By Ryan Vlastelica
NEW YORK (Reuters) - Stocks fell on Tuesday, dropping in a broad selloff as a weak outlook from courier company UPS weighed on sentiment and pressured transportation stocks.
Although a rally in telecom stocks helped to limit the broader market's decline, the S&P 500 ended below its 14-day moving average for a second straight day. Nine of the 10 primary S&P 500 sectors fell on the day.
United Parcel Service
Rival shipping company FedEx Corp
UPS is the latest bellwether name whose results have disappointed investors, following Amazon.com Inc
With more than half the S&P 500 having reported already, almost 70 percent have topped earnings expectations, according to Thomson Reuters data, well above the long-term average of 63 percent. More than 63 percent have topped revenue forecasts, above the long-term average of 61 percent.
"If we started to see more negative outlooks, that would be a reason to pause, but so far this earnings season speaks to the health of corporate America and suggests markets still have room to run," said David Lebovitz, global market strategist at J.P. Morgan Funds in New York.
Telecom stocks <.SPLRCL> were the only sector of the market to rise on Tuesday, adding 2.2 percent after Windstream Holdings
After the market closed, Twitter Inc
Dow component American Express Co
The Dow Jones industrial average <.DJI> fell 70.16 points, or 0.41 percent, to 16,912.43, the S&P 500 <.SPX> lost 8.93 points, or 0.45 percent, to 1,969.98, and the Nasdaq Composite <.IXIC> dropped 2.21 points, or 0.05 percent, to 4,442.70.
The Nasdaq's decline was tempered by biotechnology shares, with the Nasdaq Biotech index <.NBI> up 1.1 percent.
Dow components Pfizer
Economic data had little impact on the direction of equities.
U.S. consumer confidence jumped in July to a high not seen since October 2007, but single-family home prices fell 0.3 percent in May on a seasonally adjusted basis, falling short of expectations.
President Barack Obama said the United States was imposing new sanctions on Russia in the energy, arms and finance sectors, following similar moves by the European Union in reaction to Moscow's support for rebels in eastern Ukraine.
About 57 percent of stocks traded on the New York Stock Exchange closed lower on the day while about 47 percent of Nasdaq-listed shares ended in negative territory. About 5.59 billion shares traded on all U.S. platforms, according to BATS exchange data, compared with the month-to-date average of 5.54 billion.
(Editing by Meredith Mazzilli; Editing by Leslie Adler)