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McDonald's falls after E. coli outbreak

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Coca-Cola boost revenue outlook, keeps profit forecast

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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 %, S&P 500 %, Nasdaq %

(Updated at 2:07pm ET/6:07pm GMT)

By Lisa Pauline Mattackal, Purvi Agarwal and Carolina Mandl

Oct 23 (Reuters) -

Wall Street fell on Wednesday, led lower by megacap stocks

as U.S. Treasury yields climbed and investors grew less

confident about the outlook for strong rate cuts from the

Federal Reserve, while corporate news pressured McDonald's and

Coca-Cola.

Benchmark 10-year U.S. Treasury yields reached a

three-month high with investors reassessing the Fed rate-cut

outlook over the next few months against the backdrop of strong

economic data and the upcoming U.S. presidential election.

"What's driving things more than anything else is the

backup in rates," said Thomas Martin, senior portfolio manager,

Globalt Investments, adding the closer the electoral race gets,

markets are likely to get more jittery.

Among rate-sensitive megacaps, Nvidia ( NVDA ) fell 3.9%

and Apple ( AAPL ) slid 3.37%, pulling Information Technology

stocks 2.5% lower and dragging on the tech-laden Nasdaq.

McDonald's slumped 5.24% after an E. coli

infection linked to its Quarter Pounder hamburgers killed one

and sickened many. Coca-Cola fell 1.66% after the company

reiterated its annual profit growth forecast despite expecting

higher revenue.

The broader Consumer Discretionary sector

dropped 2.22%.

"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," said Michael O'Rourke, chief market

strategist at JonesTrading.

Tesla, the first of the so-called Magnificent

Seven companies scheduled to report results after market close,

lost 2.53%.

At 2:07 p.m. the Dow Jones Industrial Average

fell 564.63 points, or 1.32%, to 42,360.26, the S&P 500

lost 81.21 points, or 1.39%, to 5,769.99 and the Nasdaq

Composite lost 406.65 points, or 2.19%, to 18,166.48.

The benchmark S&P 500 appeared headed for its third

consecutive daily decline.

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 rally and could

stoke volatility, analysts said.

Richmond Fed President

Thomas Barkin

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

target may take longer than expected, limiting interest rate

cuts.

Boeing ( BA ) dropped 1.12% after the planemaker

reported a quarterly

loss

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

at Boeing ( BA ) will vote later in the day on a new

contract proposal

that could end the standoff after more than five weeks.

Starbucks ( SBUX ) fell sharply before the opening bell

but pared losses and was down 0.72% the day after the coffee

shop chain suspended its annual forecast.

Semiconductor company Texas Instruments ( TXN ) gained

3.20% after its third-quarter profit beat forecasts, while AT&T ( T )

rose 3.56% after gaining more wireless subscribers than

expected in the third quarter.

Declining issues outnumbered advancers by a 4.92-to-1

ratio on the NYSE. There were 82 new highs and 54 new lows on

the NYSE.

The S&P 500 posted 23 new 52-week highs and 4 new lows

while the Nasdaq Composite recorded 50 new highs and 81 new

lows.