Stocks plunged on Tuesday, Oct. 23, as investors focused on slowing economic growth and simmering geopolitical tensions and earnings from blue chips Caterpillar Inc. (CAT) and 3M Co. (MMM) disappointed.
The Dow Jones Industrial Average declined 125 points, or 0.50%, to 25,191; at its lows for the day the index declined 548 points. The S&P 500 tumbled 0.6% and the Nasdaq fell 0.4%.
Caterpillar Inc. (CAT) fell 7.6% on Tuesday after suggesting that increased demand had created some supply chain challenges even though it beat third-quarter earnings and revenue estimates.
The Deerfield, Ill.-based construction and mining equipment manufacturer posted adjusted earnings of $2.86 a share on revenue of $13.5 billion. Analysts had been expecting earnings of $2.85 on revenue of $13.26 billion, according to FactSet.
The company reiterated its full-year adjusted profit per share outlook range of $11 and $12 a share, which compared with analysts' expectations of $11.64 a share.
Caterpillar Falls Despite Beating Earnings, Revenue Estimates3M Co. (MMM) tumbled 4.4% after third-quarter profit missed expectations and the company cut its full-year earnings forecast.
The maker of Post-it notes reported a third-quarter profit of $2.58 a share, missing estimates of $2.70. Revenue of $8.15 billion also missed expectations of $8.41 billion, according to FactSet.
3M cut its full-year adjusted earnings estimate to $9.90 to $10 a share, which is below consensus estimates of $10.28.
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McDonald's Corp.'s (MCD) third-quarter earnings of $2.10 a share beat Wall Street expectations of $1.98. Sales of $5.37 billion also topped forecasts. Same-restaurant sales in the quarter rose 4.2%. The stock rose 6.3%.
Investors Eat Up McDonald's After It Easily Tops Sales and Earnings ExpectationsVerizon Communications Inc. (VZ) posted third-quarter adjusted profit of $1.22 a share, 3 cents above estimates. Revenue of $32.61 billion topped forecasts of $32.5 billion. Wireless revenue in the quarter rose 6.5% to $23 billion. Shares rose 4.1%.
United Technologies Corp.'s (UTX) third-quarter adjusted profit of $1.93 beat analysts' estimates by 11 cents. Revenue of $3.44 billion beat forecasts of $3.33 billion. The company also raised its earnings and sales guidance for 2018. Shares rose 2.9%.
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Biogen Inc. (BIIB) posted adjusted earnings in the third quarter of $7.40 a share, higher than estimates of $6.78 a share. The stock rose 0.2%.
Harley-Davidson Inc. (HOG) posted stronger-than-expected third-quarter earnings and confirmed its full-year shipping and profit margin guidance as the iconic motorcycle maker continues to move away from its trade war spat with Donald Trump. Harley-Davidson fell 2.2%.
Harley-Davidson Tops Q3 Earnings, Confirms Full-Year Shipment ForecastsThe board of Arconic Inc. (ARNC) , the aluminum products maker, is mulling an $11 billion acquisition offer it received Friday, Oct. 19, from buyout firm Apollo Global Management LLC (APO) , Reuters reported, citing people familiar with the matter.
Apollo's offer values Arconic at between $23 and $24 a share, according to one of the sources. Arconic shares fell 3.75% to $20.65 on Tuesday.
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