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Caterpillar Forecast Sends Stocks Plunging

Money editor Frank Mottek talks to a market veteran who says interest rates could be worrisome.

April 24, 2018 - 12:01 pm

NEW YORK (CBS News) -- Major U.S. stock indexes fell sharply Tuesday as investors sold technology and industrial stocks. Bond yields continue to rise, with the 10-year Treasury note briefly reaching 3 percent for the first time in more than four years.

Caterpillar (CAT) had a strong first quarter, but company executives told analysts on a conference call in the late morning that the company doesn't expect to report a larger per-share profit for the rest of the year. It jumped in early trading but later fell 6.2 percent.

The Dow and the Nasdaq both fell 1.7 percent. The S&P 500 fell slightly less -- 1.3 percent.

Alphabet (GOOG), Google's parent company, fell 4.8 percent to $1,021.50. The company had reported solid results Monday, with strong gains in ad sales. But expenses also rose.

Facebook (FB), which reports earnings on Wednesday, fell 3.6 percent, to $159.89. Microsoft skidded 2.3 percent and Amazon (AMZN) shed 3.8 percent to $1,456.61.

3M (MMM), which makes Post-it notes and industrial coatings and ceramics, dropped 6.8 percent after it cut its annual forecast. Defense contractor Lockheed Martin (LMT) sank 6.1 percent.