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New York - US stocks posted modest losses Wednesday as investors weighed disappointing earnings from Disney and a wider-than-expected US trade deficit.
The Dow Jones Industrial Average dropped 74.93 points (0.59%) to 12,685.43 1500 GMT.
The broader S&P 500 index lost 6.58 points (0.48%) at 1 350.58, while the tech-heavy Nasdaq Composite fell 6.77 points (0.24%) to 2 865.12.
The retreat came after three sessions of solid gains by the major indices.
Stocks were under pressure "as traders digest some mixed earnings reports, a disappointing read on the US trade deficit, and inflation concerns out of China and the UK," Charles Schwab analysts said in a client note.
The US trade deficit widened more sharply than expected in March, thanks in part to rising prices on imported oil.
Investors also weighed Chinese data showing the speed of inflation eased slightly in April but remained well above the government target.
The news raised concerns the authorities will take further steps to cool booming growth in the world's second-largest economy, pushing crude oil prices lower.
ExxonMobil, the Dow's biggest blue-chip, fell 1.7% to $81.49.
Disney, another Dow component, was under pressure after reporting lower profit for its fiscal second quarter, sharply under market estimates.
Disney shares dropped 3.8% to $42.24.
Insurer American International Group soared 4.6% to $30.98. The US government and AIG announced a plan to sell around $9bn worth of shares in the bailed-out insurance giant, speeding the firm back toward private ownership.
Bond prices fell. The yield on the 10-year Treasury note rose to 3.22% from 3.20% late Tuesday, while that on the 30-year bond climbed to 4.35% from 4.33%.
Bond yields and prices move in opposite directions.
