NEW YORK — Wall Street pulled back sharply Tuesday as investors dealt with disappointing earnings reports and rising concerns about the mortgage market. The Dow Jones industrials fell more than 200 points.

DuPont Co. was the Dow's biggest loser after the chemical maker reported flat second-quarter profit, as improving sales abroad balanced the ongoing weakness in the U.S. housing and automotive markets. Fellow Dow component American Express Co. said late Monday its quarterly profit climbed 12 percent on record card member spending. However, the nation's third-largest credit card brand said cardholders are also shirking more payments.

Tuesday's retreat was not surprising, given that the market's recent move into record territory above 14,000 came before companies began reporting quarterly results in earnest. Many investors bet that results would be better than has been the case. A profit warning from mortgage lender Countrywide Financial Corp. Tuesday also reminded investors that troubles in the subprime market persist.

The Dow gave up 226.47, or 1.62 percent, closing at 13,716.95.

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AMAZON.COM'S 2Q PROFIT JUMPS

SEATTLE — Amazon.com Inc.'s second-quarter profit more than tripled, boosted by strong sales of books, music and electronics worldwide. The Web retailer's stock soared 11.3 percent in after-hours trading.

Earnings for the three months ended June 30 climbed to $78 million, or 19 cents per share, from $22 million, or 5 cents per share during the same period last year, the company said Tuesday.

Results topped Wall Street's expectations. Analysts surveyed by Thomson Financial forecast a profit of 16 cents per share.

Revenue rose 35 percent to $2.88 billion from $2.14 billion in the year-ago quarter, beating analysts' expectations for $2.81 billion in sales.

Prior to the announcement, shares of Amazon sank $2.49, or 3.5 percent, to close at $69.25. They gained $8.72 to $77.07, in after-hours trading.

Sales in the U.S. and Canada rose 38 percent to $1.6 billion. In the company's U.K., German, Japanese, French and Chinese sites, revenue increased 31 percent to $1.28 billion.

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COUNTRYWIDE 2Q PROFIT DIPS

LOS ANGELES — Countrywide Financial Corp. said Tuesday its second-quarter profit shrank by nearly a third as softening home prices led to more delinquencies and mortgage defaults.

The huge mortgage lender was forced to take impairment charges as it braced for more borrowers unable to make mortgage payments.

Countrywide also said the market will become even more challenging as lenders compete more fiercely.

The news sent shares of the Calabasas-based company sliding $3.92, or 11.5 percent, to $30.14 during afternoon trading Tuesday.

Countrywide reported second-quarter net income of $485 million, or 81 cents per share, compared with $722 million, or $1.15 per share, in the second quarter of 2006 ended June 30.

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DUPONT REPORTS FLAT 2Q EARNINGS

DOVER, Del. — Chemical giant DuPont Co. on Tuesday reported flat second-quarter earnings as higher sales were offset by the cost of energy and accelerated biotech research.

International sales growth and higher domestic prices helped offset the impact of continuing weakness in the U.S. housing and automotive markets, and DuPont reaffirmed its outlook for the full year.

Net income slipped to $972 million from $975 million in the second quarter of 2006, which included a one-time tax benefit of $31 million, or 3 cents per share. Earnings per share were flat at $1.04. Excluding the tax benefit, earnings would have been $1.01 per share for the 2006 quarter.

Analysts surveyed by Thomson Financial were looking for profits of $1.06 per share. Revenue topped Wall Street's $7.86 billion consensus estimate.

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AT&T EARNINGS JUMP 61% IN 2Q

SAN ANTONIO — AT&T Inc.'s earnings jumped 61 percent in the second-quarter, driven mostly by its acquisition of BellSouth Corp. but also boosted by new wireless subscribers and better sales to large business customers.

The nation's largest provider of broadband Internet and land and wireless phone services said Tuesday that 146,000 subscribers activated new iPhones in the first 30 hours of sales as the quarter closed — news that seemed to disappoint Apple Inc. investors a day ahead of that company's earnings release. The hotly anticipated device that combines phone, media player and Web-surfing capabilities can only be used on AT&T's network as part of exclusive deal between the companies.

For the quarter that ended June 30, AT&T said net income rose to $2.9 billion, or 47 cents per share, from $1.81 billion, or 46 cents per share in the prior year's quarter. Wireless subscribers rose by 1.5 million to 63.7 million, AT&T said.

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MCDONALD'S POSTS 2Q LOSS OF $711.7 MILLION

CHICAGO — A massive one-time charge dragged down McDonald's Corp. second-quarter results Tuesday as the fast food chain lost $711.7 million — only its second quarterly loss ever.

Excluding the $1.6 billion charge relating to the sale of some Latin American and Caribbean operations, the world's largest restaurant company said its net income grew 4 percent to $869.9 million, or 71 cents per share.

For the quarter ending June 30, the world's largest restaurant chain said its net income swung to a loss of 60 cents per share. That's compared to a second-quarter profit of $834.1 million, or 67 cents per share, a year earlier.

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LOCKHEED MARTIN PROFIT UP 34%

WASHINGTON — Lockheed Martin Corp., the world's largest defense contractor, said Tuesday that second-quarter earnings rose 34 percent on higher sales in most of its businesses, including fighter jets, missile defense and information technology.

The Bethesda, Md.-based company also lifted its 2007 forecast by 45 cents per share. Its shares rose more than 5 percent in morning trading.

Lockheed earned $778 million, or $1.82 per share, up from the $580 million, or $1.34 per share, in the second quarter of 2006.

Revenue stood at $10.7 billion, up 7 percent from $10 billion in the year-ago quarter. The company's second-quarter results included a $16 million, or 4 cent per share, one-time gain from the sale of a satellite company.

The company's results easily beat the consensus of analysts surveyed by Thomson Financial, who predicted second-quarter earnings of $1.53 per share per share on $10.2 billion in revenue.

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UAL'S 2Q PROFIT LARGEST IN 7 YEARS

CHICAGO — United Airlines parent UAL Corp. reported its most profitable quarter in seven years Tuesday, a $274 million second-quarter profit that reflected increased capacity on international routes as well as fuller U.S. flights and lower costs.

JetBlue Airways Corp. also posted solid second-quarter earnings, but its 50 percent profit increase was tempered by the announcement that it plans to slow its growth in the wake of the February ice-storm debacle.

The better-than-expected earnings by UAL, for years an industry laggard financially, reinforced that carriers are benefiting more than in past years from the busy summer travel season. Like United, many have restructured to reduce domestic flights and trim costs.

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PEPSICO PROFIT UP 13 PERCENT

NEW YORK — PepsiCo Inc., the world's second-largest soft drink maker, said Tuesday its second-quarter profit rose 13 percent on the strength of sales in its international and Frito-Lay units, and raised its full-year earnings outlook.

But its shares waffled as the company announced declines for Gatorade sports drinks and Tropicana orange juice, contributing to a 1 percent slip in beverage volumes in North America.

The company also said the higher earnings reflected a lower quarterly tax rate and that results were dampened by higher raw materials costs that affected its profit margins internationally.