Caterpillar Inc. sent a gloomy signal on Monday when it posted its biggest quarterly profit shortfall in over a decade, and provided a 2019 forecast that trailed some of Wall Street's estimates.
Nvidia slid 15.4 percent after the chipmaker cut its fourth-quarter revenue estimate by half a billion dollars, hit by weak demand for its gaming chips in China and lower-than-expected data center sales.
Shares tumbled 6 percent before the opening bell, weighing heavily on the Dow Jones industrial average.
Stocks fell Monday after another round of dismal economic data from China, adding to long-standing fears about slowing growth in the second-largest economy and around the world. Their products have little in common, but their earnings on Monday pointed to the same direction: Demand in China is slowing down for a widening range of goods.
As signs of a slowdown in the world's second-largest economy become stark, investors are pinning their hopes for a compromise between Washington and Beijing on trade when officials meet later this week.
Offering some relief to investors, the Federal Reserve is expected to leave interest rates unchanged at its two-day policy meeting starting Tuesday. The S&P 500 is up 13.6 percent from Christmas lows and the monthly performance so far has been the best since March 2016.
Singapore investors are concerned about external events and United States earnings this week, but remained relatively composed as local corporate earnings so far largely met expectations.
The Bloomberg Dollar Spot Index climbed less than 0.1 percent.The euro increased 0.2 percent to $1.1433.The British pound declined 0.3 percent to $1.3158.The Japanese yen gained 0.2 percent to 109.29 per dollar. Other tech companies including Facebook Inc, Microsoft Corp and Amazon.com Inc are also slated to report this week.
The major USA equity indexes took a hit on Monday, driven lower by weaker-than-expected quarterly earnings, guidance and revenue from two bellwether US corporations that highlighted the negative impact the ongoing trade dispute between the United States and China was having on China's slowing economy. The Nasdaq dropped 104 points, or 1.5 per cent, to 7,056. However, anxiety over another closure surfaced as President Donald Trump over the weekend expressed skepticism about lawmakers reaching a deal on border security that was acceptable to him.
"The construction firm's disappointing fourth-quarter results was an bad way to kick off a hugely important period for company updates, and translated to a woeful start for the Dow Jones, which swiftly shed around 350 points". It should also lend urgency to the notion that the global economy is slowing.
USA energy companies last week boosted the number of rigs drilling for oil for the first time since late December.
Bond prices rose. The yield on the 10-year Treasury note dipped to 2.74 percent from 2.75 percent late Friday. This article is strictly for informational purposes only.
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