U.S. stocks were beaten up during Tuesday's session, though markets were able to come up off of session lows for the day.
The Dow Jones Industrial Average fell for the fifth consecutive session, giving back all of the gains the blue-chip index has made this year. The Dow closed the session down 1.73%, or 423 points to 24,025, while the Nasdaq declined 1.7%, or 121 points to 7,007 and the S&P 500 fell 1.34%, of 36 points to 2,635.
Caterpillar Lags and Brings Industrials Down With It
Caterpillar Inc. (CAT) was taking the entire industrial sector on a wild ride Tuesday following its first-quarter earnings call.
Shares started the day off in positive territory, rising as much as $160.85, but the stock dipped 5.5% to $145.51 after Chief Financial Officer Bradley Halverson let the public know that the company expects "steel and other commodity costs to be a headwind all year."
Caterpillar wasn't the only industrial to suffer on the news however, as companies in the sector fell across the board Tuesday.
"Price versus material costs, were very favorable on the first quarter," Amy Campbell, director of investor relations at Caterpillar, said during the call. "We expect it to be favorable for the full year. But for the balance of the year we would expect material costs increase to be greater than price realization."
Dow, S&P Give Up All 2018 Gains as Markets Reverse Course
The Dow Jones Industrial Average was down nearly 300 points Tuesday afternoon after spending most of the morning in positive territory as the blue-chip index has officially given back all of the gains it has made so far in 2018.
The S&P 500 also gave up its 2018 gains, falling 0.84%, or 23 points, to 2,648. The Nasdaq also fell Tuesday afternoon, dropping 1.37%, or 98 points, to 7,031.
Large industrials were responsible for the decline. Caterpillar (CAT) began trading 4% lower following a dismal earnings call after starting the day up 4% following its earnings release. Meanwhile, 3M (MMM) fell about 8% after the company lowered its full-year profit forecast.
Amazon Launches In-Car Delivery Service in 37 Cities
Amazon (AMZN) announced the launch of its in-car delivery service Tuesday, offering Prime members who opt-in to have their packages delivered directly to the trunk of their cars.
People interested in the service have to download the Amazon Key app to allow couriers access to their vehicles. The program is supported by most 2015 model year or newer Chevrolet, Buick, GMC, Cadillac (GM) and Volvo vehicles with an active connected car service like OnStar.
This is the next step in Amazon's strategy to securely deliver packages. Earlier this year the company unveiled a program to allow couriers to deliver packages inside people's homes.
3M Drops Following Earnings Miss
The Post-it note, industrial coatings, and ceramics maker reported revenue of $8.28 billion, topping analysts' $8.08 billion expectations. Earnings for the quarter totaled $2.50 per share on an adjusted basis, matching Wall Street's expectations.
However, the company also lowered its full-year earnings guidance to between $1020 and $10.55 per share from $10.20 and $10.70 per share.
YouTube Relies on Computers to Censor Offensive Content
Of the 8.28 million videos that YouTube took down in the fourth quarter, 80% were flagged by the company's computer programs, Google (GOOGL) revealed in its earnings call.
This is the first time the company has publicly disclosed the number of videos it removed in a quarter. The move is in response to a brief advertiser exodus that was prompted after they realized that their ads were being played before or after offensive videos.
In December, Google announced that it was hiring 10,000 people in 2018 to address policy violations across its platforms.
Google shares were down 0.83% premarket.
Verizon Tops Earnings Expectations, Stock Rises Premarket
Verizon (VZ) shares were rising 3.7% premarket after the company reported earnings of $1.17 per share, topping analysts $1.10 per share expectations.
The company also reported revenue of $31.78 billion vs. analysts $31.25 billion expectations.
The company reported a net increase of 260,000 retail postpaid connections, vs. the 165,000 that Wall Street expected.
Takeda Closes in on Sealing $60 Billion Bid for Shire
Takeda sweetened its bid for the company, sources told Bloomberg. The two companies have been hammering out the details and could announce a preliminary agreement as soon as Tuesday.
Takeda would become one of the world's top pharmaceutical companies if the deal for U.K.-based Shire if the acquisition goes through.
Markets were looking to get their groove back Tuesday after a slight selloff Monday and U.S. futures were indicating strong opens across the board.
Dow futures were rising 0.57%, indicating an open 138 points higher, while Nasdaq futures rose 0.55%, indicating an open 37 points higher, and S&P futures rose 0.54%, indicating an open 15 points higher.
World markets were also rising, with Asia leading the way. The Shanghai Composite gained 1.99%, the Hang Seng gained 1.26% and the Nikkei rose 0.86%.
In Europe, markets were mostly higher, with the DAX and FTSE 100 both rising 0.26%. The CAC 40 was the lone laggard, falling 0.06% with about 4 hours left in trading.