US Markets | Futures Indications Update: Stock futures drop after Caterpillar falls on weak earnings
Fred Imbert, Sam Meredith
Dow Jones Industrial Average traded down 54 points, indicating a loss of about 34 points at the open. Futures on the S&P 500 and Nasdaq 100 also declined.
Caterpillar shares fell 1.9% after the company said it earned $2.66 per share in the third quarter, versus the Refinitiv consensus estimate of $2.88 per share. Revenue came in at $12.758 billion, while Wall Street expected revenue of $13.572 billion. The heavy machinery manufacturer lowered its full-year earnings per share forecast to a range of $10.59 and $11.09, lower than the expected $11.70.
Weak results from Texas Instruments also weighed on futures. Texas instruments — which is often seen as a proxy for the microchip industry — plunged more than 9% in the premarket after posting fourth-quarter guidance well below market estimates.
Those losses were offset slightly by a gain in Boeing shares. The aerospace giant rose 1% in volatile trading despite posting quarterly earnings that missed estimates by a wide margin. The company reported a profit of $1.45 per share. Analysts polled by Refinitiv expected a profit of $2.09.
Ford, Microsoft, and Tesla are among those scheduled to report their latest quarterly figures after market close.
Despite the weak results from Caterpillar and Texas Instruments, the third-quarter earnings season has largely topped analyst expectations. Of the 110 S&P 500 companies that have reported, 81% have posted better-than-expected results, according to FactSet.
On the data front, the Federal Housing Finance Agency will release its house price index for August at 9 a.m.