Wall Street pulled lower by 3M, McDonald's

NEW YORK (Reuters) - Stocks fell on Tuesday on a disappointing outlook from 3M (MMM.NY)Co, while McDonald's Corp reported a second straight month of declines in domestic sales.

Equities also faced pressure from a stronger U.S. dollar and weaker commodities, while more worries about the developing debt situation in Dubai hit overseas stock markets.

3M fell 1.4 percent to $76.82 after the diversified manufacturer gave a 2009 outlook that fell short of Wall Street's consensus and provided investors with a cautious initial glimpse of its 2010 earnings.

Shares of McDonald's slid 2.3 percent to $60.50 after it said sales at its established U.S. restaurants dipped in November, raising worries the fast-food sector is seeing slowing spending.

"The higher the market went up, the more earnings estimates and investor expectations were plugging in a v-shaped recovery," said Alan Lancz, president at investment advisers Alan B. Lancz & Assoc Inc in Toledo, Ohio.

"If you get slower economic growth globally, that's going to follow through here in the U.S., and that's going to affect a wide variety of companies, as you can see with this morning's announcements."

The Dow Jones industrial average fell 95.45 points, or 0.92 percent, to 10,294.66. The Standard & Poor's 500 Index lost 8.96 points, or 0.81 percent, to 1,094.29. The Nasdaq Composite Index gave up 17.24 points, or 0.79 percent, at 2,172.37.

(Editing by Padraic Cassidy)