Wall Street Opens Lower on Saudi Concerns and Caterpillar Underperformance

Wall Street was set to open sharply lower on Tuesday as disappointing earnings from industrial bellwethers Caterpillar and 3M piled on to concerns over Saudi Arabia’s diplomatic isolation, Italy’s finances and trade war fears.

Shares of Caterpillar (CAT.N) sank 7.7 percent in premarket trading after the heavy-duty equipment maker just scraped past quarterly profit estimates as tariffs drove up material costs and the company opted not to raise 2018 earnings forecast.

3M Company (MMM.N) fell 6.8 percent after its third-quarter sales missed estimates and the company cut its full-year profit forecast due to currency headwinds.

via Reuters

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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