Stocks fell on Tuesday after a disappointing outlook from 3M Co and a second consecutive month of domestic sales declines at McDonald's Corp triggered worry about the pace of consumer spending.
Shares of McDonald's
The disappointing views offset optimism late Monday from FedEx Corp
McDonald's highlights the plight of the consumer, but the good news came yesterday from FedEx, said Quincy Krosby, market strategist for Prudential Financial in Newark, New Jersey.
This is part of the tug-of-war in the economic landscape but also in the market. The market had a very nice run up, and we may be seeing a little bit of the froth coming off.
Another sign of tentative consumer spending came from supermarket operator Kroger Co
The S&P Consumer Staples index <.GSPS> slipped 1.3 percent.
The Dow Jones industrial average <.DJI> dropped 80.87 points, or 0.78 percent, to 10,309.24. The Standard & Poor's 500 Index <.SPX> fell 8.51 points, or 0.77 percent, to 1,094.74. The Nasdaq Composite Index <.IXIC> lost 15.87 points, or 0.72 percent, to 2,173.74.
Equities also faced pressure from a climb in the U.S. dollar and a dip in commodities, while continuing concerns about the developing debt situation in Dubai hit overseas stock markets.
The greenback <.DXY> added 0.5 percent against a basket of six other major currencies.
(Editing by Padraic Cassidy)