INSTANT VIEW-Wall Street shares resume tumble

NEW YORK, Oct 23 (Reuters) - Wall Street stocks tumbled more than 2 percent on Tuesday as disappointing forecasts from industrial bellwethers Caterpillar and 3M piled on to concerns over Saudi Arabia's diplomatic isolation, Italy's finances and trade-war fears.

All the three major Wall Street indexes were trading below their 200-day moving averages, a key technical indicator of long-term momentum and all 11 major S&P sectors were in the red, continuing what has been a punishing month for U.S. stocks.



We have been looking at this and saying there are lots of uncertainties and concerns whether it is the Fed increasing interest rates or slowing growth in China, but its solid earnings growth and economic growth that are the longer-term drivers. Well today you have got some big earnings misses and I think that has led investors to be concerned about will we continue to see solid earnings growth, especially with companies having beat the expectations but now saying the future doesnt look quite as good. Lowering guidance is probably the more important part of what we heard this morning.

MARKET REACTION STOCKS: The Dow was down 524 points, or 2.08 percent. The S&P 500, was 2.26 percent lower. The tech-heavy Nasdaq was down 2.61 percent, and reentered correction territory on an intraday basis by trading more than 10 percent below its August 29 closing high.

TREASURIES: The yield on the U.S. 10-year Treasury note fell to 3.1166 percent. VIX: The Cboe volatility index jumped 22 percent to 23.71. Dollar: The U.S. dollar index was off 0.01 percent (Compiled by Alden Bentley)