we think it's way overdone i mean, today, caterpillar's problems were really caterpillar specific it was really manufacturing inefficiencies that drove them and right up and the business which won't repeat so, you know, if you strip back and look at the fundamentals in u.s., we still really like companies like oshkosh more domestic leveraged and not as dependent on china one way or the other at all we do think this pullback has been overdone. it's not the first time caterpillar has done this to the group and those were buying opportunities last year, particularly, q1 last year when the cap said it was high water mark of the year but everybody read it as the high water mark of the cycle. >> what about the longer term pullback on caterpillar? from the beginning of 2018, when we were hearing about the tariffs, the stock has gone from about $172 which is your current price target down to $120 chara. are you suggesting wall street overreacted to the slowdown and the tariffs that we've seen from china? >> we always believed that investors were overreacting to the tariffs. while it has incr

david: do they follow caterpillar, or is caterpillar a one-off?ter: what we've seen so far is a really mixed bag. united technologies had great numbers, really strong forecast. others like granger and black & decker have come in below where people were expecting. i think that's what you would expect to see at this point in the cycle. some of these cyclical names are these to turn smaller cycle areas. lisa: what happened to the whole idea we are moving from on a terry stimulus fiscal stimulus -- monetary stimulus to fiscal stimulus? guest: that kind of came off the table. [laughter] david: we can't keep the government going. lisa: some people are saying the democrats and republicans will work together and will have some sort of infrastructure spending. do using that is completely off the table? guest: i don't think it is completely off the table, but we are now in another election cycle. we have prospective nominees coming out. neither side of the aisle is going to want to do something drastic until we finish with that. we also have plenty of other

caterpillar, case in point.to show you the fall we have seen for the fourth quarter. 9.3% is the fault we have seen. this is the biggest fall really in the past decade. because of what we are seeing in terms of all of these gears that are shifting a little more down. you can see over the past few quarters, we can see this is negativity, piled on negativity. first quarter of 2018 down to 6% in terms of the initial market move after caterpillar came out. 7.6% across the board. this is the worst negative move over the past six quarters. flip of the board one more time because i want to show you how this breaks out in terms of the division and in terms of the geography for caterpillar. you can see at the top of the board, it is pretty good but then when you get to the bottom part, asia-pacific, that is the worst. north america is still the guiding light, up 17% for construction. for energy and transports, up 7%. 50% of caterpillar's revenue. asia-pacific, specifically china, 5% to 10% of revenues. you could say it i

those are things caterpillar would not talk to today.ard from the steel and aluminum companies talk to either. we are starting to move into uncharted territory. shery: great to have you with us, joe. the latest on caterpillar and the broader metals and commodities market. another story i'm keeping an ion are these ads for cannabis companies. on the show we always talk about the potential industry after the legalization of recreational marijuana in canada. here in a u.s., we are seeing more regulation when it comes to being able to advertise these companies in media. it is a definite no for television and streaming services. but these companies are trying to keep their brands alive through other methods, like opening up more shops. amanda: it's a sign of how complicated it is, in a market that is still federally but legalas a legal in some states. you have this strange situation where federal and state laws bump up against each other. maybe you should look north for the solution. do it everywhere or nowhere. at least it seems the attitude

caterpillar down the most 8%.nd then there are some companies expanding the halo effect. this is bloomberg. ♪ >> 30 minutes left in the european trading day. >> this is the european close on bloomberg markets. ago, -- 30 minutes to go until the end of regular trading. european stocks are softer with a similar story. season certainly kicking into high gear on both sides of the atlantic this week. the early opens aren't particularly good. we have not seen a particularly good start of the year for currency, it is down on the year but up on the session. the president of the ecb talking to the european parliament indicating that all tools are at disposal and if things go south all of them can be deployed. i just want to talk a little bit marketluminum, the metal certainly a big focus today. aluminum down on the global

caterpillar sinks as china weighs on results. is it a canary in the coal mine for what's ahead for the rest of the earnings season? >>> and bundle up, the country is gearing for record breaking cold temperatures. so why is nat gas sinking? ♪ this is "the exchange" on cnbc i love you. servicenow works for you. and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome. >>> the 2020 presidential race heating up with former starbucks ceo howard schultz considering a bid for higher office, here's what he said last night on "60 minutes". >> i am seriously thinking of running for president. i will run as a centrist independent. outside of the two-party system. >> then in a tweet former new york mayor mike bloomberg urged schultz not to r

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morgan brennan has more on why caterpillar cratered. >> reporter: it was an ugly quarter for caterpillar and the outlook isn't much better. for 2019 the maker of earth-moving machinery projected profit and sales that will grow, but grow less than analysts had expected. on the earnings call the ceo and chairman discussed the impact of slowing global growth coupled with higher manufacturing costs. >> we kept very close control ot you saw the costs in the fourth quarter were actually less than they were in the fourth quarter of 2017. i dod you that we are guiding to a sales -- a modest salesas inc in 2019 so we are not guiding to a sales decrea. having saithat, we'll closely monitor costs and always be ready for whatever the market sends us. >> reporter: caterpillar which comprises 10% of caterpillar sales was sharply in focus. the company now expects that market to be flat this year, even a other partsf the asia-pacific region grow. latin arica also remains weak and political uncertainties in europe. analysts say there is more uncertaintyuthat caterpill caterps miss had more to do with com

caterpillar rolled over a little bit.ely not as bad as people think they are. but all that to say, people are trying to get a better handle on guidance and what the earnings per share number is going to be. there's a wide variance between $168 per share to me, closer to $175 a share. charles: with caterpillar it reinforces that the u.s., doing better than the rest of the world. so paul, where does that put us with respect to this market? we have made this huge rebound and now we are in sort of this area with pretty thick resistance between now and the next major breakout. what's the catalyst that could potentially get us there? >> so first, this week, what do you have? you have an enormous slew of earnings, highlighted by facebook and apple. both have been unloved for six to eight months. i wouldn't be surprised if apple comes in a little better than their lowered guidance and facebook, i think the stock probably, unless they announce yet another crisis, probably could get a bounce after earnings. look, you got earnings a

, cummings, oshkosh, which makes specialty vehicles often moves in line with caterpillar, caterpillariversified geographically, not as much of a china story as nvidia is. 40% of revenue in the united states, canada, mainland china 5% of the revenues here. you get the idea here this company sells machinery all over the world. if there is some kind of slowdown, particularly in europe, they're going to feel it as well. that's the bottom line here. that's what we're seeing right here want to sum this all up, we have been talking a lot, mike wilson at morgan stanley was correct being bearish back in the fourth quarter. and his attitude today, just has a note out, with most stocks up 10% to 15% from the low, we think the risk reward is much less attractive at this point given the numerous hurdles still confronting equity investors right now just off the lows, down 328 points. hard to see there. back to you. >> all right, thank you, bob bob pisani >>> looking through now a letter from jensen huang, also out at the same time as the press release, giving a little more detail in terms of that n

you mentioned caterpillar today.port on thursday alone making this on thursday the single busiest earnings day of the season so far if you take a look at those names that are going to report, it will be huge to watch some of those key ones because of caterpillar on that commentary about china and what they're going to see also because of what's going to happen with apple. we got that huge news on january 3rd that they're cutting that key fourth quarter how much of that is priced in? apple shares already about 11% off of the lows we saw on january 3rd. and of course a lot of the commentary about globaltrade o u.p.s., amazon, we have an idea of what we're going to look for there. then on the oil and gas side with chevron and exxon on friday a lot of preview but we'll have around half of the s&p 500 companies reporting done by the time this week is over, guys back over to you, joe. >> thursday, huh >> thursday. 37 stocks in the s&p >> getting a little scratchy throat coming on i just -- you know, exhausted from davos an

m you are seeing almost 7% - you expect caterpillar to would expect caterpillar to be seeing g benefitsg through the chaos over the last couple of weeks, assuming there will be an extension 01’ assuming there will be an extension ora assuming there will be an extension or a deal. that is what it expects. if anything does not turn out like that, it will be a surprise. sterling has been reflecting more optimism about a deal than we are perhaps being in parliament. the face we will talk about starbucks, howard schultz and a potential run for president later. skinny latte or not? still to come... its website attracts 100 million visitors a year from 170 countires, with an average spend of more than $700. it's matchesfashion.com. i'll talk to the ceo about its humble beginnings. you're with business live from bbc news. domino's pizza group, which owns, operates and franchises the brand's stores in the uk and across europe, has released its latest figures. sales were up in the uk and online over the last quarter, but the cost of ambitious european expansion plans continues to impact profitabi

caterpillar really impacted by how china does. because of the concern of a slowdown in china, we see peers of caterpillar, like john deere come also down, as well as boeing. david: these came out this morning. did we learn anything on the earnings call? >> one they we learned is the share price ended up lower than it started during the earnings call, that was about 20 minutes ago it started. the ceo and cfo pained to talk about modest growth for 2019. we had a number of analysts on thatlog following that, that was really throwing cold water on any excitement that might have been expected for 2019. they said they do not expect to see the market down turning for them in the next year, they said the u.s. economy is a strong. but they also mentioned that tariffs are showing up in the numbers in china. david: any discussion about why they did not give guidance that avoided this, because typically we get a little cynical about investor relations and guiding down -- why are we surprised? >> it is a surprise because we've expectations and

you have caterpillar blaming weakness in china for its biggest miss in ten years? shouldn't we have been obliterated? nope instead, the pin action surprisingly muted the kind of roll where you would hit the one pin, glance off the two, and then it goes right into the gutter, something that almost never happens yet that's what we saw in the market between invideo ya and caterpillar you had to expect all the -- semiconductor stocks right? these seemed like two easy, obvious strikes, people, so why didn't the weakness spread like it would at the lanes? simple because this is some wacky crazy sort of bull market. it's one that doesn't want to go down this is a market that has a lot of hope. that hope has indeed paid off since the bottom in late december, and now big money managers are willing to press their bets even in the face of ugly numbers like we got from nvidia and caterpillar rather than focusing on the current weakness, these fund managers are thinking about how things might look down the road. usually they don't look through that valley. it's incredible. the

caterpillar is down almost 4%.gs this morning of $2.5 a share, versus an estimate of $2.99. that was the miss. on revenue it's basically pretty much in line at $14.34 billion versus an estimate of $14.33 billion. nonetheless, the stock is down 3 3/4%. this will weigh on markets because it's an indicator of construction, an indicator of infrastructure across the world, certainly in china and beyond. so we were waiting on kalt caterpillar. futures were lower before the numbers came out. the dow jones industrial average down 160 points, 2/3 of 1%. the s&p 500 is down a half a percent, 14 points lower, the nasdaq down 38. caterpillar also says it sees 2019 earnings in the middle of the range at $11.75 to $12.75 -- 12.75 billion versus an 11.64 estimate on 2019 estimate. so we're going to talk with lindsey bell in a moment about that guidance. major indices yesterday, tacked on gains on the heels of not a bad week. dow industrials up 184 points friday, three quarters of 1%. s&p was up 22 on friday, the nasdaq picking up

caterpillar is certainly influence sentiment.ispronouncing expectations for fourth-quarter earnings. earnings for the rest of the year will be slightly lower than what the analyst community was looking for. caterpillar talking about lower demand from china. on the know you have other industrials laying down the dow was well. worth about 85 points off the dow right now. boeing is going to be reporting earnings on wednesday. another industrial prion out on tuesday. similar pattern happening in technology he. down around 15%. huge earnings for tech shares as well. of course we will be hearing from apple, amazon, microsoft. facebook. the list is really long. 25% of the s&p 500 companies will be reporting earnings this week and on top of the earnings story there is also great investor anticipation ahead of the meetings in washington d.c. u.s. and china is what investors are looking for and of course the trump card here, which is the fed meeting and chairman jay powell whether or not he will indicate that the fed is still data dependen

caterpillar out with

coming up, caterpillar also ringing the alarm on china. more on that ahead.his is bloomberg. ♪ romaine: breaking news, whirlpool reporting earnings, coming in above estimates. four q neting on sales. the estimate was for $5.8 billion. their fiscal year forecast for the current fiscal year coming in at about $14-$15 per share. the estimate was for about $16 a share so the stock moving down almost 5% right now. now we turn to another company that is also blaming china for some of it's disappointing results, that is caterpillar. posted its biggest earnings miss in 10 years. joe, caterpillar is basically three companies in one. you have construction, mining, and oil. when you construction would be bad. what about the other two second -- segments? talk, if you the saw good movement in resource industries, like mining equipment, it would offset some of the troubles in constructions. , ase big mining machines pretty nice margin for them and that would help offset some of the problems were seeing in asia and other places. it just wasn't enough. thing, once you get in

we heard about china from caterpillar. so it is all about china.of the guidance we have here is related to bitcoin. the cost is mining and operating, it is worth more than the value. since bitcoin peaked, it has been off 20% and nvidia has fallen along with it. vonnie: thank you. this is bloomberg. ♪ vonnie: it is time for our global battle of the charts. seeking news first, we will a vote today on the pg&e bankruptcy waiver. and let's go back to the battle of the charts. in london, we have christine. >> my try today is all about the it, it is out of the bag and bears bad news for emerging markets. caterpillar, bad news for that company on the earnings front. it is a bellwether for the u.s. industry as well as emerging markets. as you can see, caterpillar chairs -- shares have tracked closely the ishares, the emerging markets etf, a representation of large and amid cap emerging-market stocks. and for the past year those two things have moved together. and today, caterpillar, certainly a bad omen for those emerging stocks. vonnie: and we will go now

caterpillar, 3m. unh was half of the dow's losses. huge earnings week. 25% of the s&p 500 companies will be posting a big day tomorrow for apple and tech. back to you guys in the studio. melissa: deirdre, thank you. thank you. deal or no deal, u.s. markets reacting to u.s.-china high level trade negotiations. the pressure piling up on both sides to cut a deal before the march deadline when tariffs could hit 25%. edward lawrence has been following the story very closely. edward, what's the latest on this? reporter: wednesday will be a very big day. the chinese vice premier is on his way to d.c. his plane has taken off from beijing. face-to-face meetings scheduled for wednesday and thursday with u.s. trade representative robert lighthizer. treasury secretary steve mnuchin also on the team to get a deal. >> let me remind people, we do have another 30 days after this. so my expectation is, that we'll make significant progress at these meetings. i would emphasize these are complicated issues. we have a timeline how we mapped out the 90 day

not least from nvidia and caterpillar which we got yesterday. spoke to the sap ceo bill mcdermott. he was bullish. what is your view in terms of where we are with global growth and whether you should be tilted toward risk or not? chris: if you look back at your go, we were in a situation where there was complete unanimity and a positive outlook on growth amongst investors. our feeling was the risks for all to the downside. it was difficult to pinpoint what was going to cause that downside risk to growth optimism but here we are year later and the pendulum has swung from uniform optimism to pretty profound gloom and despond and see. we can point to things like the bank of america, merrill lynch survey of fund managers which shows that expectations of growth and profit are as gloomy as they were in 2008, 2009. certainly comparable. we have come a long way. what happened here was partly trade, i think it is these other natural things. we saw the oil price go up considerably, we saw interest rate steadily going up. it was incremental but realtheless

one thing about caterpillar though -- >> pretty magnificent? >> magnificent. >> pretty magnificent doesn't make sense to me. >> magnificent. >> thank you. >> we can argue about the quarter, was it great, the quarter wasn't great, guidance wasn't great but was it that bad that we saw it today maybe the market is telling us that a deal with china isn't as close has of us want to believe. maybe that's what this selloff was telling us. >>> coming up, a storm of negative earnings sweeping through the market and one of wall street's biggest bears says it's about to get worse. he'll explain why he's given up on this 2019 rally >>> plus, as the earnings warnings pile up, what do you do if you own one of the companies sounding the alarm don't worry. guy will break it down. >>> and check out whirlpool, getting slammed down 7% after reporting moments ago. we'll give you wall street's first reaction to the numbers. live from times square, much more "ston" teth fa meyafr is minimums and fees. they seem to be the very foundation of your typical bank. capital

. >>> earnings, a big miss in the industrial sector as caterpillar misses many big name chips fall like a stack of bricks. what kind of impact does this have on the fed? what should we read about the rest of everyoning season. this is the biggest week of the quarter. the halftime report with scott wapner starts right now. >>> welcome. glad to have you with us let's begin. the markets. stocks lower following that disappointing earnings report. the guide down from nvidia not a great start to the busiest week of earning season you could have it from the industrial side with cat, tech and elsewhere because of the nvidia >> i think cat was much more important than nvidia. we talk about that before the stock bounced twice. last time bounced. their business isn't that good cat is a bigger story. cat is a bigger story because it touches so many parts of the economy. china was in there even though china is not what people think the biggest part of it but far from it. the way it took down the numbers down, 10% in terms of the mid range. the bottom was lower i think it gives you cause for pause. 2

caterpillar and apple as well.e for this can be that perhaps some of this bad news from china has already been baked into a lot of these companies. but moving forward, china's going to beget with debt with the central planning. even if the u.s. can get past this, i think china is going to suffer through its own fiscal mismanagement. cheryl: i want to go back to something that's interesting here. when you look at nvidia, the one year chart looks like a ski slope especially the last two months. these are companies that we already knew had this type of exposure. what about the companies that are going to report earnings and say, well, it's obviously the tariff fight, it's obviously the chinese economy when they're trying to hide maybe other things that are happening in the quarters. that's happened before. you've got to be honest about it. >> there's definitely truth to that. you have to expand that chart, particularly nvidia, that stock has been a home run prior to the recent selloff. valuation does matter. the valua

first of all, caterpillar forecast lower profit for the rest of the year and caterpillar was and caterpillar bringing the average way down. check bowing down. it doesn't report into 1% am going. big tak apple, amazon, facebook, microsoft all reported this week. they are all down significantly. look at amazon. definitely $50 a share. 3% down. talking percentages. you know you've got a big loss. but talk specifically about facebook facing a lawsuit. accused of duping kids on the site schemes. more bad pr down another $2 at 146. tesla reports profits coming up on wednesday. another stock is under pressure and it has been recently. he needs to get to 358. liz:.ballpark roasted has to pay a big chunk of the convertible bond. stuart: nowhere near it. 294 as we speak to president maduro has demanded military loyalty. he got up by the way. that followed a top official who recognized the new president. maduro has indeed backed down that u.s. diplomats get out of the country. he says they can stay in the also says he's open to talks. the question is what is the endgame here and when does the endgame?

rishaad: we've been whipsawed with what we've seen out of caterpillar. helping to really depress sentiment here. we've got a series of tech titans on the way. side, then we've got a slew of other geopolitical concerns. >> it is hard to look forward. we've been told that everything was in the price. when you see the reaction of caterpillar, it is hard to make that argument. rishaad: should never have believed that people. >> the concern is the earnings are starting to see the macro concerns when it came to china, the global wealth slowdown, and we are feeling that hit to asian markets. we are cooling off quite a bit here today. not as much as we saw in the u.s.. japan, nikkei still leading those losses. still seeing that haven buying into the japanese yen. some of these tech stocks, the chip stocks, really feeling these losses today in tokyo as well as taipei. taiex down about 1/8 of 1%. dropping theoil most in about a month when it came to these concerns of the equity market. that is sending shockwaves as well. zoom out to see what we are seeing broadly.

for its part, we should look at caterpillar. i will pull it up. we do have cat down about -- nearly 9%. it makes heavy equipment, obviously. it missed on fourth quarter earnings and issued disappointing earnings per share guidance for 2019. yes, just like apple, it cited weaker asia pacific sales due to lower demand in china. let me get to nvidia. the graphic chip maker also sounding the alarm on china's impact. the stock is on pace for its worst day in two months. this is a real momentum stock. down 14.33% at the moment. nvidia sliced its fourth quarter estimates by half a billion dollars. this is on top of the reduced forecast it already gave back in november. that is bringing all of those chip sector names down. they are taking it on the chin right now. applied materials which is a chip equipment maker, down nearly a percent. intel lower by 1.33%. micron technology down 2%. let me quickly check advanced microdevices because it, too, yes, is getting hammered, down about 7%. >>> to a major development regarding oil. embattled venezuelan president

i think there's a lot of reasons to like caterpillar in this market now, there will be an issue withyou take a look at this chart and you can see this big drop. a lot of that was the market itself as it was getting pushed down but also the strength in the dollar is something that will come up i wouldn't be as worried about that i think things will change listening to jonathan as well. this is a company that very easily could return to 150. >> what do you think about -- these stocks trade off of china trade. these stocks trade off of -- that whole trade complex trades off of china when we've looked at china growth slowing to basic historic lows and we don't know what that real number is, are you nervous about that it's a pretty big number coming from that area anyway. >> there is no doubt just under 50% is in the u.s. but you're right, steve. there is some reason to have some nervousness that's also why i think it trades at the multiple that it does this is a company, like i say, trades at 10, 11 times so it's very inexpensive i think because of that, much of that is already priced in

corporations we look at it more closely we've seen caterpillar this week with its biggest earnings miss in ten years the machine manufacture software is into in two ways actually one is the chinese slow slow down its exposure is about ten percent so about ten percent of its profits come from china and if china as an investing so much in infrastructure projects that's bad for caterpillar bought also it is directly affected by the tariffs on steel and other materials that have been put in place and that's just make it more more expensive to produce the company has lost one hundred million dollars on these tariffs alone we've also seen apple with a massive slump in sales in china another big u.s. brand as been suffering from these trade talks and harley davidson which got tangled up in these and this terror fight that trump is waging and that it is also has also very significantly low numbers and sales especially. in response to or because of you you counter terrorist because let's not forget dung trump is not just waging a fight with china he's put tariffs on these materials that affect m

/china trade talk story, caterpillar, boeing among the industrial stocks. so sensitive to any development coming out of china and these are the stocks also that we need to keep an eye on. this is a bigger deal than just apple. >> yeah. this is the case that it broadens out you look at 3m as well, they get a lot of revenue not only from asia pacific but then europe. the multi-nationals. if i had to look at a silver lining for the industrials, if we get a weaker dollar against some things, which is the yen right now, that might help these guys out in general, you're talking about economic slowdown in china that's going to hurt boeing, caterpillar, 3m. you name it, pick it sorry, tim >> the administration, i'm reminded of the interview that larry kudlow did on the halftime report where he said there was no end in sight on october 12th. talking about the economic boom. did they not expect, think that their trade war with china was going to have this sort of impact on the global economy and some of these companies like apple this quickly >> i'll tell you what, i

of course, caterpillar down 9% it's a -- >> those numbers weren't all >> no, that's the point.wsive russly to numbers that are just -- that's what makes people nervous, i think is that a little miss or a little of that and a little of that, and it's a big move. >> a lot of the dynamics in trade. we've been well flagged in terms of global cyclicality. in addition to apple after the bell, there are parts of the economy that are going quite well i think people have gotten very lost that there are value wags throughout that have become extremely attractive especially across the industrial space and some of the cyclicals. >> is the fed going to get it right? >> look, i think the fed is always by definition supposed to be a step behind, and, therefore, is reacting look, the fed seemsz to have clearly adjusted their language. the market clearly was off sides in terms of their expectation of how aggressive the fed would be. i think right now the fed is in more of a wait and see mode, and that's probably what markets need remember, the key to last week was really the sense that the bala

like caterpillar, facebook, boeing >> all of it right now we're looking at the glass half full. >> in addition to a trade talk and fed meetings, it will be jam packed let's get over to the half back at hq. >>> stocks out of woods or about to begin a new sell off. it's the critical question for your money this is the halftime report. >>> flights grounded by stocks soar the market shrugging off flight problems due to air traffic controller shortages because of the shutdown at several major airports the dow on pace for the fifth straight up week the s&p and nasdaq on the edge of keeping their streaks alive too. >>> the halftime report with scott wapner starts right now. >>> welcome. good to have you with us on this friday let's begin with the markets stocks having a big day to close out the week would be the fifth straight week of gains happy new year >> thank you >> seem to be pretty positive on where we're going to go this year >> we remain positive. the biggest head wind faced especially in the second half of 2018 is related to the u.s. political, geo political backdrop as it relates

sales and revenues >> caterpillar was not the only stock flagging the slowdown in china yesterday.dropped after the u.s. chip maker slashed its fourth quarter revenue guidance as it warned of slower chinese demand for its graphic processing units the lowered outlook has weighed on some of the the peers as well, including taiwan's semiconductor, advanced microdevices, and micron. they've already given a preguidance, and that's one of the reasons why apple is suffering versus its peers just taking a quick broader look nasdaq up almost 6% on the year. apple down 1%. do you think all of the bad news is baked into the price sno? >>. >> that's difficult to tell, and we'll find out more. the big problem for apple really is aside from all the china stuff, which we've heard an awful lot about in the last five minutes already, that its biggest problem is that two-thirds its revenue is iphone, and the premier smartphone market has basically topped out there is no more organic growth for it to be had realistically it needs to find other ways to grow, and that's going to be very, very difficult

if we get a trade deal with the chinese, caterpillar rallies 25 points most importantly, they didn'te yesterday closed up just a point from the train day lows that put the stock into a better position to bounce back today climbing 1.7%. the company expected to earn $5.87 per share this calendar year that's actually down from $7.03 last year. down 2019 is going to be a down year. the stock trade at 22 times earnings that is very expensive for a company with negative growth rate so where does nvidia deserve to trade. sn i spent years tracking the preannouncements the stock almost always take out the previous low when nvidia was trading at $124, xbekt wwe expected it to be better if you really want to bargain hunt after a nasty preannouncement, wait for the stock to take out the lees befolows before you buy it. that means you need to let it come down another $8 that is the take away from today's decline in nvidia. when a company hits you with a horrible preannouncement, you can't take out the stock nm it takes out $52 week lows. then there say case to be made it may be worth nibbling at

and construction equipment giant caterpillar also seems to be on a trend with a disappointing earnings report with ties to china and or trade issues total revenue for the company in q four twenty eight it was fourteen point three billion dollars an eleven percent increase over q four of the year before twenty seventeen earnings that two dollars and fifty five cents per share were also below expectations of two dollars ninety nine cents the company said mr trump's trade tariffs hurt their bottom line by an estimated get this one hundred million dollars and look at the five day chart here and that dramatic drop on the news see that hundred thirty six dollars per share down to one hundred thirty three bam they've gone from booming all time high last january january nineteenth of last year twenty seventeen twenty eighteen rather at one hundred seventy dollars per share to one hundred twenty four in trading today caterpillar has been especially vulnerable to cycles of boom and bust as it tries to chase enormous profits from the chinese construction sector now apparently in a cooling period.

. >> caterpillar viewed as a bellwether. 3m sells anything to everyone. finishing inof 11 the green. tech getting ready to report with apple and amd. let's look at what was driving the action at the close. apple, apple, apple, the big record at 4:30 after the bell. were looking at a long term chart. , investorsd down 1% getting nervous. this chart tells you investors don't know what to ask back. thee was a bearish announcement a couple of weeks ago. with the exception of 2000 eight, that average has provided strong support when tested in the past. tope sitting right on of that average, but we have a sell signal. 200-week, expect shares to drop precipitously. if it holds, shares could rally. ins is the growth for sales 2018, double digit in september, 21%. what investors are looking for in that holiday quarter, down 4.9%, 3.5% in the second quarter, all quarters modeled to the downside. will that be enough to support that stock? >> ebay is expected to report after the bell. we know it underperformed the s&p 500 come up 26% versus 6% drop in the s&p, and pa

caterpillar and nvidia site slowing demand from china.uropean futures point higher. -- investors becoming more our investors becoming more forgiving? theresa may abandoned her own deal with the eu in hopes of securing one with her party. ahead of a crucial vote today in parliament. where less than half an hour away from the start of european trading. take a look at the pound. we have a three-day chart. yesterday we were up over 132 in the beginning of the session. we are trading at 131.5. asinteresting asset to watch we get these amendments tabled in parliament and later on in two the vote. as far as futures are up, we did have gains in japanese stocks, we had gains on the csi 300, gains on the kospi. we have some risk on signals in today's market as well with the end little changed, the treasury yield little changed right now, gold little changed. it does look like we could have a positive start to trading in the european session. u.s. prosecutors have filed criminal charges against while way, the other big story after earnings and brexi

don't forget caterpillar had its issues. they said that big slowdown in china.his is volvo, ford quarter truck and a -- fourth quarter truck intake dropped by 15%. digesting thers earnings, trying to get that clearer picture on china and how concerned we should be about the slowdown and its impact on global earnings. -- msci pacifica next we look ahead to the fed. with that in mind, we are seeing a weaker dollar against the yuan , at its highest in july, and iron ore absolutely convulsed, after the to turmoil, world's largest producer outlined plans to cut output after a deadly dam breach. go back,eresa may, renegotiated deal that you told us was completely un-ren egotiable. is a hard brexit back on the table? we will put that to our guest host shortly. nasdaq is up 6/10 of 1%. go on the apple. although we had the morning from credit suisse this morning that a pervasive stock and the supply chain is to be kept an eye on. got away with we it as far as the nasdaq is concerned. what should we be watching today? nejra: that could just be a relief rally for today for

group to be permitted to make the journey the mountain of augusta is the second highest peak in caterpillar and a tracker spotted. the nearly one thousand eight hundred metre tall mountain is also believed to be the final resting place of augusta a revered hindu sage. because he was taught to be celibate women have until now not been permitted to make the trek. in hinduism menstruating women are considered impure. on the owners of the male dominated society think that a main street is where you don't comes over me men as individuals having personality having mind. just sex objects that women are just sex objects menstruating sex sort of just i don't think that door should be changed. but last november the get of the high court struck down the unofficial ban on women's entry into the smallest of these after the trick open for visitors the real started the journey she had fought to make but all these years. we are really excited the whole team because this is our way to me and we are really happy and barclaycard have been almost important thing is that we could break the bad break the bad out

earnings reports also some companies who could be affected by a terror of slide colley davidson or caterpillar boeing are also among the big companies to report their earnings in the next couple of days. keeping an eye on all the market movers there for us in new york thanking the ends. the head of goldman sachs said today that of britain doesn't manage a smooth exit from the european union the u.s. investment bank would scale down its role there goldman's david solomon made the comments of the world economic forum in davos and that there's a common theme in those meetings that ended today big concerns about the global economy and no clear picture of. in just a few hours time peace and quiet will return to davos the delegates who came here to seek solutions to the world's problems will be gone for another twelve months. as usual participants at this year's gathering tackled some big issues conversations focused on trade conflicts climate change and of course the many unanswered questions about britain's departure from the. prosecution. i think you know mother and johnny come back to be delayed

in the u.s., it is mixed, with anddow up .4%, caterpillar 3m pulling the index up. 500 is flat. good earnings stories and negative stories. the nasdaq is down .4%. this is "bloomberg." ♪ guy: live from london, i'm guy johnson. vonnie: and i'm vonnie quinn. this is bloomberg markets. guy: let's turn our attention to fin tech and the impact brexit is going to have. the ceo of u.k. lender zofa. it just got a spanking license in the u.k. thank you for spending -- got its banking license and the u.k. thank you for spending time with us. you just got your banking license. are you worried that if we get a , the credit quality you are seeing is going to do terrier rate and the -- is going to deteriorate and the npl is going to rise? through theent financial crisis and we have built up a good experience of understanding consumers. where itve disruption comes to a no deal brexit, a can lead to consumers losing jobs and not being able to stay up with their debt repayments. that is why companies like us have taken a more cautious approach to lending. we have been tightening cre

just look at the numbers out of caterpillar this week, the worst performance for caterpillar, a dow component indicator of the economy overall right in the heartland of america, worst performance in a decade. why? because of china's lowered demand yes. their economy is weaker but the trade war is hurting. if he goes ahead with this, doesn't it hurt u.s. companies more? >> half a dozen companies have said the same thing, slowing demand from china is a problem and the trade war is a problem. what could happen here is you could have the chinese step forward and say we'll buy a whole boat load literally and figuratively of soybeans and tractors and president trump is enamored with this idea that the trade deficit a sign of losing and he wants to narrow that deficit. so the chinese could step forward and make tweaks around the edges and big purchases but what robert lighthizer and what others in this administration want to see are structural changes and i think you will hear a lot about structural change changes. >> the president has, to the ire of senior justice department officials, in the past

caterpillar, that is impacting their business. talking about sluggish industrial activity and a reality check on slowing markets wherever you look. what do you make of the commentary coming out and the stock reactions to earnings? beenne: it's what we've bracing for the last couple of quarters. the second largest economy isn't in the type of shape that a lot of companies were hoping for. the companies you mentioned positioned themselves to take advantage of china's growing middle-class and massive population. now, they are getting hurt by the slowdown in the economy. david: the dog ate my homework excuse. there are problems with china -- alix: like the weather and retail. david: when they were on their way up, i didn't hear that it was china taking them up. peggy: a lot of these companies have been touting their business expansion in asia is something investors should be excited about. we are in a dramatic different situation than a year ago. first-quarter earnings last year were a pop. we have interest rates rising, trade wars, a

forecast for global growth also china's numbers coming out yesterday also playing a part of that caterpillar and 3m, this is two stocks shaving about -- >> so they're done one of the biggest movers to the down side. >> and check out oil, too, which is down about 3% and just hanging on to the $502 a barrel mark that's a worry, and also weak existing home seals this morning. bob pisani has more from the new york stock exchange. >> just remember what's been going on all essential alps, and we had a huge move, so we're a little overbought i don't think it's a big mover right now, but the china slowing story, lowest gdp since 1990 500 points in two days we priced in a trade deal right now. not a lot of room, but very concerned about the housing numbers. you can see it in the hows and diy. stanley and black & decker surprised everybody with very poor guidance. that's this space. >> we're going to talk more about that in a bit. we'll see you, thank you, bob. >> this week and finally smp movement he thinking the government -- i saw you coke your head a bit that one >> from nigh vantage point, it loo

had a poor outlook for the future caterpillar is often a harbinger with global growth the world may slowing down in anticipation, maybe, of a recession and that's what the markets are indicating let's end the hour with a quick update of the developing headlines from the white house the u.s. is issuing sanctions against venezuela's state-run oil company. the secretary treasury says america will see a very small impact on prices at u.s. gas stations nbc's andrea mitchell reports venezuela has the world's largest oil reserves but produces very heavy royal, which is not widely used in the united states >>> that's it for me, we will hand it over to "deadline: white house" with nicolle wallace right now. >>> hi, everyone, it's 4:00 in new york two things are clearer today than ever before, an alarming number of people in donald trump's orbit came into contact with russians and russian agents, and a growing list of them lied about it to congressional committees and federal law enforcement. the question we're left with today, why is the picture of friday's early morning arrest roger stone c