Stocks fall on disappointing earnings, geopolitical tensions
Stocks pared heavy losses Tuesday after disappointing profit forecasts and geopolitical tensions rattled Wall Street.
The Dow Jones Industrial Average dropped 125.98 points, or 0.5 percent, to 25,191.43. The S&P 500 was down 15.19 points, or 0.55 percent, at 2,740.69. The Nasdaq Composite fell 31.09 points, or 0.42 percent, to 7,437.54.
3M, Caterpillar, Boeing, Apple and Goldman Sachs were the biggest losers. At its low point, the Dow fell over 500 points.
Caterpillar and 3M took a hit after the companies released their quarterly results. 3M earned $2.58 a share, below forecasts, and the company also cut its earnings guidance for 2018. Caterpillar's quarterly results beat Wall Street expectations but their guidance disappointed.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 37801.81 | -659.11 | -1.71% |
| SP500 | S&P 500 | 5005 | -66.63 | -1.31% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15451.821531 | -260.93 | -1.66% |
It’s a big day for blue chip earnings; beyond Caterpillar and 3M, Verizon, United Technologies and McDonald’s all reported ahead of the opening bell.
McDonald’s reported third-quarter earnings of $2.10 per share on $5.37 billion in revenue. Analysts had expected the company to post earnings of $1.99 per share on $5.32 billion in revenue.
United Technologies beat profit expectations while the company raised its outlook. Verizon matched profit expectations while its revenue was a slight beat.
Prior to the barrage of earnings reports stocks tracked overseas markets lower. Overnight, China’s stock market fell more than 2 percent as trade concerns continue to hang over the markets and investors are pessimistic about economic prospects.
The Shanghai Composite started the week with more than a 4 percent gain on Monday.
Investors are also eyeing interest rate concerns and geopolitical tensions.
FOX Business’ Ken Martin contributed to this article.