Dow Jones falls over 420 points

A seemingly innocuous comment from a Caterpillar executive prompted the markets to drop more than 2 percent Tuesday

Richard Drew Associated Press File A seemingly innocuous comment from a Caterpillar executive prompted the markets to drop more than 2 percent Tuesday

Construction equipment manufacturer Caterpillar, a barometer for the state of the economy and the stock market, saw a stock increase after reporting earnings and revenue that surpassed market expectations.

The TSX posted 10 new 52-week highs and five new lows.

Higher rates, which are rising on expectations of stronger USA economic growth and inflation, are also helping shore up the dollar. Google parent Alphabet fell almost 5 percent and closed the day at $1,022.64.

The S&P 500 gained 0.2 per cent, while the Nasdaq closed slightly below breakeven point. Bond prices fell again Wednesday, sending yields higher.

For consumers, rising rates means things like mortgages and credit card debt are more expensive. "However, with U.S. 10-year treasury yields topping 3% for the first time since 2014, fears have been stoked over whether we will see investors shift assets out of stocks and into bonds".

TheStreet reports that Halverson also said that following the steel and aluminum tariffs announced a few weeks ago, there will most likely be losses stemming from other commodities that dependent upon the pricing from that market. The stock market had already been spooked by a climb in bond yields earlier in the year, sliding sharply in February.

3M said raw materials costs are rising, especially for materials derived from crude oil, whose price has been rising, and transportation and logistics expenses are rising as well.

The recent slide down in equities is occurring even though a string of strong corporate earnings.

Boeing jumped 4.2 percent, helping the Dow Jones industrial average break a five-day losing streak.

"I think what investors had hoped the benefit from taxes would get redeployed back into the company". Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, said that hasn't happened yet.

Apple Inc shares lost per cent as worries over softening demand for high-end smartphones were underscored as Corning Inc reported a drop in screen glass sales for the first time in at least four quarters.

Facebook will report earnings after the market close on April 25. "Investors are saying, 'You know, the group has had a tremendous run over the last two to three years, maybe we should take some money off the table here'". Major corporations such as United Technologies, Verizon and Coca-Cola reported better-than-expected earnings as well.

Cree swept ahead 11% after earnings of 4 cents per share and a 4% rise in revenue for its fiscal third quarter easily topped expectations.

Stocks skyrocketed in 2017 on hopes that USA tax cuts would spur more economic growth.

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