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Dow Drops Over 400 Points On Poor Earnings Reports

Caterpillar helped drag the Dow Jones Industrial Average down to a five-day losing streak. The company reported earnings and revenue that bested predictions and the stock went higher initially.  But Caterpillar's shares later fell 6.2%  after the company's CFO Bradley Halverson said economic growth may slow later in the year. 3M reported quarterly earnings that met analyst expectations, but then the company lowered its full-year profit forecast, causing the stock to drop nearly eight percent.  

According to CNBC, investors are concerned that "rising borrowing costs may slow the economy."

Investors are worried rising borrowing costs may slow the economy and hurt companies' ability to buy back their own stock. Investors have been selling Treasurys this month — pushing yields higher — amid expectations of rising inflation, which could prompt the Federal Reserve to tighten monetary policy at a faster pace.

By the closing bell, the Dow slipped 425 points to close at 24,024.  The S&P 500 dropped 36 points to 2,634, and the Nasdaq closed 121 points lower at 7,007.

Photo: Getty Images 


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