, is down 1.7% this week after slumping 265 points on Monday.

The Standard & Poor's 500 index dropped 22 points, or 1.4%, to 1,553 and is 2.2% lower since the opening bell on Monday. The S&P is 2.5% below its all-time high of 1,593.

Energy companies and miners fell as commodity prices extended their declines.

Despite the big drops this week, the Dow is still 11.6% higher this year, the S&P 500 index 8.8%. And while falling energy prices may hurt energy stocks now, in the long run they should put more money into the pockets of consumers and drive spending.

Stocks surged during the first three months of the year on optimism that a recovery in the housing market would boost the economy.

But the stock market has struggled this month, and reports of weak hiring and retail sales suggested the economy may be cooling off.

"You've had numerous economic data points that have been, not really disastrous, but not really as robust as people might like," said Cam Albright, director of asset allocation at Wilmington Trust Investment Advisors.

"When you have a market as extended as this, you almost need perfect information to make it continue to go up."