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On Tuesday, markets felt the pinch of disappointing quarterly results and the benchmarks slid a few points as investors feared profitability might drop over the coming quarters. Over the past couple of weeks, markets have remained upbeat, climbing to multi-year highs following robust corporate results. Additionally, a drop in crude prices weighed down the energy sector.

The Dow Jones Industrial Average (DJIA) was the only gainer among the benchmarks as it edged up 0.2% to 12,807.51. The Standard & poor 500 dropped 0.3% and the Nasdaq slipped 0.8% to settle at 1,356.62 and 12,807.51, respectively. After hitting its highest level in three years last week, the S&P 500 has now declined for two-straight days. On the New York Stock Exchange, composite volumes were at 4.5 billion shares. For every one stock that advanced on the NYSE, two stocks declined.

While earnings had been a favorable factor for the markets over the past few weeks, the markets had to suffer the flip side as companies posted lower-than-expected results yesterday. Pfizer Inc. (NYSE:PFE) (2.8%) was one of the biggest laggards for the Dow as it failed to beat sales estimates. Joining the list of disappointing results were companies like Clorox Corporation (NYSE:CLX), Molson Coors Brewing Company (NYSE:TAP), Beazer Homes USA Inc. (NYSE:BZH) and Sears Holdings Corporation (NASDAQ:SHLD). These shares dropped 3.6%, 6.0%, 5.0% and 9.9%, respectively.

Pfizer Inc. posted a heavily disappointing result. Earnings for the quarter managed to top estimates but shares slid significantly as the drug major failed to cross revenue estimates. Moreover, the company also lowered its revenue guidance. Pfizer Inc. reported first quarter earnings of 60 cents per share, flat from the year-ago period. First quarter revenues declined 0.4% to $16.5 billion. Shares were down 2.8% and finally closed at $20.44.

Meanwhile, Cognizant Technology Solutions Corp. (NASDAQ:CTSH) reported revenues of $1.37 billion in the first quarter of 2011, up 42.9% year over year and up 4.6% sequentially. Net income came in at $208.3 million or 67 cents per diluted share compared to a net income of $151.5 million or 49 cents per share in the year-ago quarter.  Cognizant Technology’s figures managed to beat estimates but its slowing growth rate dragged the shares down. The company’s shares dropped 5.75 to settle at $77.52.

As crude prices retreated, energy shares slid into the red, dragging down the broader markets. The June crude oil contract dropped $2.47 and settled at $111.05 a barrel Exxon Mobil Corporation (NYSE:XOM), ConocoPhillips (NYSE:COP), Chevron Corp. (NYSE:CVX), Valero Energy Corp. (NYSE:VLO) and Western Refining Inc. (NYSE:WNR) dropped 1.6%, 3.8%, 1.9%, 2.8% and 3.4%, respectively.

Economic data, released on Tuesday did little to boost market sentiment. The Commerce Department reported that Factory Orders increased by 3.0%, $13.5 billion, to $462.9 billion in March against expectations that the measure would increase by 1.9%, following a 0.7% increase in February. Factory Orders are up following five consecutive monthly increases. Excluding transportation, Factory Orders increased by 2.6%.

 
BEAZER HOMES (BZH): Free Stock Analysis Report
 
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