Dow Jones drops 291 points over outlook worries
U.S. stocks are closing lower after disappointing outlooks from Caterpillar and Microsoft raised worries about future profit growth at companies.
The Dow Jones industrial average dropped 291 points, or 1.7 percent, to close at 17,387 Tuesday. The blue-chip average dropped as much as 390 points earlier. The Standard & Poor’s 500 index slid 27 points, or 1.3 percent, to 2,029. The Nasdaq composite tumbled 90 points, or 1.9 percent, to 4,681.
Microsoft shares slid 9 percent, the biggest fall among S&P 500 stocks. The company noted in its quarterly results that licensing revenue for Windows fell, and it warned that a strong dollar will dent revenue.
Caterpillar’s stock fell 7 percent after the heavy equipment maker was hurt in the fourth quarter by restructuring costs, and issued a weak outlook.