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Stock Market Today: Dow Falls on Caterpillar Slump, Rising Geopolitical Tensions

Stock Markets Aug 02, 2022 04:17PM ET
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© Reuters

By Yasin Ebrahim

Investing.com -- The Dow fell Tuesday, weighed down by rising geopolitical tensions and a slip in Caterpillar on weaker-than-expected revenue.

The Dow Jones Industrial Average fell 1.2%, or 402 points, the Nasdaq was down 0.16%, and the S&P 500 fell 0.66%.

Geopolitical tensions ratcheted up a notch intraday after Chinese battery giant CATL reportedly said it would pause plans to invest billions of dollars in a new U.S. battery plant because of House Speaker Nancy Pelosi’s trip to Taiwan.

The House Speaker arrived in Taiwan despite Beijing warning of retaliation over the visit.

As well as geopolitical tensions, a surge in Treasury yields also soured investor sentiment following remarks from Fed members playing down the prospect of the Fed pausing or cutting rates next year.

Cleveland Fed President Loretta J. Mester said it would “take a while to get inflation back to that 2 percent,” and shrugged off worries about the slowing economy, stressing that a slowdown is “necessary.”

The comments arrived just hours after San Francisco Fed President Mary Daly said the Fed’s job to bring inflation down was “far from done.”

Tech swung between positive and negative, pressured by rising U.S. Treasury yields as investors mull the falling prospect of a less hawkish Fed.

Losses in consumer stocks were kept in check by a climb in Tesla and a jump in cruise stocks.

Tesla (NASDAQ:TSLA) cut losses to close around 1% higher - adding to its more than 30% gain seen in July - ahead of the electric automaker’s shareholder meeting on Thursday. The meeting, which will include a vote on the company’s 3-for-1 stock split proposal, will also be closely watched for any updates on Cybertruck, Tesla’s all-electric pickup truck.

Healthcare stocks were helped by a rally in Intuitive Surgical (NASDAQ:ISRG), DexCom (NASDAQ:DXCM) and Zimmer Biomet Holdings (NYSE:ZBH), with the latter up more than 3% after the medical device company raised its outlook on revenue following better-than-expected quarterly results.

Energy stocks, meanwhile, ended slightly lower as oil prices struggled to sustain momentum amid uncertainty about whether major oil producers will decide to lift production at a meeting on Wednesday.

Commerzbank said that while the outcome of the OPEC+ meeting is “impossible to predict...there is more to suggest that the current production volume will be left unchanged, which should help prices to stabilize.”

Caterpillar (NYSE:CAT), meanwhile, reported a miss on revenue as the impact of its exit from Russia, higher costs and a stronger dollar weighed on performance. Its shares fell more than 5%.

Uber Technologies (NYSE:UBER), meanwhile, reported its maiden positive cash flow and a revenue that topped expectations offsetting a wider than expected loss to send the share price up more than 18%.

Pinterest (NYSE:PINS) jumped more than 11% despite quarterly results falling short of Wall Street estimates as activist investor Elliott Management confirmed that it had become the company’s largest shareholder as it looks to forward to helping the company realize its “full potential."

In other news, Cowen Group (NASDAQ:COWN) climbed 8% after the financial services firm reportedly agreed to be acquired by TD Bank for $1.3 billion.

Stock Market Today: Dow Falls on Caterpillar Slump, Rising Geopolitical Tensions
 

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Comments (16)
Dennis Chuck
Dennis Chuck Aug 03, 2022 6:01AM ET
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An evil woman. She only care about her tesla options and botox.
Ken Roth
Ken Roth Aug 03, 2022 6:01AM ET
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Piss off russian join your putin army and go loose your life in ukraine
Jamie An
Jamie An Aug 02, 2022 10:00PM ET
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Pelosi did a great job. US make it clear who is rule the world. Not China.
Megat Anwar
Megat Anwar Aug 02, 2022 10:00PM ET
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your name is like chinese ccp
Jamie An
Jamie An Aug 02, 2022 10:00PM ET
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Your name looks like chinese slave
Dennis Chuck
Dennis Chuck Aug 02, 2022 10:00PM ET
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@ jamie an you are sure a obedient and western lackey.
Dave Jones
Dave Jones Aug 02, 2022 8:47PM ET
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she woke the f king dragon....
Chad Richer Than You
Chad Richer Than You Aug 02, 2022 7:13PM ET
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The Chinese can just shoot Pelosi
Hai Caaa
Hai Caaa Aug 02, 2022 7:02PM ET
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haha succes
Mitchel Pioneer
Mitchel Pioneer Aug 02, 2022 6:48PM ET
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Another mitigated loss in the laughingstock of the financial world.  Keep it criminally propped, keep unloading on 401K plans investing on behalf of retirement plans, and keep averaging up holdings of the US working class.  What a Ponzi Scheme.  Guaranteed buyers every 2 weeks for the criminals on Wall Street to unload their fraudulently inflated equities.  Charles Ponzi would cry tears of joy if he could see the ultimate incarnation of his work in action.
Ac Tektrader
Ac Tektrader Aug 02, 2022 6:34PM ET
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Chinese hissy-fits don't work against the Americans, thank you China for making bipartisan work again in Washington DC.
Ac Tektrader
Ac Tektrader Aug 02, 2022 6:24PM ET
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the Chinese are in economic and societal trouble ... their economy is in danger of a serious breakdown. I doubt very much the American dollar is in trouble. the currency union the're trying to create with some of the weakest national economies in the world, is a non starter. they would be creating more political and economic failures if they take any economic actions against the west.... the Chinese leadership acts and sounds more like a teen- age girl whose father has just taken her cell phone away from her...
Raymond Chiew
Raymond Chiew Aug 02, 2022 6:24PM ET
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Time to wake up! Fiat money will face its dooms day by printing more and more in horrendous  manner.
Jamie An
Jamie An Aug 02, 2022 6:02PM ET
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We are very proud of her brave visiting Taiwan. Pelosi good job!
Flat Top
Flat Top Aug 02, 2022 5:41PM ET
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This article is just trying to create something out of nothing. There are no tensions. China was barking a lot before the mighty Nancy Pelosi went to Taiwan. All the noise an threatning. What did they do? Nothing. Thank you Nancy for standing up to the communist China
Jhon Dick
Jhon Dick Aug 02, 2022 5:41PM ET
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hahah wait my friend, they gona do something. they can begin to ask for yuanes for payment like russia with rubles and shot down the dollar. 2. they can stop the exportation of rare minerals which shot up the electronic device price and shambles the inflaction
Ac Tektrader
Ac Tektrader Aug 02, 2022 5:41PM ET
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Jhon Dick the Chinese are in economic trouble ... their economy is in danger of collapse I doubt very much the American dollar is in trouble. the currency union there trying to create with some of the weakest national economies in the world is a non started. they would be creating more failures if they take any economic actions against the west.... the Chinese leadership acts and sounds more like a teen age girl whose father as just taken her cell phone away...
 
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