Dow Jones Slumps As Caterpillar, Visa, Verizon Take HIts

The Dow Jones and other major stock indexes were under pressure in afternoon trading Monday, weighed down by a sluggish earnings from Caterpillar (CAT), plus comments from President Trump that another government shutdown is possible.




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The Nasdaq composite fared the worst, down 1.3%, hurt by weak sales guidance from Nvidia (NVDA), which cited “deteriorating macro conditions, particularly in China” for its gaming chips. The Dow Jones fell 1.1% and the S&P 500 lost 1%. Despite fairly intense selling in the broad market, volume wasn’t spiking, with NYSE and Nasdaq volume tracking very close to Friday’s levels.

After soaring more than 4% last week, the Philadelphia Semiconductor index crashed 3.9% early Monday. It rallied off lows, but was still down 2%.

It’s a pivotal weak for the stock market with plenty of high-profile reports due from FAANG stocks like Apple (AAPL), Facebook (FB) and Amazon.com (AMZN).

Dow Jones Movers

Shares of Caterpillar slumped 9% on an earnings miss and weak guidance.

Visa (V) gave back around 2.5% ahead of its earnings report Wednesday after the close. Visa is below its 50-day moving average as it works on a cup-with-handle base. Verizon‘s (VZ) technical picture looks very similar to Visa’s. Results at Verizon are due Tuesday before the open.

Apple (AAPL), meanwhile, gave back 1.7%. At 33% off its high, it’s nowhere near a proper entry. Earnings are due Tuesday after the close.

In other stock market news today, Leaderboard name and China new issue Tencent Music (TME) slumped 7% early but recovered off lows. Shares were down about 1.5%. The stock crashed below an early entry of 14.33 but was back above the buy point in afternoon trading.

Inside the IBD 50, CyberArk Software (CYBR) was a bright spot early, but shares turned slightly lower after hitting an intraday high of 82.80. It’s still a breakout candidate from a consolidation with a conventional entry at 84.31.

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