* 3M's outlook, McDonald's weak sales worry investors
* Kroger profit falls short, shares down 12 pct
* Dow off 1 pct, S&P 500 off 1 pct, Nasdaq off 0.8 pct
* For up-to-the-minute market news, click []
(Adds Texas Instruments Inc shares after the bell in paragraph
7)
By Angela Moon
NEW YORK, Dec 8 (Reuters) - U.S. stocks fell on Tuesday
after disappointing corporate news from 3M Co and McDonald's,
while negative developments in global credit markets caused a
shift to safe-haven assets.
Equities faced pressure from a stronger U.S. dollar after
Dubai's unresolved debt problems and Fitch Ratings' downgrade
of Greece's bond rating dented risk appetite.
U.S. corporate news raised some doubts about consumer
spending, a key requirement for the recovery to take hold.
Diversified manufacturer 3M <MMM.N> fell 1 percent to
$77.11 after a weaker-than-expected outlook, while McDonald's
<MCD.N> closed down 2.1 percent at $60.61 after reporting
disappointing sales for a second straight month. For details,
see[] []
"We are seeing signs that indicate the global economy is
not recovering as fast as expected, and at times of
uncertainty, people run to the safe dollar," said Keith
Springer, president of Capital Financial Advisory Services in
Sacramento, California.
The Dow Jones industrial average <> fell 104.14 points,
or 1.00 percent, at 10,285.97. The Standard & Poor's 500 Index
<.SPX> closed down 11.31 points, or 1.03 percent, at 1,091.94.
The Nasdaq Composite Index <> shed 16.62 points, or 0.76
percent, at 2,172.99.
After the closing bell, Texas Instruments Inc <TXN.N>
raised its fourth-quarter earnings target and said revenue
would be at the high end of its forecast range, but shares of
the chipmaker fell 2.4 percent to $25.71 as some investors had
even higher expectations. []
In another sign on Tuesday of weak consumer spending,
Kroger Co <KR.N> shares dipped 11.9 percent to $20.13 after the
supermarket operator reported quarterly results far below
expectations and cut its full-year forecast. [].
The S&P Consumer Staples index <.GSPS> slipped 1.2
percent.
The greenback <.DXY> gained 0.5 percent against a basket of
six other major currencies, pressuring risk-associated assets
such as U.S. crude oil <CLc1>, which dipped 1.4 percent to
$72.96 a barrel.
Energy shares were among the top drags. Exxon Mobil <XOM.N>
was down 1.1 percent at $72.95 and Chevron <CVX.N> fell 1.8
percent to $76.76. The S&P energy index <.GSPE> shed 1.7
percent.
Another source of nervousness about the global recovery
was an unexpected decline in German industrial output.
[].
The disappointing earnings news overshadowed optimism late
Monday from FedEx Corp <FDX.N>, which gained 2.7 percent to
$89.88 after forecasting second-quarter earnings would easily
beat analysts' estimates. []
Volume was light on the New York Stock Exchange, with 1.18
billion shares changing hands, below last year's estimated
daily average of 1.49 billion, while on the Nasdaq, about 1.97
billion shares traded, also below last year's daily average of
2.28 billion.
Declining stocks outnumbered advancing ones on the NYSE by
a ratio of 20 to 9, while on the Nasdaq, 18 stocks fell for
every eight that rose.
(Editing by Kenneth Barry)
