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Stocks extend losses as railroads sink industrial companies

Stocks extended their losses into a second day on Wednesday as railroad operator CSX had its biggest drop in 11 years, pulling other industrial companies down with it. Banks also fell as investors worried that lower interest rates will hurt their profits going forward. Investors expect the Federal Reserve to cut interest rates for the first time in a decade at their next policy meeting in two weeks. The yield on the 10-year Treasury fell to 2.05 percent from 2.12 percent late Tuesday as investors headed for less risky holdings. CSX plunged 10.3 percent after saying it now expects its revenue to decline as much as 2 percent this year, after previously saying it expected growth. Investors read that as trouble for the entire industry and sent the stocks of other railroad operators lower. Union Pacific sank 6.1 percent and Norfolk Southern dropped 7.5 percent. Utilities, which are also considered a safer bet, made late gains and held up better than any other industry. Abbott Laboratories gained 3.1 percent and pushed health care stocks higher after the maker of infant formula and drugs raised its forecast for the year. UnitedHealth Group also rose. Health care was the only sector other than utilities to finish with modest gains. Technology stocks gave up early gains and finished lower along with the rest of the market. Netflix, which reported its results after the close of regular trading Wednesday, plunged 10 percent in after-hours trading after reporting a dramatic slowdown in growth during its traditionally sluggish spring season.