Investors are in a lousy mood on Tuesday.
Apparently good results from Dow components Caterpillar, Coca-Cola and United Technologies ( did not suit Wall Street. The Dow lost after opening with a gain of 1 )
The Dow has now fallen five consecutive days and has abandoned its profits for the year.
But why does the Dow fluctuate by nearly 650 points within a few hours? After investors took a closer look at the results, they focused on the negatives.
Caterpillar ( For example, warned that profit margins this year would probably not be higher than today. )
And Coke ( Investors were disappointed that lower prices could boost sales – though Diet Coke eventually came back to growth. Caterpillar shares plunged 6%, while Coke's share fell more than 2%. )
Verizon was one of the few companies that showed strong results on Tuesday that seemed to have no reservations – and it was rewarded for that. Shares of Verizon ( increased by 2%. )
But other income reports were downright bleak. 3M ( Another Dow component, lowered the outlook for the year. That dropped his share by almost 10%. Insurance Company ) Travelers ( also in the Dow, fell 4% after the forecasts of profit were missed. )
All this negativity has also pulled down other old-school, classic-industrial-Dow companies. Boeing  ( and ) DowDuPont ( both fell by more than 3%. )
And tech investors were disappointed by increased spending at Google Parent Alphabet.
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Even though Alphabet ( showed solid earnings growth and revenue, which slightly outperformed Wall Street estimates, the stock fell 5% – and that helped the S & P 500, Nasdaq and Tech Titans ) Apple () Amazon  [) Microsoft [ and ) Facebook ( , )
It did not help that the 10-year US government bond yield rose above 3% for the first time in more than four years on Tuesday morning.
If this benchmark bond continues to rise, lending money to mortgages and auto loans and earning profits from large US companies could be more expensive – especially as the Federal Reserve is expected to continue raising short-term interest rates.
Nevertheless, an expert said that investors may overreact to the movements in the bond market.
"I do not know if there's magic for the 3.0% level, except that it's a nice round number," said Jeff Mills, co-chief investment strategist, PNC Financial Services Group. "There is no rule that says rising interest rates for the stock market are bad."
Mills added that since 1928, stocks were actually a bit better when interest rates rose. The market has grown by an average of 11% over the years in which interest rates rose, and by 9% in years when interest rates have fallen.
But nervous investors do not seem to care about historical market data right now. They sell first and ask questions later.
CNNMoney (New York) First published April 24, 2018: 1:47 ET