Trade war sinks the Dow

The Dow is set to open down 400 points. S&P 500 and Nasdaq futures predict a 1.3% decline at the open.

A number of large American companies with exposure to growing trade disputes reported their quarterly financial results Tuesday. Investors are worried that a slowing Chinese economy and an escalating trade war could pinch profits.

Caterpillar (CAT) and 3M (MMM) reported results that missed Wall Street analysts' expectations. Both export their products overseas -- and both are components of the Dow. United Technologies (UTX) also reported Tuesday morning.

Also reporting is Harley Davidson (HOG), the motorcycle manufacturer that plans to shift some manufacturing overseas in response to the threat of tariffs on US goods.

All three of those stocks were down in premarket trading ahead of their financial results.

Verizon (VZ) and McDonald's (MCD), also Dow components, are set to report before the bell Tuesday.

Overseas markets were sharply lower Tuesday. Hong Kong's Hang Seng index fell 3% in trading there, and Japan's Nikkei fell almost as much. The Dax in Germany was down 1.7% in early trading in Europe.

October has been a rocky month for stocks. The Dow is on pace for its worst month in more than two years.

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