US STOCKS fell on Tuesday

U.S. stocks fell, snapping the longest rally in the Standard & Poor’s 500 Index since January, as Coca-Cola Co.’s profit dropped and a Federal Reserve official called for cuts to stimulus.

The S&P 500 fell 0.5% to 1,673.46, the first decline in nine sessions. The Dow Jones Industrial Average lost 54 points, or 0.4%, to 15,429.93.

The S&P 500 (SPX) extended losses after Fed Bank of Kansas City President Esther George said the U.S. was on the “right path” for economic recovery and that cuts in the pace of stimulus are “appropriate.” George, speaking on Fox Business Network, also said inflation appears to be “moderate” and the benchmark interest rate should not be held too low for too long.

A report today showed the cost of living in the U.S. rose in June as gasoline prices increased the most in four months. The consumer-price index increased 0.5% after a 0.1% gain the prior month, Labor Department figures showed. The median forecast called for a 0.3% rise.

Separate data showed that industrial production rose in June by the most in four months, signaling U.S. manufacturing is improving heading into the second half of the year. Output at factories, mines and utilities climbed 0.3 percent, the biggest advance since February, after being little changed in May.

Coca-Cola slid 1.4% as the beverage company said volumes missed estimates amid slowing economic growth. 

Goldman Sachs Group Inc. dropped 1.9% even after profit beat analysts’ projections. 

Cintas Corp. retreated 1.9% after the uniform maker forecast earnings for the current fiscal year that were below estimates. 

Johnson & Johnson lost 0.2% as profit more than doubled and the company boosted its earnings forecast.

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