NEW YORK — Nagging worries about banks upended a stock market rally yesterday.

Volatile financial stocks steered the overall market for the third straight day after Morgan Stanley and credit card issuer Capital One Financial Corp. posted lackluster quarterly reports. Investors have been worried about rising levels of souring debt on bank balance sheets.

A late-session drop in banks left Wall Street's major benchmarks mixed. The Dow Jones industrial average fell, while the technology-heavy Nasdaq composite index ended modestly higher ahead of a quarterly report from eBay Inc.