Trump said he doesn't see a recession after the bond market spooked investors and the Dow suffered its worst day of the year last week.Marketsread more
The U.K. prime minister prepares to meet his German and French counterparts this week.Europe Politicsread more
Amazon is raising seller fees for thousands of small and medium-sized businesses in France because of a new digital tax passed by the French government.Technologyread more
U.S. stock index futures point to a higher open on Monday morning as the White House sought to calm investors over growing concerns about the U.S. economy.US Marketsread more
Ahead of the deadline, U.S. President Donald Trump told reporters that Huawei was a national security threat.Technologyread more
Bianco Research's James Bianco suggests Wall Street is desperately looking for a signal that a 50 basis point cut is coming next month.Trading Nationread more
Baidu is gearing up to release its second-quarter earnings on Monday with the market expecting a sharp decline in profit.Technologyread more
Americans now say they approve of free trade by 64%-27%, a margin of better than two to one. That's up from 57%-37% early in Trump's presidency, and 51%-41% near the end of...Politicsread more
Stocks in Asia rose on Monday as U.S. Treasury yields bounced higher after plunging last week.Asia Marketsread more
The problem with tanking equities lies elsewhere, writes Michael Ivanovitch, because traders see no end to America's unfolding trade disputes with Europe and China.World Economyread more
Beijing wants to use reforms to support a slowing economy.China Marketsread more
Shares of Caterpillar plunged after the company posted disappointing second-quarter results as higher material costs including tariffs and lower demand in China made a dent in its profit.
Caterpillar earned $2.83 per share in the second quarter, versus consensus estimate of $3.12 per share, according to Refinitiv. Revenue also disappointed with $14.432 billion reported compared to the $14.435 billion Wall Street analysts expected, according to Refinitiv.
The heavy machinery manufacturer also lowered full-year earnings guidance to be at the lower end of previous range of $12.06 to $13.06, short of the estimate of $12.24 per share.
Shares of Caterpillar fell 4.48% on Wednesday following the earnings release.
The worse-than-expected results are partially due to the increase in manufacturing costs, which came from "higher material costs, including tariffs, variable labor and burden and warranty expense," the company said.
Caterpillar's sales in Asia-Pacific declined in the second quarter mainly because of the lower demand in China, the company said.
The trade bellwether significantly underperformed the broad market in 2019 as global trade tensions continue to weigh. Its stock is up only about 8% compared to the S&P 500's nearly 20% gain this year.
Caterpillar CEO Jim Umpleby believes demand from China will stabilize as the company takes action to compete against local rivals.
"Based on everything that we see we believe overall the market demand will be stable and we have mentioned the fact that we have some competitive pricing pressures from local competitors," Umpleby said on the earnings call. "We are suddenly taking steps to ensure our competitiveness long-term in China. We're introducing a number of GC products that will help us compete as well but again, we feel good about our forecast there in China."