Stocks suffer third straight big loss*

The Dow dropped 104 points, to 12,617, following up on two previous triple-digit losses and causing new jitters on Wall Street. Year to date, the Dow is up 3.3 percent. It's been a bad news week, what with growing worries about Spanish debt and further signs that the U.S. economy is slowing. Preliminary GDP numbers for the second quarter are due out later this week, and many economists are expecting sub-2 percent growth, which would be quite weak. Meanwhile, the WSJ is reporting that Federal Reserve officials are considering some sort of action to rev up the economy. An announcement could be made as early as next week, but it's also possible the Central Bank will hold off until September (the Journal posted its story right before the market closed).

Several officials have expressed both frustration with the disappointing recovery and a willingness to act if growth and employment don't pick up. Sandra Pianalto, president of the Cleveland Fed, said in public comments earlier this month she would be prepared to act if weak economic data persisted. Dennis Lockhart, the Atlanta Fed president, said more action could be needed barring a "step-up of output and employment growth." Fed "hawks"--who tend to worry more about inflation and have opposed more action to stimulate the economy--have softened their tone and acknowledged the frustration. "I know people feel like we haven't made enough progress," James Bullard, St. Louis Fed president, said in an interview this month. He said he would be prepared to act if inflation falls too low or if a new shock hits the economy.

*Update: Apple earnings are coming in below estimates, which isn't likely to sit well when trading opens on Wednesday. Shares are down in after-hours trading.