Oct. 21 (Bloomberg) -- U.S. stocks slid as companies from Texas Instruments Inc. to Freeport-McMoRan Copper & Gold Inc. reported profit and revenue that failed to meet analysts' estimates.

Texas Instruments, the second-largest U.S. semiconductor maker, declined 6.3 percent, while Sun Microsystems Inc. retreated 17 percent after reporting a loss and posting revenue that fell short of consensus projections. Freeport-McMoRan, the largest publicly traded copper producer, slumped 11 percent. Western Union Co. tumbled 18 percent after the world's biggest money-transfer business withdrew long-term profit targets because of uncertain global markets.

``Investors are focusing on the weakening economy,'' said Doug Peta, a market strategist at J&W Seligman & Co. in New York, which manages about $15 billion. ``The third-quarter earnings season is going to be a rough stretch for the market because just about every company is going to provide fourth- quarter guidance that's muted at best.''

The Standard & Poor's 500 Index lost 30.35 points, or 3.1 percent, to 955.05. The Dow Jones Industrial Average tumbled 231.77, or 2.5 percent, to 9,033.66. The Nasdaq Composite Index decreased 73.35, or 4.1 percent, to 1,696.68. More than five stocks fell for each that rose on the New York Stock Exchange.

Rebound Halted

The decline halted a rebound in the S&P 500 from an almost 5 1/2 year low on Oct. 10. The benchmark index for U.S. equities climbed 9.6 percent from then through yesterday as money-market interest rates declined and Federal Reserve Chairman Ben S. Bernanke endorsed another economic-stimulus package.

At least 139 S&P 500 companies report third-quarter earnings this week, including Apple Inc. after the market closes today and McDonald's Corp. tomorrow. Profits fell 27 percent on average for the 107 companies in the index that released results as of this morning, according to data compiled by Bloomberg.

Today's earnings reports overshadowed another retreat in money market rates. The London interbank offered rate, or Libor, that banks charge each other for three-month loans in dollars dropped 23 basis points to 4.06 percent, the British Bankers' Association said. The overnight rate slid 23 basis points to 1.28 percent, below the Federal Reserve's target of 1.5 percent for the first time since Oct. 3.

The dollar rose to a 19-month high against the euro on bets the European Central Bank will reduce interest rates at a faster pace than the Fed. The surge in the U.S. currency weighed on shares of commodity producers, technology companies and others that rely on overseas sales to boost earnings.

Money-Market Plan

Financial companies in the S&P 500 rose as much as 1.4 percent before joining the other nine main industry groups by declining. The Fed today said it would help finance purchases of up to $600 billion in assets from money-market mutual funds. The funds were hit with redemptions after the Sept. 15 bankruptcy filing by Lehman Brothers Holdings Inc. caused the first principal loss for investors in a money-market fund in 14 years.

``The liquidity infusions are so massive that at some point they'll take hold and make a difference,'' said Mike Allocco, partner at Brazos Capital Management LP in Dallas, which manages $400 million. ``I'm more worried about missing an upturn than about a significant downturn'' in stocks.

KeyCorp, Ohio's third-largest bank, surged 12 percent to $10.95 after saying it expects to apply for a portion of the $250 billion in funds being offered by the U.S. government to recapitalize the banking system. M&T Bank Corp., Regions Financial Corp. and National City Corp. rose at least 2.7 percent after they also said they're considering selling stakes to the government. Third-quarter profit slumped at M&T and Regions, while National City's loss widened.

Texas Instruments, Sun

Texas Instruments lost $1.13 to $16.85, a five-year low. Fourth-quarter sales will be $2.83 billion to $3.07 billion and profit will be 30 cents to 36 cents a share, the company said. Analysts in a Bloomberg survey predicted profit of 44 cents a share on sales of $3.36 billion.

Sun fell $1 to $4.78, its steepest loss since May and lowest price since 1995. The maker of server computers said fiscal first-quarter sales probably amounted to $2.95 billion to $3.05 billion. That missed the average of $3.15 billion expected by analysts surveyed by Bloomberg.

Western Union lost $3.63 to $16.75. The ``uncertainty'' in economies around the world and a weakening euro forced the Englewood, Colorado-based company to retract goals given in June of as much as 12 percent revenue growth and 18 percent earnings per share growth.

Tech Slump

Technology companies in the S&P 500 fell 5.6 percent as a group and were the biggest drag on the index among the 10 main industry groups. Energy companies lost 4.3 percent as crude oil resumed its slide, falling 4.5 percent to $70.89 a barrel in New York. Its close at $69.85 on Oct. 16 was the lowest since August 2007.

DuPont Co. led materials companies in the S&P 500 to a 5.7 percent retreat, falling $2.89 to $33.28. The third-biggest U.S. chemical maker forecast slowing sales in North America and Western Europe.

Freeport-McMoRan and AK Steel Holding Corp., the largest U.S.-based steelmaker by market value, fell after forecasting difficult economic conditions that may hurt profits. Freeport lost $3.98 to $32.74 and AK Steel tumbled 7.6 percent to $13.96.

`Further Deterioration'

Citigroup Inc. was the biggest drag on a gauge of financials, slumping 6 percent to $14.18 after Goldman Sachs Group Inc. said the bank may not report a profit until late next year as credit conditions worsen.

``It will be difficult for Citi to generate profitability over the next 12 months as additional writedowns, lower levels of capital markets activity, and further deterioration in credit quality trends will continue to weigh on the firm's operating results and capital ratios,'' William Tanona, a Goldman banking analyst, wrote in a note to clients.

Ford Motor Co. slid 6.9 percent to $2.17. Billionaire investor Kirk Kerkorian's Tracinda Corp. said it may sell all of its remaining 133.5 million shares in the second-largest U.S. auto company after divesting 7.3 million for an average price of $2.43. Since Kerkorian disclosed his initial investment, the value of what became a 6.4 percent stake fell by about two- thirds.

American Express, 3M

American Express Co. gained 8.4 percent to $26.39 for the biggest gain in the Dow average. The largest U.S. credit-card company by purchases reported third-quarter profit that beat analysts' estimates, and set aside less than expected for future loan losses. Cardholders failed to repay loans in the third quarter at almost twice the rate of a year earlier, American Express said.

3M Co. rose 4.4 percent to $60.04. The maker of more than 55,000 products from Post-it Notes to electronic road signs reported third-quarter earnings that topped analysts' average estimates, aided by overseas demand for safety gear.

Wall Street analysts forecast an 11 percent drop in third- quarter earnings in a Bloomberg survey. Profits for companies in the S&P 500 are expected to decline 5 percent this year, compared with a 2.7 percent decrease predicted a month ago, the data show.

The S&P 500, the benchmark for U.S. equities, trades at 11.8 times estimated earnings over the coming 12 months, compared with a price-to-earnings multiple of 16.6 at the end of last year.

`Too High'

``People are realizing that forward estimates are too high,'' said Noman Ali, a money manager at MCF Global Investment Management in Toronto, which oversees $6 billion of U.S. equities. ``The economy globally is going into recession. There's no guarantee all this capital being injected will ultimately result in higher lending.''

The Dow is down 32 percent this year and the S&P 500 is off 35 percent as credit losses and asset writedowns stemming from the collapse of the subprime mortgage market top $661 billion at financial firms worldwide.

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net.

Last Updated: October 21, 2008 16:29 EDT