Healthcare and industrial stocks led the way lower. The major indices fell for the fifth time in the last six sessions. Bobbi Rebell reports.
Stock indices on Wall Street tumbled for the fifth time in six sessions. Industrial and healthcare shares led the way down. Caterpillar was the biggest drag on the Dow. The construction equipment maker chopped its revenue forecast for this year. And it said it could slash up to 10,000 jobs through 2018. Vespula Capital's Jeff Tomasulo: SOUNDBITE: JEFF TOMASULO, CEO AND FOUNDER, VESPULA CAPITAL (ENGLISH) SAYING: "It kind of validates what's going on in China and the emerging markets. We have major layoffs going on at Caterpillar, so the infrastructure that supposedly is building in China isn't happening at the pace that it was in the past." Scholastic's quarterly sales rose modestly, and shares rose. But the publisher of the "Harry Potter" series reported its losses had widened. New home sales rose more quickly than expected in August. But KB Home's quarterly profit fell partly due to higher costs for land, though its stock recovered from intraday losses. Other data also reflected the economy's resiliency. Jobless claims barely rose last week, and a business investment gauge dipped slightly last month. European shares were dragged lower by auto stocks, as investors sold off Fiat Chrysler and BMW amid the Volkswagen auto emissions scandal.