The Nasdaq has also been down for the past two days or more. The Nasdaq is where technology stocks exist. There has been a lot of disillusionment about the promise of technology stocks in recent weeks. So the downturn is predictable by simply listening to the news.
But, the industrials are sinking to some extent because of real losses and higher costs. Costs go up because of tariffs, the price of products go up and with industries like Caterpillar, those increases are not minor or absorbable. They are massive products that consume a lot of steel and there are tariffs in every country to inhibit imports, including steel.
Trump placed tariffs on 186 countries. That is not about promoting or protecting American products. Trump and his financial minions believe they can pay the deficit and debt with tariffs. That will only be temporary and we are now seeing real problems for real companies. This is permanent damage. Tariffs are not a fleeting thing and are designed to do damage to imports to protect American products. 186 countries? Really? That is not a scheme to protect American products, that is a LARGE DEGREE OF HOPE Trump could eliminate taxes and the let the rest of the world pay USA debts. Remember the laughter at the United Nations?
The downturn is measurable and real and has absolutely nothing to do with political fodder.
October 23, 2018
By Gina Heeb
...The Dow dropped 1.6%, (click here) or more than 400 points. The Nasdaq composite fell 1.9%, and the S&P 500 was down 1.6%....
...Industrial companies sank after corporate earnings in the sector disappointed. 3M (-8%) missed on both the top and bottom line and slashed its profit forecast for the year. Caterpillar (-7.8%) beat profit expectations but lowered its guidance, warning tariffs would push up its costs.
But, the industrials are sinking to some extent because of real losses and higher costs. Costs go up because of tariffs, the price of products go up and with industries like Caterpillar, those increases are not minor or absorbable. They are massive products that consume a lot of steel and there are tariffs in every country to inhibit imports, including steel.
Trump placed tariffs on 186 countries. That is not about promoting or protecting American products. Trump and his financial minions believe they can pay the deficit and debt with tariffs. That will only be temporary and we are now seeing real problems for real companies. This is permanent damage. Tariffs are not a fleeting thing and are designed to do damage to imports to protect American products. 186 countries? Really? That is not a scheme to protect American products, that is a LARGE DEGREE OF HOPE Trump could eliminate taxes and the let the rest of the world pay USA debts. Remember the laughter at the United Nations?
The downturn is measurable and real and has absolutely nothing to do with political fodder.
October 23, 2018
By Gina Heeb
...The Dow dropped 1.6%, (click here) or more than 400 points. The Nasdaq composite fell 1.9%, and the S&P 500 was down 1.6%....
...Industrial companies sank after corporate earnings in the sector disappointed. 3M (-8%) missed on both the top and bottom line and slashed its profit forecast for the year. Caterpillar (-7.8%) beat profit expectations but lowered its guidance, warning tariffs would push up its costs.
"Earnings results have been good, but not quite as strong as recent quarters," Lefkowitz added. "In the US, results this morning from industrial bellwethers have been mixed, with the outlook highly dependent on specific consumer markets and exposure to cost inflation."
Across the Atlantic, European stocks dropped to their lowest level in two years as Italy's plans to sharply increase public spending continued to rattle the region. Officials in Brussels have been pushing back against the populist government in Rome, calling the budget an unprecedented breach of European Union fiscal rules. The pan-European Stoxx 600 fell more than 1% to levels not seen since December 2016....
