Dow slips 200 points as CAT falls 7%, Nasdaq negative for 2015 (Slip below 16,000 today?)

CNBC ^ | 24 Sep 15 | Evelyn Cheng

[xzins]

U.S. stocks fell more than 1 percent, pressured by declines in global markets, as investors awaited a post-close speech from Fed Chair Yellen.

U.S. stocks traded more than 1 percent lower Thursday, pressured by declines in global markets, as investors awaited a post-close speech from Fed Chair Janet Yellen.

The Dow Jones industrial average fell more than 200 points in the open. Caterpillar (NYSE: CAT) was the greatest weight on the index, briefly declining more than 7 percent on news the firm will cut up to 5,000 jobs and lowered guidance .

The Nasdaq composite fell more than one percent, joining the other major averages in negative territory for 2015.

All three major averages are now more than 10 percent away from their 52-week highs, back in correction territory.

The Fed Chair speaks on inflation at a 5 p.m., ET, speech at the University of Massachusetts, where the audience will not be able to ask questions.

"It's all about Yellen today," said Peter Cardillo, chief market economist at Rockwell Global Capital. She could "be more hawkish. ... Maybe she might indicate that interest rates are going up this year."

"We're approaching the last week of the month and generally speaking this is a sloppy time," Cardillo said. "With the fear factor at a very high level it can only mean wider gyrations with light volume. From that perspective, it's very difficult to see a market respond to some good news."

Major European stock indices were more than 1.5 percent lower as investors continued to digest the Volkswagen emissions test scandal.

"It's just more of a continuation of the fact that we keep getting more data points that indicate growth is decelerating," said Nick Raich, CEO of The Earnings Scout. "This morning's durable goods certainly doesn't help."

[xzins]

A weak economy that has settled for less performance, lower standard of living, and is probably in a long recession except for numbers manipulation.

[blam]

CATERPILLAR WARNS: Bad News Is 'Converging' And Now We Have To Make Some Major Changes

Myles Udland
September 24, 2015

On Thursday, the industrial giant announced that it will cut up to 10,000 jobs as part of a restructuring plan in the face of what it called, "a convergence of challenging marketplace conditions in key regions and industry sectors — namely in mining and energy."

In early trading on Thursday, shares of the company were down over 7%.

Year-to-date, the stock is down about 25%.

Caterpillar is seen as a bellwether for the global economy because its equipment is big, expensive, and often the kind of investment a company only makes when they feel confident about their prospects and the global economy.

Additionally, Caterpillar has been seen as one of the leading indicators on China's economic slowdown given the decline in the company's sales in that region over the last several years. This news out of Caterpillar follows a warning earlier this week from its UK-based rival, JCB, that it would cut jobs due to a slowdown in Russia, China, and Brazil.

In its announcement on Thursday, the company notes that 2015 will be its third straight year of sales declines. And with sales also expected to decline in 2016 to around $48 billion, the company could be looking at its first four-year stretch of sales drops in its 90-year history.

(snip)

[DonaldC]

We’re becoming Europe.

[soycd]

Obviously we need more illegal immigrants and muzzzy scum to infest the USA.

[DonaldC]

I’ve seen other articles that mention other big layoffs like HP. HP’s problem is more HP than global economy but the CAT moves should be of concern I would think.

[SoFloFreeper]

Obamanomics!

[SoFloFreeper]

Obama claims his plan will boost Caterpillar jobs

[Arm_Bears]

Surprising.

I expected that the memo from the White Hut to Wall Street to start pumping up the markets this morning—so as to calm the rubes—would have gone out yesterday afternoon.

Still early in the day, though.

[mirvin]

Hey, maybe Caterpillar could save a little money by not donating to the Boy Scouts of America......HaHaHaHaHa!!!

[StoneWall Brigade]

Ping

[blam]

Doctor Copper

DEFINITION of 'Doctor Copper'

Market lingo for the base metal that is reputed to have a Ph.D. in economics because of its ability to predict turning points in the global economy. Because of copper's widespread applications in most sectors of the economy - from homes and factories, to electronics and power generation and transmission - demand for copper is often viewed as a reliable leading indicator of economic health. This demand is reflected in the market price of copper. Generally, rising copper prices suggest strong copper demand and hence a growing global economy, while declining copper prices may indicate sluggish demand and an imminent economic slowdown.

[Flick Lives]

Market lingo for the base metal that is reputed to have a Ph.D. in economics because of its ability to predict turning points in the global economy.

I learn something every day on FR. I've often heard the term "Dr. Copper" and I knew they were talking about the price of copper, but I didn't know the tie-in as an economic predictor. I thought is was just supposed to sound cute.

[packrat35]

I am noted in my lifetime several indicators. Here are some

Copper
Baltic Dry Index
Cardboard usage (everything shipped uses cardboard)

[SaveFerris]

And the old Soviet Union

[SaveFerris]

I always thought Dr. Copper was an associate of the Julliard-trained Dr. Van Nostren.

[Gamecock]

Looking for the quotes. Gotta check to quotes. Love a good quote. Oh, IBM up a quarter.

[SaveFerris]

Hoochie-mama!!!

[Flick Lives]

Hadn’t heard about cardboard usage, but it makes sense as a measurement for shipping activity.

[vetvetdoug]

This bodes badly for my area as Caterpillar is the largest employer here with Kimberly Clark second. The economy hasn’t been good for business but if there are many lay offs here it will be devastating. Caterpillar was considering moving out of Peoria to here because of the Unions.