BUSINESS US stocks open lower as earnings disappoint

BUSINESS

US stocks open lower as earnings disappoint

Xinhua

00:02, January 29, 2019

NEW YORK, Jan. 28 (Xinhua) -- US stocks opened sharply lower on Monday as investors digested weak earnings of some big companies including Caterpillar.

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Specialists work at a post on the floor of the New York Stock Exchange on Dec. 26, 2018. (File photo: AP)

Shortly after the opening bell, the Dow Jones Industrial Average declined 302.93 points, or 1.22 percent, to 24,434.27. The S&P 500 erased 28.09 points, or 1.05 percent, to 2,636.67. The Nasdaq Composite Index decreased 96.63 points, or 1.35 percent, to 7,068.23.

Caterpillar saw its shares fall more than 8 percent after the industrial giant posted weaker-than-expected earnings for the fourth quarter.

The construction machinery company reported quarterly revenue of $14.3 billion, and earnings per share of $1.78.

It also provided a weak earnings outlook for 2019 as the company expects full-year earnings per share to reach a range of $11.75 to $12.75.

Caterpillar is considered a bellwether for global trade given the company's exposure to overseas markets.

Meanwhile, Nvidia shares sank 15 percent in early trading after the chipmaker cut its revenue guidance for the fourth quarter from $2.7 billion to $2.2 billion.

The company attributed weaker guidance to deteriorating macroeconomic conditions.

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