Red October continued Tuesday morning as the Dow Jones Industrial Average is on pace to have its worst month since August 2015, falling over 400 points in the early session.

The S&P 500 as well as the Nasdaq Composite both followed the Dow’s lead, dropping over 50 points and 150 points, respectively. The S&P touched its lowest level in five months, while the Nasdaq is having its worst month since 2008.

Big decliners in the Dow included Caterpillar Inc, which fell more than 8% on a gloomy outlook for the construction equipment manufacturer. Caterpillar anticipates full-year adjusted earnings to come in at around $11 to $12 per share, which falls within the range of the $11.64 per share expected by Wall Street.

For the third quarter itself, Caterpillar earned $1.73 billion, which translates to $2.88 per share, slightly besting analyst expectations of $2.84 per share. Revenue rose higher to $13.51 billion, beating expectations of $13.26 billion.

Nonetheless, the company cited rising manufacturing costs and tariffs could materially hurt its business going forward.

“Manufacturing costs were higher due to increased material and freight costs,” the company said in a statement Tuesday. “Material costs were higher primarily due to increases in steel prices and tariffs.”

“This is likely to be a negative for Caterpillar, but also for industrials broadly that are having a hard time living up to heightened expectations,” said Larry De Maria, an analyst at William Blair & Co. “Markets are in a precarious situation, and under pressure again this morning, and Caterpillar’s stock will probably further weigh it down.”

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