Stocks Drop on Euro Zone Uncertainty

U.S. stocks closed lower on Tuesday but recovered more than half of the session’s losses, as new questions emerged over Europe’s ability to fend off a deeper crisis in the debt-stricken region. The Dow Jones Industrial Average fell 76.44 points, or 0.59%, to 12,932.09. The S&P 500 fell 5.86 points, or 0.43%, to 1,363.72. The Nasdaq Composite lost 11.49 points, or 0.39%, to 2,946.27.

Walt Disney Co. (NYSE:DIS) said Tuesday that its fiscal second-quarter profit rose 21% on improved results at its theme parks and resorts.  It earned $1.14 billion, or 63 cents a share, compared with a profit of $942 million, or 49 cents, in the year-ago period. Excluding items, Disney said it would have earned 58 cents a share in the latest three months.

Demand Media Inc. (NYSE:DMD) on Tuesday reported a fiscal first-quarter loss of $1.8 million, or 2 cents a share, on revenue of $86.2 million.  the provider of online content and social media lost $5.6 million, or 13 cents a share, on $79.5 million in revenue. Excluding one-time items, Demand Media would have earned 7 cents a share.

The American Petroleum Institute reported late Tuesday that crude-oil supplies rose by 7.8 million barrels for the week ended May 4. Gasoline inventories fell by 4.96 million barrels and distillate stocks declined 2.7 million, the trade group said.