Stocks dropped sharply on Tuesday as the Dow Jones Industrial Average tumbled by 362 points.
The Dow declined by 1.37% to 26,076. The S&P 500 was off 1.09% while the Nasdaq declined 0.86%.
The Dow's losses were multiplied by sharp declines for stocks in the healthcare sector after Amazon Inc. (AMZN) - Get Amazon.com, Inc. Report , Berkshire Hathaway Inc. (BRK.A) - Get Berkshire Hathaway Inc. Class A Report and JPMorgan Chase & Co. (JPM) - Get JPMorgan Chase & Co. Report said they would create a non-profit healthcare company for their U.S. employees. UnitedHealth Group Inc. (UNH) - Get UnitedHealth Group Incorporated Report , a Dow component, fell 4%, while CVS Health Corp. (CVS) - Get CVS Health Corporation Report fell 3.9%.
Shares in the energy sector also were lagging as U.S. crude prices Tuesday fell 1.8% to $64.36 a barrel. Chevron Corp. (CVX) - Get Chevron Corporation Report was down 2.5, while fellow Dow component Exxon Mobil Corp. (XOM) - Get Exxon Mobil Corporation Report slid 1.2%.
Apple Inc. (AAPL) - Get Apple Inc. Report shares were down nearly 1% on Tuesday, following their biggest single-day drop in more than a month on Monday as investors continued to question the strength of demand for its flagship iPhone X ahead of the tech giant's first-quarter earnings later this week.
Pfizer Inc. (PFE) - Get Pfizer Inc. Report posted fourth-quarter adjusted profit of 62 cents a share, 6 cents above estimates, while revenue of $13.70 billion also topped forecasts. The drug company also issued an upbeat forecast for 2018. The stock declined 3% on Tuesday.
McDonald's Corp. (MCD) - Get McDonald's Corporation Report earned an adjusted $1.71 a share in the fourth quarter, beating forecasts of $1.59. Global same-store sales in the quarter rose 5.5%, higher than estimates of an increase of 4.9%. Same-store sales in the U.S. jumped 4.5%. The stock was down 3%.
Harley-Davidson Inc. (HOG) - Get Harley-Davidson, Inc. Report fell 8% after the motorcycle maker said for 2018 it anticipated motorcycle shipments to be about 231,000 to 236,000 motorcycles, below analysts' estimates.
MetLife Inc. (MET) - Get MetLife, Inc. Report tumbled 8.6% after the insurance company said the U.S. Securities and Exchange Commission was investigating reports that some of its customers hadn't received annuity payments and after it postponed the release of its fourth-quarter earnings.
Thomson Reuters Corp. (TRI) - Get Thomson Reuters Corporation Report said Tuesday that it was in "advanced discussion" with Blackstone Group LP (BX) - Get Blackstone Inc. Report over the sale of its financial and risk business.
Toronto-based Thomson confirmed earlier reports of talks with the private-equity group, with Reuters reporting the sale would focus on 55% of the F&R business and value Thomson's biggest unit by revenue at $17 billion. Thomson Reuters would retain a 45% stake in the business, and would keep full ownership of both its news and legal and tax and accounting divisions. Blackstone would pay around $4 billion in cash for the division and contribute a further $13 billion through new debt taken on by the partnership, Reuters reported. Thomson Reuters rose 7%.
SAP SE (SAP) - Get SAP SE Report said Tuesday that it acquired Callidus Software Inc. (CALD) in a deal worth around $2.4 billion that extends the German software company further into cloud computing. Callidus shares jumped 10%.
Benchmark 10-year notes were yielding 2.714% on Tuesday after hitting an April 2014 high of 2.72% on Monday as investors fretted about faster inflation amid the resurgent global economy.
Janet Yellen will preside over her final meeting as Federal Reserve chair on Tuesday and Wednesday, Jan. 31. The Fed isn't expected to raise rates at the meeting but economists expect the central bank to lift rates when it next meets in March. An announcement on interest rates is expected Wednesday afternoon.
Donald Trump is scheduled to deliver his first "State of the Union" address on Tuesday, and he is expected to highlight immigration and national security issues, discuss trade deals and reveal some of his infrastructure plans.
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