* Apple to unveil smaller tablet computer
* Spanish yields rise after Moody's downgrade of regions
* United Tech, DuPont post earnings
* Indexes off: Dow 1.4 pct, S&P 1.4 pct, Nasdaq 1.1 pct
By Chuck Mikolajczak
NEW YORK, Oct 23 (Reuters) - U.S. stocks slid more than 1
percent on Tuesday as poor earnings from major multinationals
confirmed fears about the slowing global economy and Moody's
downgraded credit ratings for regions in Spain.
A number of the disappointing results including Dupont and
United Technologies came from companies with operations across
the globe and in many industries. The weak earnings and
dwindling revenues have led to cost-cutting that will add to
lost jobs in order to protect profits.
"The writing has been on the wall for a while," said Peter
Jankovskis, co-chief investment officer at OakBrook Investments
LLC in Lisle, Illinois.
"It's a very tough environment, tough to generate new
revenues, so it shouldn't be too big a surprise we are having
people miss on that front."
DuPont, another component of the Dow Jones industrial
average, reported a lower-than-expected quarterly profit and
announced 1,500 job cuts to offset falling sales around the
world. Its shares tumbled 7.4 percent to $46.09 and pulled the
S&P materials sector down 2.7 percent.
United Technologies Corp reported a 3.3 percent
decline in third-quarter earnings and cut its sales forecast for
the year, citing weak demand from airlines and an uncertain
economy, sending shares down 0.5 percent to $77.46.
3M Co lost 3.1 percent to $99.65 after the
diversified U.S. manufacturer cut its profit forecast for the
full year as acquisition costs and a strengthening dollar hurt
The three companies accounted for about 50 points of the
decline on the Dow industrials.
Spanish borrowing costs rose after Moody's downgraded five
of the country's regions, including economically important but
deeply indebted Catalonia.
"We had gone through a period starting with (European
Central Bank President Mario) Draghi's announcement from the ECB
that he would stand behind the sovereign debt where Spain's
situation had kind of faded from people's view and it's bubbling
up again," Jankovskis said.
The Dow Jones industrial average dropped 184.78
points, or 1.38 percent, to 13,161.11. The Standard & Poor's 500
Index lost 19.58 points, or 1.37 percent, to 1,414.24.
The Nasdaq Composite Index fell 34.14 points, or 1.13
percent, to 2,982.82.
The S&P 500 was below its 50-day moving average of about
1,434, a level which has acted as a strong support point in
recent sessions and could signal further declines if
United Parcel Service Inc reported a lower quarterly
profit on Tuesday, citing slowing global trade, and said there
was "some uncertainty" about the strength of the coming holiday
season. Its shares, however, advanced 3 percent to $73.72 in
Of the 127 S&P 500 companies that have reported
earnings through Monday, 61 percent have topped analysts'
expectations, shy of the 62 percent average since 1994 and below
the 67 percent average over the past four quarters.
Even more disconcerting to investors are top-line
expectations. Through Monday morning 61 percent of companies
having missed revenue expectations.
Overall earnings for S&P 500 stock index companies are
expected to fall 2.4 percent in the third quarter from a year
Some 33 S&P 500 companies are scheduled to post earnings on
Apple Inc shed 1.3 percent to $625.90. The company
is expected to make its biggest product move on Tuesday since
the iPad's debut two years ago, launching a smaller, cheaper
tablet into a market staked out by Amazon.com Inc and
Whirlpool Corp gained 4.4 percent to $90.11 after
reporting a higher-than-expected quarterly profit, helped by
price increases and tight cost controls. The world's largest
appliance maker raised its earnings outlook for the year.
The Federal Reserve's policy committee is scheduled to begin
a two-day meeting on interest rates on Tuesday. The Federal
Open Market Committee is likely to hold off from taking new
action, opting instead to review the impact of last month's
easing of credit while keeping a low profile in the last
gathering before the Nov. 6 general election.