Dow Slumps Amid Gloomy 3Q News From Major U.S. Companies

Dow plunges in early morning trading amid gloomy reports

Wall Street is having a tough Tuesday morning during an even tougher October for financial markets. 

The Dow dropped more than 500 points, or 2%, following gloomy financial reports from several major U.S. companies. Caterpillar (CAT) and 3M (MMM) both reported disappointing earnings numbers as they reinforced concerns over how long companies can continue making big profits with tariffs and rising costs on the horizon. 

3M was down 6% after reporting a dip in sales and weaker-than-expected profits. The bad news got worse, as the company also downgraded their earnings forecast for the year. Caterpillar was down 8% after a third-quarter profit was overshadowed by disappointing guidance. The Dow member warned in its earnings of "higher material and freight costs, including tariffs." 

The S&P 500 was off by 1.6% and the Nasdaq skidded about 2%. 

Tech stocks continued to take a beating with Netflix and Amazon down around 3%. Apple and Facebook were both off, down 2% after the start of trading. 

It's not all bad news out there. While McDonalds reported declines in sales, the fast-food company still managed to beat expectations. Verizon also announced they beat estimates, which helped the Dow pare down some of its worst losses of the morning. 

The Dow is currently on pace to have its worst month in more than two years. It's been even worse for the Nasdaq. So far, the Dow has lost about 1,500 points this month, marking the index's steepest decline since August 2015. 

Photo: Getty Images


Sponsored Content

Sponsored Content

Â