* Dow off 1.7 pct, S&P off 1.4 pct, Nasdaq off 0.7 pct
* DuPont drops sharply on results, UTX modestly lower
* Spanish bond yields rise after Moody's downgrade
* Just 37 percent of S&P companies beating revenue forecasts
By Atossa Araxia Abrahamian
NEW YORK, Oct 23 (Reuters) - U.S. stocks dropped sharply on
Tuesday as a sluggish economy caught up with some of the world's
biggest multinationals, hitting their earnings and adding to
fears about weak global growth.
The latest string of disappointing results came from
blue-chips DuPont and United Technologies, which operate around
the world and in many industries. DuPont shares lost more than 8
percent, leading the Dow industrials lower.
"Clearly, U.S. companies are feeling the pain as a result of
the global slowdown," said Bernard Baumohl, managing director
and chief global economist at the Economic Outlook Group in
Princeton, New Jersey.
DuPont pulled the S&P materials sector index
down 3.1 percent. DuPont's stock lost 8.5 percent to $45.52
after the chemical company reported lower-than-expected
quarterly profit and announced 1,500 job cuts on Tuesday.
With 145 of the S&P 500 companies having reported
results so far, 63 percent have missed analysts' top-line
expectations for revenue, t he inverse of the usual, as 62
percent of companies have traditionally exceeded estimates since
1994, and 55 percent have beaten over the past four quarters, on
United Technologies Corp slid 1.4 percent, to $76.72
after its third-quarter earnings fell 3.3 percent. The company,
the world's largest maker of elevators and air conditioners,
also missed revenue expectations. And 3M Co dropped 3.3
percent to $89.47 after the diversified U.S. manufacturer missed
revenue forecasts and cut its profit for 2013.
United Parcel Service Inc reported a lower quarterly
profit, citing slowing global trade. Its stock, however, rose
2.9 percent to $73.62 after UPS, the world's largest package
delivery company, slightly revised its 2012 forecast - giving
Wall Street an indication that it would beat the consensus
estimate for the fourth quarter, which includes the crucial
Overall earnings for S&P 500 companies are expected to fall
2.5 percent in the third quarter from a year ago, Thomson
Reuters data showed.
The Dow Jones industrial average slid 227.36 points,
or 1.70 percent, to 13,118.53. The Standard & Poor's 500 Index
slipped 19.40 points, or 1.35 percent, to 1,414.42. The
Nasdaq Composite Index fell 21.72 points, or 0.72
percent, to 2,995.24.
With the market's recent decline, it has now given up all of
its gains since the European Central Bank's Sept 6. announcement
of a plan to buy bonds of troubled euro-zone nations.
Moody's downgraded five key Spanish regions by one or two
notches late on Monday, citing their limited cash reserves and
forthcoming bond repayments.
The S&P 500 was below its 50-day moving average of about
1,434, a level that has acted as a strong support point in
recent sessions and could signal further declines if
The Federal Reserve's policy committee will begin a two-day
meeting on interest rates on Tuesday.
A total of 33 S&P 500 companies were scheduled to report
earnings on Tuesday, including Netflix and Facebook
after the close.
Shares of Harley-Davidson rose 6.5 percent to $46.36
after the U.S. motorcycle manufacturer reported earnings and
sales on Tuesday that beat expectations.
Upscale leather-goods maker Coach Inc reported a
quarterly profit on Tuesday that topped Wall Street's consensus
forecast by a penny per share, along with big sales gains in
China and strong quarterly sales growth at its North American
stores. Shares of Coach jumped 8.3 percent to