US stocks drop as Alcoa, Legg Mason disappoint

NEW YORK, Oct 11 (Reuters) US stocks fell on Wednesday as disappointing earnings news from aluminum maker Alcoa Inc.

and money manager Legg Mason Inc. raised doubts about the outlook for corporate profits.

Alcoa was the largest drag on Dow Jones Industrial average as its shares fell almost 6 percent to .60 on the New York Stock Exchange.

Legg Mason shares slumped after it cut its quarterly guidance and Merrill Lynch&Co. lowered its investment rating on the company. Legg Mason shares fell 16.9 percent to .50 on the NYSE.

Other financial sector shares retreated. Bank of America lost 1 percent to .93, while Citigroup fell 1 percent to .30.

The Dow Jones industrial average was down 37.30 points, or 0.31 percent, at 11,829.87. The Standard&Poor's 500 Index was down 3.71 points, or 0.27 percent, at 1,349.71. The Nasdaq Composite Index was down 6.39 points, or 0.28 percent, at 2,309.04.

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