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Pre-Market: Caterpillar Plunges on Earnings, Boeing Raises Outlook


Investors are also calling the top on Netflix.

Following a day of record highs, US stocks are pulling back as major companies report earnings and Chinese interest rates rise.

Yesterday, worse-than-expected jobs numbers sent stock markets higher as investors took it as a sign that incoming Fed Chairwoman Janet Yellen will not scale back quantitative easing any time soon. This morning, index futures are mostly lower. Dow (INDEXDJX:.DJI) futures were down 0.44% at 15,330 and contracts on the S&P 500 (INDEXSP:.INX) fell 0.50% to 1,740.60. Nasdaq (INDEXNASDAQ:.IXIC) futures fell 0.56% to 3,337.75.

The government reported today that September export prices rose 0.3% while import prices rose 0.2%. Also, later this morning, the Federal Housing Finance Agency will release its house price index for August. The index is expected to ease to 0.8% from 1% in July.

Overseas stocks also fell overnight. China's central bank may tighten its cash supply to quell inflation risks, according to an advisor to the People's Bank of China. The PBOC refrained from adding funds to the markets today, causing short-term rates to surge.

The European Central Bank said that it will put eurozone financial institutions through stress tests in 2014 to restore confidence, but some fear that testing might uncover inconvenient truths and diminish confidence in the sector.

As earnings season continues, results from major Dow-component corporations will get the spotlight today. Boeing (NYSE:BA) reported that third quarter profit rose 12% to $1.2 billion. Adjusted EPS rose to $1.80 from $1.55 a year ago as revenue rose $2.1 billion to $22.1 billion, beating expectations. The company said that it will speed up production of commercial planes. It now aims to produce twelve 787 Dreamliners per month by 2016. Boeing's 2013 profit forecast was raised, and shares of the aerospace company rose 3.28% in the pre-market.

Caterpillar (NYSE:CAT) shares dipped 4.34% before the bell as earnings fell 44%. The earth-moving company cut its guidance for the year to $5.50 per share from $5.60 per share. Third quarter earnings came in at $1.45 per share, down from $2.54 per share per year earlier. Revenue fell 18% to $13.42 billion.

Netflix (NASDAQ:NFLX), which sank 9.15% yesterday on fears that it was overvalued, declined by another 2% today after activist investor Carl Icahn said that he sold 3 million shares, or more than half of his holdings of the company.

Twitter: @vincent_trivett
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