Caterpillar Steamrolls Dow Jones Industrial Average

Caterpillar stock falls 5% pre-market on earnings disappointment, sinking Dow Jones Industrial Average into red

Dow Jones Industrial Average (DIA) futures pointed to a sharply lower open in Wednesday as Caterpillar (CAT) posted a huge earnings miss and concerns over financial tightening in Asia spooked global markets.

Cat (CAT) missed its quarterly earnings expectations and delivered a less than robust view of the future.

Boeing (BA) reported positive numbers for its commercial aircraft unit.

In China, inflation seems to be taking hold again with soaring housing prices and so money market rates are rising and inserting concerns about growth in China and the emerging world.

In Asia overnight, markets were weak with the Nikkei (EWJ) dropping 1.95% and the Hang Seng (EWH) falling 1.36%.

Overall, just one third of SP500 (SPY) companies have beaten revenue forecasts, well below the nearly 50% average and so stocks are going to have to scale new records on the backs of weak earnings which could prove difficult to do.

Netflix (NFLX) continues making news as Carl Ichan continues dumping his holdings and the company’s stock goes through wild gyrations.

In early morning trade, the Dow Jones Industrial Average (DIA) is down 0.28%, the SP500 (SPY) falls 0.32% and the Nasdaq Composite (QQQ) is off o.47%.

Treasuries (IEF) are rallying and gold (GLD) is down.

Bottom line: Earnings are putting a damper on the Dow Jones Industrial Average (DIA) and other major indexes as they try for new record highs.

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