U.S. Stocks Fall on Retail Earnings as Small-Caps Retreat

U.S. stocks fell, halting a two-day gain, as retailers from Staples Inc. to Urban Outfitters Inc. posted worse-than-estimated results and smaller companies slid.

Staples tumbled 13 percent after forecasting second-quarter profit that was less than analysts estimated. Urban Outfitters sank 8.8 percent as earnings missed forecasts. Caterpillar Inc. led industrial shares lower after reporting a steepening decline in retail machine sales.