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McDonald's falls after E. coli outbreak

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Coca-Cola sees revenue boost from rising soda demand

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Boeing ( BA ) falls after results; contract vote awaited

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Tesla earnings expected after the bell

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Indexes down: Dow 0.70%, S&P 500 0.66%, Nasdaq 1.09%

(Updated at 11:55 a.m. ET/1555 GMT)

By Lisa Pauline Mattackal and Purvi Agarwal

Oct 23 (Reuters) -

Wall Street's main indexes fell on Wednesday as worries of a

less dovish Federal Reserve lifted Treasury yields, pressuring

megacap stocks and amplifying losses in McDonald's and Coca-Cola

shares.

McDonald's slumped 4.7% after an E. coli

infection linked to its Quarter Pounder hamburgers killed one

and sickened many.

Coca-Cola dipped 2.3% after the company

reiterated its annual profit growth forecast despite expecting

higher revenue. The broader Consumer Discretionary

sector dropped 1.1%.

Benchmark 10-year U.S. Treasury yields were at

three-month highs, putting stocks under pressure. Markets are

reassessing the size of interest-rate cuts over the next several

months against the backdrop of strong economic data and the

upcoming U.S. presidential election.

Rate-sensitive megacaps took a hit, with Nvidia ( NVDA )

down 2.2% and Apple off 2%, pulling Information Technology

stocks 1% lower and dragging on the tech-laden Nasdaq.

"The move higher in yields has actually been going on

ever since the (Federal Reserve) meeting. It's just in the past

week or so that the market has woken up to it," said Michael

O'Rourke, chief market strategist at JonesTrading, adding that

the 10-year yield is likely to stabilize around the 4.2% level.

"You also have to balance the fact that the U.S. equity

market is expensive on a valuation basis, so we could (be) due

for profit-taking."

Tesla, the first of the so-called Magnificent

Seven companies scheduled to report results after market close,

lost 1%.

The Dow Jones Industrial Average fell 300.90

points, or 0.70%, to 42,623.99, the S&P 500 lost 38.38

points, or 0.66%, to 5,812.82, and the Nasdaq Composite

lost 201.84 points, or 1.09%, to 18,371.29.

The benchmark index is set to log its third consecutive

day of decline, if losses hold.

U.S. markets are near record-high levels, but a

combination of earnings, a changing monetary policy outlook and

the upcoming presidential election will test the sustainability

of the recent rally and could trigger some market volatility,

analysts said.

The Fed's Beige Book is on the radar later in the day.

Richmond Federal Reserve President

Thomas Barkin

said the central bank's fight to return inflation to its 2%

target may take longer than expected to achieve, limiting how

far interest rates can be cut.

Boeing ( BA ) dropped 2.3% after reporting a quarterly

loss

of $6 billion owing to a crippling strike. Factory workers

at the troubled planemaker will vote later in the day on a new

contract proposal

that could end the more than five-week-long standoff.

Meanwhile, Starbucks ( SBUX ) pared steep premarket

losses to drop 0.5% after suspending its annual forecast on

Tuesday.

Semiconductor company Texas Instruments ( TXN ) gained

3.5% after its third-quarter profit beat forecasts, while AT&T ( T )

rose 3.8% after gaining more wireless subscribers than

expected in the third quarter.

Declining issues outnumbered advancers by a 3.17-to-1

ratio on the NYSE, and by a 2.66-to-1 ratio on the Nasdaq.

The S&P 500 posted 17 new 52-week highs and two new

lows, while the Nasdaq Composite recorded 43 new highs and 64

new lows.