por admin » Mar Oct 23, 2018 6:47 am
Dow is set for 400-point loss after 3M, Caterpillar earnings disappoint
Fred Imbert | John Melloy | Ryan Browne
Published 2 Hours Ago Updated 4 Mins Ago
CNBC.com
U.S. stock futures pointed to a deeply negative open Tuesday morning as corporate results from 3M and Caterpillar disappointed investors.
Shares of 3M fell more than 5 percent in the premarket after its quarterly earnings and revenue missed expectations. The company also trimmed its outlook.
Netflix dropped 2.3 percent in premarket trading, set to add to its 11 percent drop this month. Amazon, Nvidia, Alphabet and Twitter shares were also set to open lower as investors worried about valuations for high-flying technology names with interest rates on the rise.
Bank of America declined 1.4 percent before the bell, set to add to its 7 percent loss for October as investors fretted that rising mortgage rates would crimp loan growth. Higher short-term rates may increase competition for bank deposits as well. Banks led the market lower on Monday.
Dow Jones Industrial Average futures indicated a decline of more than 260 points at the open while S&P 500 and Nasdaq 100 futures also fell sharply. After its fourth straight daily decline on Monday, the S&P 500 sits less than 2 percent away from the low hit earlier this month during this ongoing sell-off.
Tuesday is a big day for corporate earnings, with McDonald's, 3M, Caterpillar and a number of other firms set to report before the bell, and Juniper Networks, Equity Residential, Capital One and others due to post their financials after the trading session. This is the busiest week of the earnings season, with more than 150 members of the S&P 500 set to report.
"US corporate earnings season has started with more of a whimper than a bang," said Nick Colas, co-founder of DataTrek Research, in a note. "Yes, companies are beating expectations, but by less than usual."
"This week has the chance to turn things around with 32% of the S&P 500 reporting. Still, it is now clear that we are past peak earnings momentum," Colas added.
Global markets were also on edge amid geopolitical tensions surrounding Saudi Arabia.
Investor focus is largely attuned to developments in Saudi Arabia, after the country confirmed Jamal Khashoggi, a journalist and critic of the Saudi regime, was killed in the country's consulate in Istanbul, Turkey.
European and Asian shares retreated on Tuesday as sentiment soured amid the escalating geopolitical worries. Europe's Stoxx 600 fell to its lowest level since December 2016 in early morning trade, with concerns over Italy's fiscal plans and Brexit also depressing sentiment, while Asian markets saw broad losses.
Meanwhile, Minneapolis Federal Reserve President Neel Kashkari, Atlanta Fed President Raphael Bostic, Chicago Fed President Charles Evans and Kansas City Fed President Esther George will speak throughout the day. In terms of data, the Richmond Fed is expected to release manufacturing index data at 10 a.m. ET