Stocks Fell on Concerns about Rate Hike

U.S. stocks fell on Tuesday, weighed down by concerns about some upbeat U.S. economic data that fueled expectations a rate hike could come sooner rather than later. At close, the Dow Jones industrial average fell 190.48 points, or 1.04%, to 18,041.54. The S&P 500 lost 21.86 points, or 1.03%, to 2,104.20 and the Nasdaq Composite dropped 56.61 points, or 1.11%, to 5,032.75.

Federal Reserve Vice Chairman Stanley Fischer said policy makers will consider global growth as they begin to raise interest rates, and that fthey could increase borrowing costs more gradually should the world economy falter.

Hormel Foods Corp. (HRL) said it has agreed to buy privately-held Applegate Farms LLC for $775 million. Hormel said it expects the deal to be neutral to its 2015 per-share earnings, but to add 7 cents to 8 cents a share to its 2016 earnings.

Workday Inc. (WDAY)’s first-quarter results topped Wall Street estimates and the cloud-based business provided a second-quarter sales outlook. The company reported an adjusted first-quarter loss of 2 cents a share on revenue of $251 million. Workday estimated second-quarter revenue of $270 million to $274 million. Analysts expect $272.3 million.

TiVo Inc. (TIVO) reported better-than-expected first-quarter profit and sales. TiVo said it had net income of $7.88 million, or 8 cents a share, in the quarter to end April, down from $8.12 million, or 7 cents a share, in the year- earlier period. Revenue climbed to $114.7 million, from $107.1 million.