Investing.com - Industrials slumped Tuesday, heaping further pressure on the broader averages as investors digested mixed earnings from heavyweights Caterpillar , 3M and United Technologies.
Caterpillar (NYSE:CAT) rose from session lows, but continued to nurse a 6% slump as investors fretted about margin pressures weighing on profits. The company's third-quarter results highlighted a rise in costs with higher steel prices and tariffs. Caterpillar beat third-quarter estimates on both the top and bottom lines.
The uptick in materials costs comes as the U.S. and China have implemented tariffs on billions of dollars worth of their goods this year, though reports that President Donald Trump and Chinese counterpart Xi Jinping could resume trade talks at the G20 summit at the end of November has somewhat eased investor jitters.
3M (NYSE:MMM) swooped to a six-month low, down about 4%, as the company cut its 2018 profit guidance to no more than $10 a share after posting earnings and revenue that fell short of Wall Street expectations. Revenue fell for the first time in two years as growth slowed in many of the markets served by 3M.
United Technologies (NYSE:UTX), meanwhile, was rewarded for its upbeat quarterly results, beating both profit and revenue estimates for the third quarter and raising its full-year earnings guidance. Its shares rose 2%.
The S&P 500 Industrials index was down about 2.2%.