caterpillars down 5.8%. when you put together the three industrials of caterpillar, 3m and boeing, they were weighing on the dow by almost 300 points. over at cs ra, the analyst thanks it's more attractive to put a buy rate on 3m. with this pullback almost $15, now he's buy it, buy it now. that's what they're saying over at the fra. with look at general electric. it's a three quarters of 1%. it actually has an up arrow. over the past year down over 50%. closing bell rings and 28 minutes. lockheed martin are stalling big. after it failed to raise its 2018 cash flow projections, the number one weapons of fire from pentagon, the first quarter estimates raised its full-year guidance but it's in a dispute with the pentagon of the cost of its jets. jan says defense department is tightening up. the f35 are certainly too expensive so the not taking delivery from lockheed martin of five to ten planes. they remain undelivered. we will be back with much more will we come back. countdown to the closing bell, we are watc

look what happened to caterpill caterpillar. tooling along, up nicely, 4%, 161, and then all the sudden, down to 143, sitting at the lows for the day, 12% move intra-day. that's what that discussion does for you. on top of that, other companies are out with good numbers and decent guidance, but they are not doing anything today lockheed martin, for example, down 6%, decent numbers, dragging down boeing on top of that, and then heaven help you if you give guidance that is unexpected or disappointing. 3m lowered a little bit, lowers high end of the guidance that's not a typo, down 7% that, alone, is 100 points in the dow jones industrial average. then there's the rates issue i want to change that discussion a little bit, make it an inflation issue. company after company, this morning and the last few days, has mentioned higher input costs, so 3m, for example, talked about higher cost for transportation, kimberly-clark talked about margins impacted by commodity inflation. procter & gamble said higher commodity costs affects them ca

what's the deal with all those caterpillars? as we reported even last week you may have seen them at your parks and in your own back yard. i have hundreds of them in my back yard by the way. >> they're native to the bay area. this year there's been a population explosion, and the furry insects, though, do come with a risk. marianne favro is live in los gatos to explain. what's the risk? >> reporter: this play ground is absolutely covered with the caterpillars. you can see one right here. the problem is because they're cute and furry, kid the love to pick them up. but these caterpillars can give you a rash. 4-year-old jack briden was planning to play on this playground until he spotted a caterpillar here and here. and here. >> i would say a million, cause there are like a bunch of caterpillars, tons and tons. >> reporter: experts say they've seen an explosion of western mock caterpillars, thanks to the weather and a decrease in predators. hundreds have been spotted in the south bay, and while they can destroy a lot of leaves, tha

i think caterpillar is a great example on many fronts, scott. on one front, to just begin withing, this is another company that had a blow-out earnings number and was slaughtered just like twitter today, just like goldman sachs last week what it's really telling me is, look, any way you cut the numbers. they were good numbers they raised the guidance for the full year more than the beat yesterday. i don't want to go on and on about cap -- >> if we get into a sell on the news type of a market -- >> we are. >> where earnings are good and people are selling stocks down, that's not a good environment for the bulls. >> well, you're right, it's not good in the short term, because what it means is people are taking profits, and they're clearly not putting that money back to work into the markets. they're scared what are they scared of? all the things we know, tariffs, perhaps an economic slowdown, but frankly, the economic data, and this is a little bit of what kevin was saying, is not showing any signs of a near-term recession. it's a matter of invest

let's focus on caterpillar because it's a clear-cut example. i am a huge fan of cat, the company. these guys spent years cutting costs and improving business so they could make a fortune once the economy picked up once again. those picked off big time. cat's stock caught fire. it's more than tripled from its lows of $56 in january of 2016 to its peak of $173 in january of this year when things were going so great cat's business is booming but caterpillar gets a ton of business from china. when president trump kicked this off with the chinese the stock got slammed. doesn't help started with a tariff on steel. the stock pulled back to 143 on monday thanks to real strength tuesday it rebounded 150 bucks 23 points off its january highs. makes sense even though caterpillar is doing well here it would be an obviously target for retaliation and you don't want to have to deal with that if you're owning the stock so what do you do? well, i got a solution i'm going to say you should swap out of cat and swap into united rentals. you or hi, the big domestic rental play. unitedrentals gives yo

i'm not long on caterpillar. if you were long going in to today, i don't see what he said that should made people freak out. >> what he's told you is it doesn't get any better than this. steve and i at times have had a healthy debate on this. >> i don't think that's what he said. >> when stuff is in the price, it's in the price and coming into this earnings season people new caterpillar was going to have record quarters, they knew they'd have a huge tax benefit and the global economy was synchronized. i just think -- >> 3m and caterpillar, was two names, though that really shaved expectations. >> this is why i love doing this show. we're all professional traders and i see both sides of this. the pushback is, do you feel like if there's the -- if it is a synchronized global economy, do you feel like global growth is still intact? that would be the number one question and you would say yes. >> i do. my biggest issue right now is equities have a much higher cost of equity in them. they're just not worth as much -- >

what is the deal with all the caterpillars? as we told you earlier this week, they're at parks and maybe in your own backyard. turns out the little furry guys are native to the bay area, and there's been a population explosion. the insects, though, come with a risk. nbc bay area has more. >> reporter: 4-year-old jack was planning to climb on this playground in los gatos until he spotted a caterpillar here and here and here. >> i would say a million because there were like a bunch of caterpillars. tons and tons. >> reporter: experts say they've seen an explosion of western caterpillars thank to the weather, food supply and a decrease in predators. hundreds have been spotted in the south bay. while they can destroy a lot of leaves, that's not the big concern. >> people sometimes want to touch them or pet them because they're furry. but the hairs actually have little barbs in them. so if you have a tender hand, the barbs will go right in there and cause a little rash on your hand. >> reporter: this photo shows what that rash looks

ropped caterpillar and the entire market in the middlth of morning. second, rates are creeping higher. the yield of the ten year hit since the first time in 10 related to higher rates is concerns over inflation. several companies including caterpillar talked about rising commodity costs like steel and oil and several talked about higher wage costs. third, there's been some major resistance from momentum names, the big tech stocks and the fang names in particular. facebook, apple, amazon, netflix arand google,t of alphabet. all about 10% or more fromnthe highs. they've been down four days in a w for the most part. finally, consumer staples are hitting new lo a lot of issues for the market for "nightly business report," i'm bob pisani at the new york stock exchange. >>> let's dig a little bit deeper into thedu rials. three major companies in that sector reported earnings, uniteo teches topped expectations and the company raised its outlook. 3m's earnings were in line, the outlook not so great. caterpillar really set the tone. when its stock fell more th

caterpillar came under pressure.ome with names on earnings newsom which beat the street but they gave outlooks that were weak. that would be caterpillar for example. which you can see, which is weighing on dow jones industrial average. some would tick off 100 points just by themselves. you had 3m cutting its outlook. verizon being only one that was trying to hold on to the green. the 10-year treasury bond, which you noted is so key at 3%, there is inflationary tone. people are talking about oil at highest levels, multiyear highs. you have rising government debt. you look at crb index, a basket of 19 commodities, that too at a four 1/2-year high. that is part of it. google, how about a quick peek at google? cost concerns, despite the beat on the top and bottom line, when you break down earnings there are cost concerns. that is down 5.25. traders seem somewhat unfazed. they note a trading range we're in. one guy said that we could be down 800 points. not extremely heavy volume. vix is up 17%. trish. trish: president tr

caterpillar seems to be the trigger. encapsulate the concern that the first quarter was as good as it is going to get? >> absolutely. andou look for it into 2018 2019, the earnings growth was not going to be there, at least not to the pace we have become accustomed to. caterpillar decided we are going to put it all out there. the earningswhen call started around 11:30 and you look at where the market was, it was about flat. it has been down the staircase ever since. abouty talked infrastructure investment in china, the united states, and you mentioned, but there were other things going on as well. the 10-year yield which we had been watching. all me briefly touching 3%, but that stimulated some calls as well so you can take your pick as to what is driving this market. >> the 10-year yield is factoring and, but the markets seem to digest that fairly well. you do not see as you just selloff huge panic, but you are talking about all of these events. tightenings, financial conditions, relative to where they were at the begin

robert, what do you think of caterpillar and what it said >> yeah, that was caterpillar on the call todayct that they would see in the near term probably peak margins, at least for this quarter for the rest of the year and i think that raised the specter of, you know, a stagflation or peaking environment. you're seeing the prospects of perhaps slower growth than people were expecting, rising raw material costs and perhaps an environment where you could see a peak in underlying operating margins. i'm not saying that's ultimately how it's going to play out but i think that's what's in investors' minds obviously what's not helping as well is the pullback in oil today so from that standpoint, i think it creates a situation where you could see the credit gets along with the yield curve basically more of a risk of a stagflation or mid cycle pause environment which, you know, can cause investors to be concerned. >> so, unpack it a little bit here as i look at one of the slides we just had there, it looks like caterpillar beat on revenues by almost $1 billion. they're their eps was higher and it

got a bunch of caterpillars everywhere. thousands of them. >> my goodness. they are crawling all over him. wildlife officials say it's due to the milder climate change. they are mostly gone after some treatments to keep them at bay. >> we have hundreds at my house. >> we do, too. apparently, i've been told by experts that many of them are irritating. if they get on your skin, for kids, it's very damaging. be careful if you are tracking them into your car or home. >> good information. >> they are all over. >> coming out of the oak trees. >>> avoid the caterpillars this weekend and lots of sunshine coming our way as we hit saturday and sunday. we get a look. we will start down in los angeles. look at our camera showing blue skies. a little haze back off toward the distance. for l.a. standards, this is a beautiful afternoon. why are we starting there? the giants taking on the angels. that's right here on nbc bay area at 7:00. we have your vip pass. keep it locked to our channel. 66 right now. once we hit 9:00 tonight, down to 59. under clear skies. let's bring

the shade. >> and, got a whole bunch of -- caterpillars everywhere. thousand of them. >> wildlife officials say the increase is due off to the milder climate change. the city says caterpillars are disappearing quickly because of treatments to keep them at bay. but, when they blossom. >> they blossom. i have hundreds in my yard. jeff, you have some. be careful. they've can irritate your skin if they got under your skin as well. >> so interesting. i didn't know that. >> i'm the caterpillar whisperer. >> oh, man. nice weather to get outside. dodging caterpillars in the morning. the other thing tracking. pollen. trees biggest offender here in the oak category. in the high levels. talk more about the warm weather who reaches 894 in a few minutes. >> we sent questions to some debt collectors. and they actually answered them. i am consumer investigator. chris camura. plus what we are doing to erase medical debt. nbc bay area responds. next. you could save energy by living off the grid. completely. or... just set the washing machine to cold. do your thing. wi

caterpillar was not alone in selling off.ology, with the biggest drags on the s&p 500, amazon, microsoft, google and facebook. industrials were the worst. consumer tech and discretionary had pretty steep selling. "what'd you miss?" a bigger, better deal. emmanuel macron came to washington with the not so secret goal of selling president trump on the iran deal. trump on the iran deal. he proposed renegotiating "something new" that would address concerns and caution the president against tearing of the deal, which president called insane. no one knows what president trump will decide may 12. we are joined by washington chief correspondent kevin cirilli from the white house. instead of another very colorful hand-check, what did macron achieve? >> president trump said perhaps macron is the only person in the world who might have some idea what president trump will decide may 12. let's dive deep into the details, specifically with regards to the financial backing. if do look at the iranian exports between 2015 and 2016, since this

it is likely the caterpillars will be around until mid- spring.l get a lot of mops instead. >>> the annual gray whale migration is underway. we are getting a look at some of the biggest in the ocean taking full advantage. princess monterey whale watching capturing video here of killer whales attacking and feeding on a gray whale calf along the monterey coast. a marine biologist said a part of several workers separated the calf from its mother who was unable to protect it. a video was taken wednesday. the whale watching company says there was another killer whale attack on a gray will calf a couple of days ago. >>> it is 8:51 a.m. help for those battling deadly diseases. >> how to find out if you can be a bone marrow donor and possibly save someone's life. >>> and shock in the music world after a popular dj and producer is dead at the age of 28. next, we will talk more about the mysterious circumstances surrounding the death of avicii. (car door closes) (sound of engine starting) ♪ ♪ (sound of footsteps) (sound of car door opening) (car door closes

ever. >> reporter: the caterpillar is no stranger to these parks. experts in mountain view say this is the largest infestation they have seen in nearly 20 years. a warm february meant an early hatch before the city's first application of insecticide could take effect. >> oh, i think they're gross! they are all over the garbage cans, trees, and you walk and they fall on your hair. >> reporter: they like trees especially oak. several parks in mountain view have been especially hard hit. >> normally there are kids around at this time. now just the soccer guys which they're not affected by it because it's in the open area. but when the kids come over here, they run right into 'em. >> reporter: when the caterpillars take over the slides and swings, the kids steer clear. >> wah! >> it's weird. i feel like it's, like, interrupted my playground time. >> makes me worried. >> reporter: mountain view is taking steps to address the problem now hosing down the trees and also spraying some parks with an insecticide from a chrysanthemum flower. while experts say t

caterpillars? as we )ve rer >>> have you seen a lot of little furry caterpillars roaming around. we've been telling you about it here. you may have seen them at parks and in your own backyard. >> they are native to the bay area and this year there has been a population explosion. the furry insects come with a risk, though. >> reporter: 4-year-old jack was planning to climb on this playground at this park in los gatos. until he spotted a caterpillar here and here and here. >> well i would say a million. because there was like a bunch of caterpillars. tons and tons. >> reporter: experts have seen an explosion of western caterpillars thanks to the weather, food supply and a decrease in predators. hundreds have been spotted in the south bay. and while they can destroy a lot of leaves, that is not the big concern. >> people sometimes want to touch them or pet them because they are furry but the hairs have little barbs in them. so if you have a tender hand, they will go right in and cause a little rash on your hand. >> reporter: this photo shows what that rash looks like. bay area pedi

alix: we heard from caterpillar.nings coming out very solid, but the question is about the call. is blowing past estimates, shaking off any trade .ar issues, beating estimates general dynamics also seeing some good news, saying they are very confident in their outlook. their backlog hitting over $62 billion. operating margins this month, and their earnings from continuing operations bode the last seconds. oil earnings, big kickoff. they had a loss, but much less than the three expected of about $.49 per share. the question, can these big oil companies make as much money as they did in 2014 when oil was at 00, and do they stay disciplined? david: this is pretty exciting, i've got to give it to you. does -- it is as good as it gets. next, our wall street beat. you can turn on the radio and listen to our colleagues tom keene and jon ferro. "bloomberg surveillance" can be heard in new york, boston, that the area, washington, d.c. -- the bay area, washington, bc, and-- washington, d.c., around the country on sirius xm. ♪

>> i have never seen so many caterpillars.> what's behind the infestation that's chasing people away? >> the weekend is here for all intents and purposes. we'll get started on saturday and sunday. >> and coming up tonight at 7:00 on ktvu plus, more on the "420" event and how legal sellers of marijuana are competing with the black market. >> why the top three school officials are facing criminal charges due to a fight club in the school. to move california forward, we need to help more californians get ahead. that's why antonio villaraigosa brought both parties together to balance the state budget with record investments in public schools... and new career training programs. as mayor of la, he brought police and residents together to get illegal guns off the streets - and keep kids out of gangs, and on the right path. that's antonio villaraigosa. a governor for all of california. play [music plays]his". [dog barks] [concert roaring] [music stops] dinner in 5. when everything's connected. it's simple. easy. awesome. >>> parts of

this is a huge market for caterpillar and other types of machines like that.t quite complicated and the chinese have not yet moved against major us exports into china, like aircraft, soya beans, cars, caterpillar tractors, et cetera, so there's lots of room for this to escalate further and get very complicated. does president trump have a point when he says the us as the biggest trade deficit in the history of the world with this country, china, and obviously china doesn't allow foreign investment into their country, so, you know, could there be a bit of needling here, to the chinese potentially give in on some of these demands?” think if it was clear what the us wa nted think if it was clear what the us wanted i think it would be easier for the chinese to respond, but i think the united states has shifted the goalposts here. if you read the 301ks, the us has four complaints about what the chinese are doing, forcing the... not protecting intellectual property rights, not using market methods to screen investments and spying on us cyber in the us. add onto that

if we go into the big movers, caterpillar is at the top.s fascinating is shares were rising on it's very strong guidance. forecast, but2018 it was the conference call where they gave a it is as good as it gets message that they reached the high water mark for profits for the year. and it stock fell more than 6%. in google is another story where the earnings on monday were positively received, but investors focused on the increase in capital expenditures. the stock fell. and 3m is another story about concerns of the industrial and manufacturing center. wall street census warning signs and the weaker forecast undiminished outlook adding to the pressure as you can see the stock plunge. texas instruments gave a rosy forecast and that sent shares moving higher. they make chips that helps most electronic devices, and forecast beat most estimates, diffusing concerns. that sets up for a tech positive going into the wednesday session. peoplend still plenty of in the metals market. aluminum with the biggest drop in decades. su: what is fascinating in

caterpillar was up.ompany's cfo says the adjusted profit first year will be the high water mark for the year. in cfo school they say never say that. and saying material cost increase to be greater than price realization. she also said the adjusted modeling sees a stronger china economy. meanwhile, i think there is after fi --there is some profit. the bully pulpit was used to push back on the white house and look at the stock. we saw everything. it's a classic example how quickly panic selling can beat down any stock. i think it's a long-term buy hold. caterpillar will post financials the rest of this year much better than anticipated. what about as the world turns, geopolitical tensions. revamped trading deals and the moment of truth. president trump's tough language also added to the sell-off. if the united states were to pull out of that nuclear deal. i think there will be deals. i think our nafta partners, even china. iran will remain a dark cloud for the market. let's talk about pressure bursts pipes

dozens of western moth caterpillars crawling all over this playground. >> i would say a million becauses like a bunch of caterpillars. >> reporter: biologyist say they are experiencing a population explosion in the bay area this year thanks in part to the weather, food supply and decreases this diseases and predators that kill the critters. often considered the teddy bears of the insect world, experts say don't let it fool you p those hairs are barbs that can give you a rash. >> a little child, the little barbs will go right into their skin and it will cause a rash. >> reporter: they can also cause welts. while they have recently treated patients with rashes, they can't confirm they were linked to caterpillars. >> they're really beautiful. >> reporter: she said she didn't know about the risk. >> i definitely would have picked one up had you hot been here. >> reporter: jack is happy to learn come may most of the caterpillars will transform into moths and fly away and he can once again enjoy this playground. the cdc this most cases the rash will only last a couple of days. >> thank you. w

the caterpillars do not pose a health risk. the hair on the bodies can irritate skin and cause a rash. >> they do not harm you. >> reporter: for those looking to play or picnic they can be a nuisance or reason to go elsewhere. >> they are pretty big. hopefully they will get rid of them soon. >> reporter: experts say they should hang out in their current form until about mid spring and then we should expect a bumper cross -- crop of moss -- moths. >>> i am waiting for the introduction. it is a thing a half. >> what is the weekend looking like? >> the weekend will be great. it is friday night. temperatures are warming up. they weren't up-to-date. temperatures tomorrow will be warmer still. we will see numbers tomorrow in the low 80s. today was 79 and tomorrow will be 83. 79 in concord. probably 82 or 83. a warmer day for the bay area. sunday will be a little bit warmer. the only difference is we have coastal fog in this area. it is chilly. that is how it will be all weekend. the fog will go back and forth at the coast. not a big

they're crawling just about ever >>> caterpillars seem to be taking over the peninsula.awling just about everywhere in mountain view. you can see them dangling down tree branches taking over park benches and covering this lamp post. people in the area say while they're fun to look at, they're outdoor activities. >> yeah. they don't bother me. he was kind of interested in it at first and then seems like he's scared of them. he doesn't want to play on the playground because there's too many caterpillars covering the playground. >> park officials say it appears to be a western tussock moth caterpillar which are commonly found in april. while the infestation is worse than prior years, the caterpillars are not dangerous. >>> a thief probably didn't know what he or she had when taking off with a trailer in sacramento county. surveillance video shows a truck drive into the future farmers of america parking lot. then the thief takes a trailer containing audiovisual equipment and 8,000 disneyland tickets. they were all for a conference in anaheim. the tickets have since been canc

caterpillar got a big drop. stock was actually rallying until the conference call, when they talked about profit being at the high water mark in the first quarter. analysts felt negative for the rest of the year. google also moving lower. they moved higher on the innings be yesterday, but this latest session, the focus was on capital expenditures. 3m, another story of concern on wall street, about weakness. on stock taking a big hit the outlook for the company and the view this other bellwether a less was also sending than healthy outlook, adding to pressure on the stock. let's go back and the bloomberg one more time. the final minutes of the previous show, ramy inocencio talked about the outlook for texas instruments, moving higher after hours. the rosy sales forecast provided them to move up, the largest provider of chips. the forecast beat all the estimates. that is diffusing concern about orders trimming off. the wednesday session as a positive in terms of text strength. betty: in the terminal and the metals

talking caterpillar as we see market selloff.ck in just a few mom it's -- moments and talk about it. it willcebook announced require more disclosure for advertisers pushing viewpoints on social issues as mark zuckerberg will face lawmakers angered over data leaks and russian internet trolls. facebook has told it up to 2.7 million people may have been affected by that data privacy crisis. the spokesman says facebook confirmed that number in a letter. >> it is clear this will need further follow-up discussions with facebook. >> facebook will begin letting users know whether their data has been compromised. a british health officials says the former russian spy left fighting for his life after exposure to a rare nerve agent is no longer in critical condition. triggereding

caterpillar pretty strong. >> caterpillar is a big number that raised guidance in terms of guidance catching of eyes. i think this is kind of last year's global synchronized industrial growth story showing up in the numbers. the market is interesting. it's not exactly sneezing on caterpillar's numbers. four percent gains shows that i think that psych logically the bar is pretty high even though earnings are coming in pretty good. the beats are expected if that makes any sense. they are better than expected but that was expected. i think that is what we have been deal wg. >> verizon >> it has been a difficult year for verizon. still down about six percent for the year. a name that many viewers know well. a bit better on the margin. service revenue in the wireless business did inflect positive in march which was important and one thing that a lot of analysts were focussed on. you saw the net adds. a lot of it was wearables. i think that sort of broadly reflective of people aren't doing much with phones. they are not changing their carriers and are sitting still until another upgrade cycle hits

you see caterpillar shares up. >> if we look at some of the caterpillar numbers here, you mention the by about 1.5% -- now about 3% on 30,000 shares worth of volume. digging through there like you said, the $2.82 on earnings per share is now comparable to the $2.13 you mentioned here $12.85 billion revenue beats the estimate you mentioned the forecast numbers. $10.25 to $11.25 is the full year forecast here $9.28 by comparison. so those caterpillar shares now moving a bit with regard to those numbers especially because of that forecast for full year profits. we're also taking a look at what's happening right now with shares of other ones as well just recap what's happening with verizon. shares are on the move right now about 2.2% to the upside 40,000 shares worth of volume as well as we're digging into this, some of the highlights we're pulling out here, they do mention they added about 260,000 postpaid additions. also the total revenue growth of about 4.7% there the wire line side of things, internet ads as well those are some of the ones we're watching caterpillar on the move. veriz

caterpillar felt like an important moment on what'd you miss yesterday.here was a question of whether or not this is as good as it gets. the market is affecting where we are with the yield and the ten-year yield. good earnings, no reaction. julie: you look at twitter for instance -- scarlet: you look at twitter for instance, the outlook is doing so well, but the outlook is getting punished. ulia: and the 9% rally, after great results for netflix as well. tough times for facebook after the bell. let's get the first word news with mark crumpton. mark: got support from key supreme court justices. it looks at a policy that it definitely bars more than 150 million from entering the united states. the chief justice john roberts and associate justice anthony kennedy both indicated they were skeptical of arguments against the policy, including -- claims president trump was motivated by bias. it will likely issue its ruling in june. a federal judge has handed a trump administration a loss on the so-called dreamers. the judge rolled the government must resume a pro

let's talk about caterpillar because that's really what happened.good old business took over yesterday during the day when you have good news coming out of caterpillar talking about the fact they are higher. this may be as good as we get. that seems to be the bigger story, the bigger tariff. >> that's another thing, but let's put caterpillar and 3m together. 200% the stock in about two years. could you say, yeah, people want to take pakistan even the slightest staff. caterpillar's business is still strong. 3m's news was even more interest in. just january, cheryl. january the stock was at an all-time high and stay in business looks great. it's rosie. had it not all cylinders. doing the right thing. i'm scratching my head saying three, four later you are saying it's kind of the economy and earnings. i take all of this with a grain of salt. what you open with this precisely at. the economy is still strong. earnings should be going out. taxes are coming down. it's everything perfect? no. the foundation is strong. cheryl: i'm with you right there. thank

caterpillar saw a nice move higher after forecasted. can it hold that level?g to positive -- investors reacting to positive boosting. alix: are we looking to far into the future that it might not be able to sustain itself? david: going to the commodities. alix: that wraps it up for "bloomberg daybreak." be ang jonathan ferro will 3% yield watch. earnings help propel the dow and s&p futures higher. this is bloomberg. ♪ ♪ jonathan: from new york city and our viewers worldwide, the jonathan. this is the countdown to the -- me jonathan. -- i'm jonathan ferro. become a down to -- this is the countdown to the open. ♪ jonathan: coming up president macron arriving in washington hoping to keep the united states in the iran nuclear deal. treasury offering 32 billion into your notes. data.economic german business confidence extending. 30 minutes away from the opening . futures look like this. up a half of 1%. markets with strength over the previous five days. euro-dollar going nowhere. treasury on a hunt for 3%. 2.99 is where we trade right now, up by a single basis poin

especially in the middle of the day, we start to see a steeper selloff led by the dow and caterpillarcaterpillar put a strong first quarter, but made an oblique comment on a conference call over the course of the year. that sparked a bit of a selloff. this has very much to do with alphabet, the internet giant reported yesterday a strong quarter beating earnings and sales estimates. those rising traffic acquisition costs, food for the bears. that stock down on the day 4.5%. that weight on the rest of the tech sector. so many earnings reports coming out this week. one spot of relative strength, the chip sector. of 1%.st about 8/10th intel and texas instruments hanging in. of 1%. texas instruments after about, a-- after the bell, a better-than-expected quarter. micron down once again. one investor has been pretty bearish on this name over the memory cycle. that same analyst initiated a sell rating on intel, so interesting how that will play out for micron. jitters around this earnings report. something to observe here, there seems to be some sort of but, some sort of nuance investors are

stocks like 3m and caterpillar hit hard in yesterday's session.t is going to be interesting to see how your opens. at the moment it looks as europe is going to have a reasonable start, relative to that performance. let me show you what the features look like. it is a picture of negativity, but it is not down as much. we have priced some of it in already. it is going to be a negative start. we've got our own corporate earnings to that just as well. european banks remain a significant overweight position for global hedge fund managers. we are going to talk about whether or not those numbers are coming through. let's get a first word news update with juliette saly. .uliette: thank you emmanuel macron wants to negotiate a new agreement with iran that would curb its developer of ballistic missiles and contain its involvement in regional wars in addition to halting nuclear program. they came after trump earlier warned iran not to restart its nuclear program, even if the u.s. withdraws from the accord. >> i believe we can combine our common views and dif

anna: did a caterpillar scare away the bulls?anus: a new accord, emmanuel macron once a new agreement with iran. president trump warns tehran about restarting its nuclear program. president trump: they will not start anything or they will have bigger problems than they ever had before. anna: earnings season is in full swing. ♪ anna: very good morning everybody. this is "bloomberg daybreak: europe." the swiss banking giant, credit -- they sayxpect their confidence and growth , they arein wealth also giving a revenue number. francs.llion swiss they seem to have beaten on the top line. the first is the estimate the company provided. analysts have been to some extent lower in their estimates for credit suisse. business is akets big focus in these numbers. it will be interesting to see how they do in terms of the fx, because of pricing of a large number of products they offer. profits, quarter net let's get a comparison. , we will bring you a live interview with the credit suisse ceo. he will be joining the bloomberg team after 10:00

caterpillar beat expectations on earnings and revenue.his right of on earnings of $2.82 a share, revenue $12.86 billion, both better than expected. stock is up. 3m is down 2.5%. coca-cola is up, travelers is down. united technologies is up. we are looking at a rally in the broader market this morning. right here, this is the high of the morning, up 160 points on the dow jones industrial average, 2/3 of 1% higher. s&p is also up half a percent and the nasdaq as well with a 32 point move right now. this after a mixed day yesterday. the dow industrials extended the losing streak for a fourth session in a row. the dow was down a fraction but still four days on the losing end. checking the global markets this morning. european indices are higher. the dax index in germany is up a third of a percent. in asia overnight stocks closed mostly higher. the shanghai composite was the best performer. it was up about 2% in china. big tech in focus, investors are raising concerns about apple. there's a warning of a slowdown in deimagined fo demand for hig

we need to check in on caterpillar. up about a percent, the gain does little to neutralize the big drop it endured yesterday. remember during the show, you better have been here with me, that's when ceo said spiking steel prices will force the heavy equipment makers's material costs to increase more than the company it expected. what happened? a flurry of price target cuts and downgrades last night and this morning for caterpillar but the u.s. steel makers, flip over to them, having a much better day than caterpillar is, maybe because it doesn't appear that french president emmanuel macron about to take the stage at gw university in d.c. he hasn't said to liberate france permanently from the 25% tariffs on foreign steel he imposed on march 1. but president macron tried. in his speech before u.s. congress members on capitol hill this morning, tried to convince lawmakers that tariffs on allies hurt nearly everyone. listen. >> the commercial war, opposing the lines cannot consistent with our mission, with our history, with

and got a whole bunch of cat caterpillars everywhere. thousands of them. >> look at his back. wildlife officials say the increase is due to the milder climate. the city says the caterpillars are disappearing quickly now because of some treatments to keep them at bay. >>> now to a live look for you as the sun shines on 101 in san jose. this is one of the many local roadways littered with trash. so the state of california is now doing something about it. caltrans says it plans to clean up santa clara county freeways. workers will clear garbage and do more vegetation control on 101, on 280, on 237, and on 85. gosh, that makes you sad looking at that. >>> well, let's check in now with vianey arana with a look at our weekend forecast. nothing to be sad about here. >> a good one. expected to be very sunny for your saturday, so if you have any outdoor plans, parties, walks, hikes, today's going to be absolutely perfect for them. peninsula right now at 50 degrees, tri-valley 45, south bay 49. you can see the sun right off the corner in the south bay, and look at san francisco. nice, c

. >> park officials say it appears to be a western tussock moth caterpillar commonly found in april.n prior years, but the caterpillars aren't dangerous. >>> another burned out shell of a home hot on the market in the bay area, asking price this time? about $1.5 million. check this out. it's listed at 1300 square feet, three bedrooms, two bathrooms. there may or may not be walls, but the real estate agent tells potential buyers that opportunity is knocking. also written on the real estate website enter at your own risk. le's headqu the home is on lassen avenue in mountain view near central expressway about 2 miles from google headquarters. we've seen this kind of thing before. this burned out san jose home went on the market for $800,000. the listing agent said it sold for above asking. the agency wouldn't say how much higher but said it was the highest of six above asking offers. mansion. last year payne mansion >>> it was one of san francisco's most expensive airbnb listing. now there will be a new way too experience this landmark mansion. last -- to experience this landmark mansio

. >>> on the "cbs moneywatch," a comment from caterpillar rattles the market, and amazon is deliveringiane king hall is at the new york stock exchange with that and more. good morning, diane. >> good morning, anne-marie. stocks plunged on fears oil prices and other prices will plunge along with program selling, but it was a comment by executives at machinery maker caterpillar that stoked the selloff. the dow skidded some 424 points. the s&p 500 dropped 35 points. the nasdaq tumbled 121 points. digging deeper into caterpillar, the company did beat earnings, but lost, but top brass said first quarter earnings would be the, quote, high watermark of the year and warned of higher prices after the trade dispute with china. there was a nosedive that dragged down other stocks with it. >>> the company formerly known as yahoo! is paying a $35 million fine to settle federal charges that it failed to disclose one of the biggest data breaches in internet history. personal data was stolen from hundreds of millions of yahoo! users in december of 2014. russian hackers were to blame. the breach wasn't

. >>> caterpillars are taking over mountain view. >> yeah. >> talk about yikes! >> you can get them through parks and playgrounds on lite posts and dangling from trees. park officials say they are western moth caterpillars which are commonly found in april. they say while the infestation is worse than prior years, the caterpillars are not dangerous. >>> it is "420". we'll show you some of the preparations under way for the annual celebration here in san francisco. that's just ahead. >> reporter: and drivers on the richmond/san rafael bridge this evening could be seeing some relief. i'll tell you why coming up. i'm michelle griego. and i'm anne makovec, kenny is off this morning. look >>> good morning, it is friday. yay! april 20th. i'm michelle griego. >> i'm anne makovec. we don't have to whisper it! yay! friday. we made it! san jose on the left, san rafael bridge on the right with light traffic. the afternoon commute is going to be easing up there tonight. we'll have more on that coming up later in the broadcast. but first, let's take a look at that weather for

let's start with caterpillar this was the best quarter i have ever seen from caterpillar everything, i mean everything was firing on all cylinders and every mark was on fire c caterpillar sells in mining, construction, infrastructure the company is coining money like ei've never seen it this quarter, this quarter was as good as it gets that was the problem, the chief financial officer dropped a bomb he said the outlook assumes that first quarter adjusted profit sale will be the high water mark for the year yup. it was literally as good as it gets which is crazy when you consider that cat raised its forecast by two bucks. to me it was confusing to others it was a chance to sell you can't hear a pin drop on a conference call or any analyst throwing up on the q and a had the lines been open at all, there would have been a moment of quiet and a cacophony of reflux puke up every share that was in miles of the blast zone. everyone in the call was still shaking from their projectile vomiting session was it rising commodity cost was it worries about global trade, competition, anything or per

we will watch that in the caterpillar reports. thank you. >> thank you.to want to watch this. 50 points in one quarter. an nba playoff game. jared max has a lot of sports, not. and then, the european commission launching an investigation into apple's acquisition of shazam. who will go to london for the controversy on this deal. look at futures as we go to break right now. wow, the dow up 105 and the free market. s&p and nasdaq moving up as well. we will be right back. ♪ which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they're less concerned with market volatility and can focus more on the things they're passionate about. talk with your advisor about shield annuities from brighthouse financial- established by metlife. racing isn't the only thing on my mind. and with godaddy, i'm making my ideas real. when i created my businesses, i needed a way to showcase it. ♪ with godaddy you can get a website to sell online. and it will look good. i made my own way. now it's time to m

and he had abigail talk about the likes of caterpillar.s is a notable headwind in technology -- $85 billion not out of fang stocks. itiro did in one day -- eroded in one day. emily: and the broader concerns about data privacy and how that will impact usage and advertising at companies like facebook and google. perfect: this is a storm because everyone was hoping earnings would take them out of these concerns about regulatory headwinds and data privacy. this is why you perhaps see a selloff. off the bat make many numbers when you look at its earnings -- turning's, and get the issues that echoed that off the bat shares price. alphabet is on a downward trajectory and he see the overall thank stocks that shows a tug on the overall fang complex. many people are getting nervous and is a reason why we see so much caution to volatility. this is a nice chart that you see the elevated fear around technology in the white line. this is a 30 day moving average of your implied volatility on an etf that is technology. this is highlighted by day contracts

i didn't listen to the call because i was in meetings, but what about caterpillar phenomenal look at the stock now. it's reversed. >> it's one of many companies that have had phenomenal earnings and sold off on the news goldman sachs last week, i'm going to say it again, you couldn't have had a better report from that i don't care about the buybacks. the stock is down 2% on the day? >> it's forward looking and may have discounted some of the great results. >> not caterpillar >> shocking. >> it could be sell the news that's a phenomenon that we didn't have in 2017, but you have had a return to this. >> i think cramer put it well today when he was on "squawk on the street" where he said it's not a market where money is chasing names going higher it's clearly the case. money is actually coming out and booking profits. >> doc >> what's the biggest ticket item that consumers purchase a home home builders are up today dh horton is up 2.25%. lenar is up, toll brothers are up, itb is up today. if 3% is such a line in the sand that we know jeff gunlock and others have said it is, why are thos

caterpillar weighed on the dow. been sharply traded lower by the end of the day with a big increase in the prices deal. rising treasury yield also at issue. look at where the 10 year treasury yield is right now hitting 3%. reported 02% at the highest level since january 2014. would you think of this move in the healed? >> you can look at it one of two ways. as a sign the economy is improving and that's good news. but you could also look at it that risk inflation will pick up and profit margins will be squeezed and not the way the market is take a nap right now. maria: there's a real question in terms of what will happen in terms of the rate rises this year. how significant a slowdown might create? is dagen: in anything but the word began to be rising interest rates which hurts profit margins. caterpillar yesterday's stock was down more than six were sent yesterday. they said that the first quarter might be the high water mark for the year. you get higher interest rates and inflation you get rising labor costs, highe

. >>> european stocks fall wall street lower after bellwether like caterpillar sound off on some worries >>> good morning, everybody. it is another day in europe. we're about one hour into trading. as you can see the heat map behind me is about two-thirds in the red, a third in the green. perhaps a bit more in line with the negative momentum in stocks over the last 24 hours it was a volatile session in u.s. equities. vix back up above 18 what was supposed to be a good day ended up a negative day as far as u.s. equities are concerned. the culprit being caterpillar stock, down more than 6% given the high water mark there and some concerns about future costs. of course a lot of talk about ten-year yields in the u.s. breaching that 3% mark sticking with equities for now, the picture for europe is not that pretty. the ftse 100 is down 0.3%, one hour into trading. down 20 points or so xetra dax is leading the charge. down 0.80 %. cac down 0.15% we have the ecb meeting tomorrow, and that will be important as far as equities are concerned. in the interim, all focus is on earnings we have retail

but caterpillar, a big loser on the dow jones industrial average, when you have the company, it came out with numbers for the quarter that were beat but on the conference call giving a cautionary tone saying that it was the high-water mark of the year in talking about rising steel prices and costs they're going to face. that was down 6%. 3m, down 6.8%. cut the guidance, travelers 3%, boeing 3%. when you put boeing and 3m and caterpillar together, that was 275 negative dow points at the lowest part of the day. did i not mention the 10-year yield, that huge. when the 10-year yield hits 3%, that weighs also. that starts to spook everybody as well. when that hit 3%, that was a big factor. we haven't seen that since 2014. i saw the tech titans slash. google came out with quarterly numbers after the bell. it was a beat but the costs are on the rise. alphabet is the proper name down 4.8%. facebook and google both negative for 2018. amazon, netflix, microsoft on the move and we'll watch for more earnings tomorrow. melissa: that's going to be big, the earnings tomorrow. thank you. phil, talk

and these funds will short caterpillar stocks and go long the stock of the united rentals. you still get the benefit of strong sales and infrastructure spending in america. still, i can see people doing this, i think it is a dangerous trade because if trump can settle with the chinese, caterpillar stock will take off. how about this one coffee now the chief growth engine of worldwide engine starbucks, happens to be china. that is where the real growth is personally, i thought the chinese will retaliate against t starbucks. but if they get really, really angry, you will see managers go short starbucks and go long duncan brands or mcdonald's. a triple venti cappuccino with skim tariff. now i made a joke earlier on squawk on the street, maybe it is time to long apple bees and short apple. of course i was being facetious. but apple has a lot of china exposure i could see china, i happy to pate putt them in the same sentence, i see china going after apple because it would hurt us in the pocketbook. even if it makes no sense economically right now we have a president who doesn't

but i can make the case that caterpillar wouldn't have said that caterpillar is up against some seriousprice that's enough. they got it up $2. i think it was a vast overreaction no one was thinking it was going to happen. when they reiterated on the call, it took people's breath away. >> i'm dying to hear what you think about boeing i'll have to stay tuned. >>> tomorrow our guest host will be jim chanos. tomorrow at "squawk box" 7:00 a.m. eastern time. we'll be right back. let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. but we should be seeing ymore range of motion., i'm fine. okay, well let's see you get up from the couch. i'm sorry, what