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Global Growth Slowing And It Hurts

Stocks are weaker here today, and while I have enumerated many reasons (see my previous post), the main concern is that global growth appears to be slowing.

Here, you want to look at capital goods companies. In the last two days, two midcap companies have lowered their guidance:

1) Today Oshkosh, which makes heavy-duty vehicles for many commercial industries, talked about weak business here and overseas, with specific reference to softer conditions in western Europe, so companies that make any kind of heavy equipment are weak, including Terex, Caterpillar, Federal Signal, or heavy duty truck companies like Navistar and Paccar.

2) Yesterday Rockwell Automation, makes factory automation systems, yesterday warned that business was slowing in the U.S. and Europe and lowered its fiscal year guidance, which ends in September.

This may not seem like a lot, but on the heels of warnings by UPS and other companies about suddenly slowing business in June traders are clearly nervous that more companies will be revising their earnings outlook downward.

And they are increasingly nervous about slower growth in Europe, as well as slower emerging market growth.

The comments from Oshkosh are particularly important, since they sell to many different industries, including the non-residential construction industry. Today stocks that have significant exposure to this area are also weak, including Tyco, United Technologies, Emerson, and H&E Equipment Services.


Questions? Comments? tradertalk@cnbc.com

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    A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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