A Black Friday for Stocks

Breadth was decidedly negative to end the week. On the New York Stock Exchange 4.10 billion shares changed hands, and volume on the Nasdaq reached 2.42 billion shares. Losers outpaced winners roughly 5 to 1.

Ahead of the open, earnings came in at a rapid clip, including results from several Dow components. Caterpillar (CAT Quote) dragged on the index after missing Wall Street's target for third-quarter earnings. The company also cut its full-year outlook to a range below forecasts and offered gloomy comments about the U.S. economy.

Shares shed $4.09, or 5.3%, to end at $73.57.

Fellow industrial giants 3M (MMM Quote) and Honeywell (HON Quote) also stumbled after their profit reports. 3M beat the Thomson First Call earnings estimate, but fell short of revenue targets. Honeywell posted in-line results.

3M dropped 8.6% to $86.62, and Honeywell finished down 3.9% at $58.32.

Another Dow component, McDonald's (MCD Quote), fared better, with shares down 0.7% at $56.42 after the fast-food giant posted profits that met recently raised targets.

Treasury prices rallied again as traders moved into the so-called safe haven of the bond market. The 10-year note was up 22/32 in price, cutting the yield to 4.40%. The 30-year bond added 1-11/32 in price, yielding 4.69%.

"The Fed should lower rates when it meets at the end of the month, but the lower yields on the bonds don't necessary mean that," said John Canavan, market analyst with Stone & McCarthy Reseach Associates. "It's a reaction to what equities did this week as well as growing concerns in the credit market. It's far from over."