U.S. stocks fell amid concern that the pace of economic growth is slowing, even as a survey showed a rebound in consumer confidence.
The Dow Jones industrial average fell 172.98, or 2 percent, to 8676.42, and the Nasdaq composite index fell 37.47, or 2.5 percent, to 1444.43. The Standard & Poor's 500-stock index fell 19.57, or 2.1 percent, to 913.31.
Gross domestic product, the value of all U.S. goods and services, will expand at a 1.6 percent annual rate in the fourth quarter, according to economists surveyed by Blue Chip Economic Indicators. The economy grew at a revised 4 percent rate in the third quarter, the Commerce Department said.
Stocks dropped after the Conference Board said its consumer confidence index reached 84.1 in November. While the measure rose from 79.4 in October, the reading was the second lowest in almost nine years and below the average estimate of 85 from a Bloomberg survey of analysts.
American International Group fell $2.75, to $62.35. American Airlines' announcement Monday that it was cutting flights could hurt American International's aircraft-leasing business, said Scott Murray, an analyst at Banc One Investment Management.
Lilly dropped $4.06, to $64. Friedman, Billings, Ramsey analyst David Moskowitz cut the shares to "market perform" from "outperform," citing competition for Zyprexa from Bristol-Myers Squibb's Abilify and Lilly's recent gains. The shares have climbed 16 percent the past month.
Semtech declined $3.56, to $14.55. The maker of semiconductors for companies such as Cisco Systems said fourth-quarter profit will be 9 cents to 11 cents a share. Analysts surveyed by First Call had an average estimate of 14 cents. Demand for all chips except those used in portable devices fell in the third quarter, Semtech said.
El Paso fell $2.05, to $8.63. About $25 billion of the energy company's debt was cut to junk by Moody's Investors Service on concern the company must sell assets to make up a cash shortfall and may incur more costs to exit energy trading. The downgrade will force El Paso to put up more collateral for outstanding loans.
Citizens Communications fell 97 cents, to $9.83. The Securities and Exchange Commission is examining "irregularities" in $7.8 million in payments made by the telephone service provider for which no benefits were received.
* The New York Stock Exchange composite index fell 9.22, to 483.40; the American Stock Exchange index fell 10.23, to 804.36; and the Russell 2000 index of smaller-company stocks fell 6.53, to 398.32.
* Declining issues outnumbered advancing ones by 7 to 4 on the NYSE, where trading volume fell to 1.54 billion shares, from 1.59 billion on Monday. On the Nasdaq, decliners outnumbered advancers by 11 to 7 and volume totaled 1.87 billion, down from 1.92 billion.
* The price of the Treasury's 10-year note rose $8.75 per $1,000 invested, and its yield fell to 4.07 percent, from 4.18 percent on Monday.
* The dollar fell against the Japanese yen and the euro. In late New York trading, a dollar bought 121.68 yen, down from 122.07 late Monday, and a euro bought 99.27 cents, up from 99.09.
* Light, sweet crude oil for January delivery settled at $26.40 a barrel, up 29 cents, on the New York Mercantile Exchange.
* Gold for current delivery fell to $317.70 a troy ounce, from $317.80 on Monday, on the New York Mercantile Exchange's Commodity Exchange.