U.S. stocks dropped sharply on Tuesday, as corporations reported earnings that disappointed and orders fur U.S. business equipment unexpectedly declined in December.
Caterpillar fell in early New York trading after the making of mining and construction equipment reported a lower profit short of estimates.
Orders for business equipment fell 3.4 percent last month, illustrating the impact of the slowing global economy on U.S. multinationals.
“At first blush, this is a terrible report and we’ll have to go back and revise our Q4 GDP estimate. The odds of GDP printing 3.5 percent or more for the fifth quarter in the last six are now virtually nil,” Dan Greenhaus, chief strategist at BTIG emailed.
“This report is always volatile so we hesitate to read too much since many other data points are telling another story. Nonetheless, this is not a good report,” Greenhaus added.
Consumer confidence came in at 102.9 in January, the best read since August of 2007, while new-home sales came in at 481,000 in December.
Separately, home prices in 20 cities rose 4.3 percent in November, according to the S&P/Case-Shiller index of property values.
On Monday, U.S. stocks finished modestly ahead after the first weekly gain for equities in 2015, as investors mulled results from Greek elections and winter weather on the East Coast.
Coming Up This Week:
10 a.m.: Consumer-confidence index for January
2 p.m.: FOMC announcement
8:30 a.m.: Weekly jobless claims
10 a.m.: Pending-home sales for December
8:30 a.m.: Fourth-quarter GDP
9:55 a.m. Consumer-sentiment index for January