It seems we've started a mild correction after last week's huge post-Brexit rally with the Dow steadily sinking all day long to settle 108 points down.  It seems that after last week's huge gains that investors are taking a breath and wondering if the "Brexit effect" really is over.  I think they can take it to the bank that it isn't and that there will be further selloffs.  So there was a little of what they call "risk-off" trading today, aggravated by an almost 5% drop in crude and a new report showing that factory orders fell in May.  But most investors are apparently still waiting it out as reflected in the below-average volume of 6.9 billion.

Markets | Tue Jul 5, 2016 6:04pm EDT

Economic growth worries, oil slump drag Wall St. lower

BY MARCUS E. HOWARD

DJ:  17,840.62  -108.75     NAS: 4,822.90  -39.67        S&P: 2,088.55  -14.40

(Reuters)  Stocks fell on Wall Street Tuesday following their best weekly performance of the year as investors faced continued uncertainty in the wake of Britain's decision to leave the European Union and as tumbling oil prices weighed on energy shares.  U.S government bond yields reached record lows as investors found refuge in the perceived safety of Treasuries and uncertainty from Britain's vote to exit the EU, known as Brexit, fueled worries about a global economic slowdown.

Four of the top five decliners on the S&P 500 were bank stocks, with JPMorgan (JPM.N), down 2.8 percent t0 $59.55, weighing the most. The financial sector of the S&P .SPSY was down 1.5 percent

"Brexit is a friction on economic activity and that's bad for banks," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago.

"Low interest rates are horrible for financials, specifically for banks. The spread between where they borrow and where they lend is getting closer together."

The Dow Jones industrial average .DJI fell 108.75 points, or 0.61 percent, to 17,840.62, the S&P 500 .SPX lost 14.4 points, or 0.68 percent, to 2,088.55 and the Nasdaq Composite .IXICdropped 39.67 points, or 0.82 percent, to 4,822.90.

Brent crude LCOc1 fell 3.9 percent and U.S. crude CLc1 lost 4.5 percent as investors worried that Brexit would slow the global economy, making it unlikely energy demand will grow enough to absorb a persistent supply glut.  The energy sector of the S&P 500 .SPNY fell 1.9 percent. The materials index .SPLRCM was also down 1.9 percent.

Tepid U.S. data added to overall growth worries. Data showed new orders for U.S. factory goods fell in May on weak demand for transportation and defense capital goods.

Investors have been seeking safe-haven assets in an uncertain economic environment. Weak data from China added to the nervousness stemming from Brexit.

"After a surprisingly big bounce last week, I think we're in a little bit of a risk-off trading today - the uncomfortable feeling that maybe all is not fully well given Brexit," said Jeffrey Carbone, senior partner at Cornerstone Financial Partners in Cornelius, North Carolina.

Foreign exchange volatility as well as the economic uncertainty after Britain's vote to leave the EU also have fueled worries about a projected profit rebound in the United States. U.S. companies have been stuck in an earnings recession since last year.

Tesla's (TSLA.O) shares fell 1.2 percent to $213.98 after the electric car maker missed vehicle delivery targets for the second consecutive quarter.

Netflix (NFLX.O) rose 1.3 percent to $97.91 after it reached an agreement with Comcast (CMCSA.O) for its services to be available on the cable company's set-top box. Comcast closed down 0.4 percent at $65.01.

Declining issues outnumbered advancing ones on the NYSE by a ratio of 2.75-to-1 and on the Nasdaq a 2.67-to-1 ratio favored decliners.

The S&P 500 posted 69 new 52-week highs and one new low; the Nasdaq recorded 73 new highs and 30 new lows.

About 6.9 billion shares changed hands in U.S. exchanges, compared with the 7.7 billion daily average over the past 20 sessions.