Wall St tumbles as higher Treasury yields hit tech companies
McDonald's falls after E. coli outbreak
Coca-Cola boost revenue outlook, keeps profit forecast
Boeing falls after results; contract vote awaited
Tesla earnings expected after the bell
Indexes down: Dow %, S&P 500 %, Nasdaq %
Updated at 2:07pm ET/6:07pm GMT
By Lisa Pauline Mattackal, Purvi Agarwal and Carolina Mandl
Oct 23 (Reuters) - Wall Street fell on Wednesday, led lower by megacap stocks as U.S. Treasury yields climbed and investors grew less confident about the outlook for strong rate cuts from the Federal Reserve, while corporate news pressured McDonald's and Coca-Cola.
Benchmark 10-year U.S. Treasury yields reached a three-month high with investors reassessing the Fed rate-cut outlook over the next few months against the backdrop of strong economic data and the upcoming U.S. presidential election.
"What's driving things more than anything else is the backup in rates," said Thomas Martin, senior portfolio manager, Globalt Investments, adding the closer the electoral race gets, markets are likely to get more jittery.
Among rate-sensitive megacaps, Nvidia NVDA.O fell 3.9% and Apple slid 3.37%, pulling Information Technology .SPLRCT stocks 2.5% lower and dragging on the tech-laden Nasdaq.
McDonald'sMCD.N slumped5.24% after an E. coli infection linked to itsQuarter Pounder hamburgers killed one and sickened many. Coca-Cola KO.N fell 1.66% after the company reiterated its annual profit growth forecast despite expecting higher revenue.
The broader Consumer Discretionary .SPLRCD sector dropped 2.22%.
"You also have to balance the fact that the U.S. equity market is expensive on a valuation basis, so we could (be) due for profit-taking," said Michael O'Rourke, chief market strategist at JonesTrading.
Tesla TSLA.O, the first of the so-called Magnificent Seven companies scheduled to report results after market close, lost 2.53%.
At 2:07 p.m. the Dow Jones Industrial Average .DJI fell 564.63 points, or 1.32%, to 42,360.26, the S&P 500 .SPX lost 81.21 points, or 1.39%, to 5,769.99 and the Nasdaq Composite .IXIC lost 406.65 points, or 2.19%, to 18,166.48.
The benchmark S&P 500 appeared headed for its third consecutive daily decline.
U.S. markets are near record-high levels, but a combination of earnings, a changing monetary policy outlook and the upcoming presidential election will test the rally and could stoke volatility, analysts said.
Richmond Fed President Thomas Barkin said the central bank's fight to return inflation to its 2% target may take longer than expected, limiting interest rate cuts.
Boeing BA.N dropped 1.12% after the planemaker reported a quarterly loss of $6 billion owing to a crippling strike. Factory workers at Boeing will vote later in the day on a new contract proposal that could end the standoff after more than five weeks.
Starbucks SBUX.O fell sharply before the opening bell but pared losses and was down 0.72% the day after the coffee shop chain suspendedits annual forecast.
Semiconductorcompany Texas Instruments TXN.O gained 3.20% after its third-quarter profit beat forecasts, while AT&T T.N rose 3.56% aftergaining more wireless subscribers than expected in the third quarter.
Declining issues outnumbered advancers by a 4.92-to-1 ratio on the NYSE. There were 82 new highs and 54 new lows on the NYSE.
The S&P 500 posted 23 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 50 new highs and 81 new lows.
Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Arun Koyyur, Pooja Desai and David Gregorio
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
