By Kate Gibson, MarketWatch NEW YORK (MarketWatch) -- U.S. stocks declined Tuesday as investors sweated over reports that Europe's banks are holding more risky debt than thought. "Just as the glass appeared half-full last week, the glass is looking more like half-empty today," John Stoltzfus, an analyst at Ticonderoga Securities, wrote in a note. "In Europe, investors are focusing on the concerns over implications for the region's economic health, financial sector and earnings coming from further austerity and fiscal reform," Stoltzfus added. The Dow Jones Industrial Average (DJIA 10,373, -75.11, -0.72%) fell 81.28 points to 10,366.65, with all but five of its 30 components losing ground. American Express Co. (AXP 40.52, -1.28, -3.07%) led the blue-chip decliners; its shares were down 2.5%. The S&P 500 (SPX 1,095, -9.55, -0.87%) shed 10.12 points to 1,094.39, with financials weighing the most heavily among its 10 industry groups and Lincoln National Corp. (LNC 24.73, -1.36, -5.21%) , off 5.6%, among the notable decliners. The Nasdaq Composite (COMP 2,218, -16.04, -0.72%) slid 15.46 points to 2,218.29. The dollar gained against the euro and gold, and U.S. Treasury prices rallied as Wall Street echoed moves from overseas with no domestic economic data on Tuesday's docket. Gold futures were up $8.5 at $1,259.60 an ounce after hitting a high of $1,261.6 earlier on, surpassing its record close reached in June. The yield on the 10-year Treasury note (UST10Y 2.65, -0.07, -2.40%) , a measure used in setting interest rates on mortgages and other consumer loans, fell to 2.639% as its price rose. Four stocks were on the decline for each issue rising on the New York Stock Exchange, where volume topped 174 million as of 10:35 a.m. Eastern. On Wednesday, the Federal Reserve releases its so-called beige book, offering a glimpse at regional economic activity, while on Thursday the government releases its weekly count of those filing initial claims for unemployment benefits.

Source