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McDonald's falls after E. coli outbreak

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Texas Instruments ( TXN ) up as profit beats forecasts

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Boeing ( BA ) falls after results; contract vote awaited

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Tesla earnings expected after the bell

(Updates at 4pm ET/8pm GMT)

By Lisa Pauline Mattackal, Purvi Agarwal and Carolina Mandl

Oct 23 (Reuters) -

Wall Street closed lower on Wednesday, as climbing Treasury

yields pressured megacap stocks and investors grew less

confident about 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 presidential election.

"The market is struggling to digest this latest backup

in yields," said Adam Turnquist, chief technical strategist for

LPL Financial, adding higher rates are pressuring stocks.

Among rate-sensitive megacaps, Nvidia ( NVDA ), Apple ( AAPL )

, Meta Platforms ( META ) and Amazon ( AMZN ) slid,

pulling Information Technology stocks lower and

dragging on the tech-laden Nasdaq.

Out of the 11 S&P sub sectors, only utilities and real

estate posted more noticable gains.

According to preliminary data, the S&P 500

lost 53.61 points, or 0.92%, to end at 5,797.59 points,

while the Nasdaq Composite lost 297.15 points, or 1.60%,

to 18,275.98. The Dow Jones Industrial Average

fell 415.29 points, or 0.97%, to 42,509.60.

McDonald's tumbled after an E. coli infection

linked to its Quarter Pounder hamburgers killed one and sickened

many. Coca-Cola fell after the company reiterated its

annual profit growth forecast even though it expected higher

revenue.

The broader consumer discretionary sector also

dropped.

"You have a market that had gotten up to new all time

highs so portfolio managers are looking around and saying: maybe

I should take some profits," said Thomas Martin, senior

portfolio manager, Globalt Investments.

Boeing ( BA ) dropped 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.

Semiconductor company Texas Instruments ( TXN ) gained

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

rose after gaining more wireless subscribers than expected in

the third quarter.

Tesla, the first of the so-called Magnificent

Seven companies scheduled to report results after market close,

closed down.

The benchmark S&P 500 had 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.

The Fed

"Beige Book" survey showed U.S. economic activity was little

changed

from September through early October while firms saw an

uptick in hiring.