By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks fell on Wednesday, extending losses into a third session, as Wall Street worried about the timing of cuts in the Federal Reserve's $85 billion in monthly bond purchases.

"We've enjoyed a strong seasonal tailwind the last few months that's going to turn into a headwind in what is typically a weak season for stocks. Plus, corporate earnings for the second quarter were basically flat," said Bruce Bittles, chief investment strategist at R.W. Baird & Co.

And while equities are reacting to the idea of Fed "tapering in September," Bittles does not think the central bank will reduce stimulus this year, given the still weak labor market.

"Most of the jobs created this year are part-time, that's why I say I think the economy is still suspect," he said. Read an opposing view from Goldman Sachs on September tapering.

Off session lows that had it down 97 points, the Dow Jones Industrial Average (DJI) was more recently off 57.63 points, or 0.4%, at 15,461.11, with Walt Disney Co. (DIS) pacing blue-chip declines that included 22 of its 30 components. The entertainment company fell 2% after reporting fiscal third-quarter profit little changed from the year-ago period.

Also weighing on the Dow, shares of Bank of America Corp. (BAC) fell 1.9%, a day after the Department of Justice filed suit against the bank for allegedly misleading investors about loans linked to mortgage-backed securities.

The S&P 500 index (SPX) shed 10.59 points, or 0.6%, to 1,686.78, with financials falling hardest among its sectors.

The market is overbought after a six-week run higher, but much of the fretting over the Fed's monetary moves is already priced in, which is "why this decline shouldn't carry that far," said Bittles.

The index declined 0.6% on Tuesday after Fed Bank of Chicago President Charles Evans said the central bank could start easing its asset buys as soon as September.

The Nasdaq Composite (RIXF) declined 17.13 points, or 0.5%, to 3,648.65.

For every share gaining, more than two fell on the New York Stock Exchange, where 228 million shares traded by 12:45 p.m. Eastern. Composite volume exceeded 1.5 billion.

First Solar Inc. (FSLR) fell 13% after the solar-panel manufacturer reported a profit drop in the second quarter.

Zillow Inc.'s (ZILLOW.XX) hares dropped 7.4% after the real-estate information site reported a second-quarter loss. Read Wednesday's Movers & Shakers.

Time Warner Inc. (TWX) climbed 2.1% after the entertainment provider reported larger-than-expected quarterly revenue.

AOL Inc. (AOL) shares gained 1.6% after the Internet company reported better-than-expected revenue for the second quarter and said it would buy Adap.tv, a video advertising platform, for $405 million.

Ralph Lauren Corp. (RL) declined 6.2% after the clothing retailer projected quarterly profit beneath estimates. (Read more in Behind the Storefront: http://blogs.marketwatch.com/behindthestorefront/2013/08/07/ralph-lauren-results-shock-spoiled-investors/.)

Computer Sciences Corp. (CSC) rose 6.3% a day after the technology consultant hiked its earnings outlook.

The dollar (DXY) edged lower against the currencies of major U.S. trading partners including the yen (USDJPY) , while Treasury prices rose, lowering the yield on the 10-year note 2 basis points to 2.618%.

Oil prices slipped, with the September crude futures (CLU3) contract down 45 cents, or 0.4%, at $104.85 a barrel on the New York Mercantile Exchange.

Gold futures turned higher, with the futures contract for December delivery (GCZ3) up $2.50, or 0.2%, to $1,285 an ounce on the Comex.

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