US Stocks Lower as Global Economy Concerns Remain

US stocks opened lower as worries about the state of the global economy continued to rattle investors.

Shortly after trading began the Dow Jones was down 173.24 points, or 1.1%, at 16,106.85.
The S&P 500 index fell 16.71 points to 1,922.05, while the Nasdaq was 31.97 points lower at 4,720.78.

Shares in Caterpillar fell 7% after the construction and mining equipment maker warned of falling revenues and announced thousands of job cuts.

The company cut its forecast for revenues this year by $1bn to $48bn, adding that sales in 2016 would be about 5% lower.

Caterpillar – which has been hit by the downturn in the mining and energy sectors -also said it would cut up to 5,000 jobs by the end of 2016, and could shed 10,000 posts by 2018.

Later on Thursday, investors will be keeping a close eye on a speech being given by Federal Reserve chair Janet Yellen on inflation.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza