Published: Wed, April 25, 2018
Finance | By Loren Pratt

Sell-off in industrial, tech stocks sends Dow down for 5th straight day

US stocks slid Tuesday amid disappointing first-quarter earnings reports from industrial giants like Caterpillar and 3M, and from tech companies like Alphabet, the parent company of Google.

The Dow was down 540 points, or 2.2 percent, at 23,918.

Wall Street declined on Tuesday, led by a selloff in industrials, materials and technology shares, after as 10-year Treasury yields hit the highly anticipated 3% mark for the first time in four years. Bloomberg News reported that the companies are close to a deal and the shares rose 2.2 percent to $163.53.

Meanwhile, Wall Street was also spooked by the changes in the 10-year Treasury yield.

Facebook fell 4 percent to $159.27 and Microsoft skidded 2.4 percent to $93.10.

THE QUOTE: "U.S. markets were rocked by both bond yields and corporate concerns overnight, seeing only few defensive sectors thriving on the comprehensive S&P 500 index". It jumped in early trading but later fell 4.1 percent to $147.70.

While corporate earnings across the board for the first quarter ended March 31 have generally been positive so far, that was not enough to buoy the overall stock market. It's been climbing because investors expect greater economic growth and faster inflation.

INDUSTRIAL WEAKNESS: 3M, which makes Post-it notes and industrial coatings and ceramics, shed 8.3 percent to $197.92 after it cut its annual forecast.

The Dow initially rose more than 130 points on strong earnings reports from Caterpillar and 3M before swiftly reversing.

USA stocks slid on Tuesday as 10-year Treasury yields hit the highly anticipated 3 per cent mark for the first time in four years, stoking concerns over higher borrowing rates for companies already facing rising costs, and as quarterly results failed to deliver positive outlooks.

Bond prices fell. The yield on the 10-year Treasury rose to 2.99 percent.

Other FAANG stocks were also hit hard.

Another market favorite, online retailer Amazon, shed 3.8 percent to $1,460.09.

CURRENCIES: The dollar edged up to 108.67 yen from 108.65 yen.

The energy group fell 0.6 per cent as oil prices declined. The euro rose to $1.2229 from $1.2205. But when trading resumed for New York's Tuesday session, investors sold their Alphabet stocks after focusing more on the company's rising expenses and shrinking margins.

Facebook is expected to post adjusted 1Q earnings of $1.36 per share, up 30 percent from $1.04 past year.

Japan's benchmark Nikkei 225 slipped 0.3 percent to 22,206.51 and Hong Kong's Hang Seng lost 0.8 percent to 30,378.89. The Nasdaq gave up 45 points, or 0.6 percent, to 7,083. Natural gas rose 1.5 percent to $2.78 per 1,000 cubic feet.

METALS: Gold rose 0.7 percent to $1,333 an ounce.

The S&P 500 and the Dow fell the most in two-and-a-half weeks, while the Dow Jones Industrial Average was down for a fifth day in a row.

Germany's DAX lost 0.2 percent while the French CAC 40 added 0.1 percent and Britain's FTSE 100 rose 0.4 percent.

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