Alphabet Plunge Weighs on US Stocks

US stocks opened lower after Alphabet reported weaker-than-expected third-quarter revenue and strained free cash flow, with its shares falling roughly 11 to 13 percent. The Dow Jones dropped 388.97 points, or 0.74 percent, to 52,086.13. The S&P 500 fell 44.37 points, or 0.57 percent, to 7,699.61, and the Nasdaq Composite lost about 1.3 to 1.4 percent. Caterpillar shares slid roughly 10 to 12 percent after a fourth-quarter outlook of moderate sales growth. Microsoft rose on cloud growth while keeping capital expenditures in check. Amazon fell 3.1 percent and Intel 2.2 percent ahead of their reports. The Federal Reserve held its federal funds target at 3.75 to 4.0 percent. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, preferring a quarter-point hike instead—the split on the decision. The Fed said it will deliver price stability. Commerce Department data showed third-quarter GDP grew 3.4 percent, faster than expected, while September PCE inflation came in line with expectations but stayed above the 2 percent target. Eli Lilly jumped 7.3 percent after raising its revenue outlook and Merck advanced 3.3 percent after lifting guidance, cushioning the broader decline.