General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDow drops 350 points after poor outlooks from Caterpillar, Nvidia
Stocks fell sharply on Monday as investors fretted over weak earnings from Caterpillar and a big cut in revenue guidance from chipmaker Nvidia.
The Dow Jones Industrial Average fell 350 points as Caterpillar lagged. The S&P 500 dropped 1.2 percent, led lower by the tech and industrial sectors. The Nasdaq Composite declined 1.6 percent.
Caterpillar shares fell 9 percent after the industrial giant posted weaker-than-expected earnings for the fourth quarter. The company said its sales in the Asia/Pacific region declined because of lower demand in China. Caterpillar is considered a bellwether for global trade given the companys exposure to overseas markets. The company also issued disappointing guidance.
Nvidia, meanwhile, dropped 17.5 percent after slashing its fourth-quarter revenue guidance to $2.2 billion from $2.7 billion. The chipmaker said deteriorating macroeconomic conditions, particularly in China, impacted demand for its graphics processing units.
Read more: https://www.cnbc.com/2019/01/28/stock-market-trump-expresses-skepticism-over-border-wall-deal.html
Achilleaze
(15,543 posts)You can't trust the TopDog republican to tell the truth, and he's remarkably unsteady. No wonder Wall Street is voting NO CONFIDENCE.
* aka KGOP republican Draft-Dodger-in-Chief
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Johnny2X2X
(19,066 posts)DOW is supposed to be below 20k right now if you go by the historical PE Ratio. Too many companies are way to pricy for what their earnings are.
Yavin4
(35,442 posts)For more than 10 years after the financial crisis.
Johnny2X2X
(19,066 posts)But more than that, the valuation of too many of these companies is purely speculative. You have companies out there that cost $300 or more to buy $1 of earnings. I want to see the PE ratio move back towards the historical average.
Yavin4
(35,442 posts)People cannot make money on their savings. So it has to go some where.
Johnny2X2X
(19,066 posts)We're seeing this change now though. That is all natural though, the problem that I see is over value of under performing companies.