Investing.com | Jan 28, 2019 04:02PM ET
Investing.com - The Dow fell Monday as downbeat earnings from Caterpillar and Nvidia fuelled concerns about a slowdown in global growth.
Caterpillar (NYSE:CAT) tumbled after reporting fourth-quarter earnings that missed forecasts. The heavy equipment maker also guided full-year earnings below consensus estimates. Its share price fell 9% and dragged the Dow Jones Industrials lower by about 70 points.
Chipmaker Nvidia (NASDAQ:NVDA) slashed its guidance for the fiscal 2019 fourth quarter and reported data center revenue that missed estimates. It blamed declining macro conditions, particularly in China, which hurt growth and margins in its gaming and data center businesses. Its share price fell 14%.
"While we view the gaming issues as unsurprising, we think the incremental softness on gross margins suggests a continued pause in Data Center," RBC said. "With this in mind, we think the next 3-to-4 months will remain challenging."
The duo of negative reports comes ahead of the busiest week for corporate earnings, which will include reports from tech heavyweights Amazon.com (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Facebook (NASDAQ:FB).
Falling energy stocks also weighed on the broader market following a slump in oil prices as weak Chinese industrial production data flagged concerns about global growth that could hurt global oil demand growth.
The slowdown in China's economy has been exacerbated by its months-long trade dispute with the United States. But investors are hopeful the two nations can find a way to resolve their bitter trade dispute, with a new round of high-level U.S.-China trade talks set to get underway later in the week.
U.S. Trade Representative Robert Lighthizer, a China trade hawk, will lead the discussions, President Donald Trump's administration said
In other corporate news, Tesla (NASDAQ:TSLA) closed lower, but pared the bulk of its losses despite Saudi Arabia reportedly hedging their stake in the automaker to cut their net exposure to the stock.
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Written By: Investing.com
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