Caterpillar reports in the pre-market
Nothing says market confidence like a fresh 52-week low hour before a company is set to report on earnings. And when the company is extremely sensitive to global growth, the broader market will certainly be paying attention.
Here are shares of Caterpillar, the global industrial equipment giant. Note how they fell below the August low on Monday and that there’s a dramatic lack of support below.
What’s especially worrisome is that the CEO of Caterpillar is apt to speak his mind on the global economy. In late April, he said earnings were at a “high water mark”. He later tried to walk it back but the comment has haunted the shares and is frequently brought up by stock market bears.
With little on the economic calendar in the day ahead, expect Caterpillar’s results and commentary to loom large. If the chart is any indication, it could get ugly.
Maybe that’s what the S&P 500 is signaling with futures down 22 points.