Economy

Disappointing Caterpillar Earnings Weigh on Wall Street

Published

7 years ago

28/01/2019

By Investors Hub

The major U.S. index futures are pointing to a notably lower opening on Monday, with stocks likely to come under pressure after ending last week?s trading roughly flat.

A negative reaction to earnings news from Caterpillar (CAT) is likely to weigh on the markets, with the heavy equipment maker slumping by 5.8 percent in pre-market trading.

The drop by Caterpillar comes after the company reported weaker than expected fourth quarter earnings and forecast full-year 2019 earnings below analyst estimates.

Caterpillar Chairman and CEO Jim Umpleby said the outlook ?assumes a modest sales increase based on the fundamentals of our diverse end markets as well as the macroeconomic and geopolitical environment.?

Early trading activity may be somewhat subdued, however, as traders look ahead to key events later this week, including the release of the Labor Department?s closely watched monthly jobs report on Friday.

The Federal Reserve?s monetary policy decision on Wednesday is also likely to attract attention, although the central bank is widely expected to leave interest rates unchanged after last month?s rate hike.

Traders are also likely to watch closely for any news regarding a new round of trade talks between U.S. and Chinese officials in Washington this week.

Following the volatility seen over the two previous sessions, stocks moved significantly higher over the course of the trading day on Friday. The major averages all climbed firmly into positive territory after ending Thursday’s trading mixed.

While the major averages pulled back off their highs of the session, the Dow and the Nasdaq still ended the day at their best closing levels in well over a month.

The Dow climbed 183.96 points or 0.8 percent to 24,737.20, the Nasdaq jumped 91.40 points or 1.3 percent to 7,164.86 and the S&P 500 advanced 22.43 points or 0.9 percent to 2,664.76.

For the holiday-shortened week, the Dow and the Nasdaq both inched up by 0.1 percent, while the S&P 500 edged down by 0.2 percent.

The strength on Wall Street came after U.S. Treasury Secretary Steven Mnuchin reportedly said the U.S. and China are making “a lot of progress” in trade talks.

A report from Reuters said Mnuchin is looking forward to a meeting with Chinese Vice Premier Liu He next week, which will also include discussions on currency issues.

The comments from Mnuchin conflict with remarks by Commerce Secretary Wilbur Ross, who told CNBC on Thursday the U.S. is “miles and miles” from a trade deal with China.

“Frankly, that shouldn’t be too surprising,” Ross said in an interview on CNBC’s “Squawk Box,” noting the U.S. and China have “lots and lots of issues.”

Stocks remained firmly positive as President Donald Trump announced an agreement to end the record-setting government shutdown.

Trump revealed in a speech from the White House rose garden that lawmakers will vote later today on legislation to fund the shuttered parts of the government until February 15th.

The bill will not include money for Trump’s controversial border wall, which was the issue that led to the longest government shutdown in U.S. history.

Trump indicated that the three weeks of funding provided by the legislation would give lawmakers time to negotiate on the contentious issue of border security.

“Many disagree, but I really feel that, working with Democrats and Republicans, we can make a truly great and secure deal happen for everyone,” Trump said.

With the announcement, Trump seemed to give in to Democratic demands to re-open the government before negotiating on border security.

However, if an agreement on border security is not reached by February 15th, Trump suggested the government could shut down again or he could declare the situation on the border a national emergency.

Gold stocks showed a substantial move to the upside on the day, driving the NYSE Arca Gold Bugs Index up by 3.8 percent. The rally by gold stocks came amid a sharp increase by the price of the precious metal.

Considerable strength was also visible among computer hardware stocks, as reflected by the 3.5 percent spike by the NYSE Arca Computer Hardware Index.

Hard drive maker Western Digital (WDC) posted a standout gain after reporting fiscal second quarter earnings that missed analyst estimates but forecasting stronger second half sales.

Oil service stocks also moved notably higher amid an increase by the price of crude oil, resulting in a 3.1 percent jump by the Philadelphia Oil Service Index.

Semiconductor, steel, and chemical stocks also saw significant strength on the day, while utilities stocks were among the few groups to buck the uptrend.

Economy

Tinubu Okays Extension of Ban on Raw Shea Nut Export by One Year

Published

1 hour ago

26/02/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The ban on the export of raw shea nuts from Nigeria has been extended by one year by President Bola Tinubu.

A statement from the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, on Wednesday disclosed that the ban is now till February 25, 2027.

It was emphasised that this decision underscores the administration’s commitment to advancing industrial development, strengthening domestic value addition, and supporting the objectives of the Renewed Hope Agenda.

The ban aims to deepen processing capacity within Nigeria, enhance livelihoods in shea-producing communities, and promote the growth of Nigerian exports anchored on value-added products, the statement noted.

To further these objectives, President Tinubu has authorised the two Ministers of the Federal Ministry of Industry, Trade and Investment, and the Presidential Food Security Coordination Unit (PFSCU), to coordinate the implementation of a unified, evidence-based national framework that aligns industrialisation, trade, and investment priorities across the shea nut value chain.

He also approved the adoption of an export framework established by the Nigerian Commodity Exchange (NCX) and the withdrawal of all waivers allowing the direct export of raw shea nuts.

The President directed that any excess supply of raw shea nuts should be exported exclusively through the NCX framework, in accordance with the approved guidelines.

Additionally, he directed the Federal Ministry of Finance to provide access to a dedicated NESS Support Window to enable the Federal Ministry of Industry, Trade and Investment to pilot a Livelihood Finance Mechanism to strengthen production and processing capacity.

Shea nuts, the oil-rich fruits from the shea tree common in the Savanna belt of Nigeria, are the raw material for shea butter, renowned for its moisturising, anti-inflammatory, and antioxidant properties. The extracted butter is a principal ingredient in cosmetics for skin and hair, as well as in edible cooking oil. The Federal Government encourages processing shea nuts into butter locally, as butter fetches between 10 and 20 times the price of the raw nuts.

The federal government said it remains committed to policies that promote inclusive growth, local manufacturing and position Nigeria as a competitive participant in global agricultural value chains.

Economy

NASD Bourse Rebounds as Unlisted Security Index Rises 1.27%

Published

1 hour ago

26/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange expanded for the first session this week by 1.27 per cent on Wednesday, February 25.

This lifted the NASD Unlisted Security Index (NSI) above 4,000 points, with a 50.45-point addition to close at 4,025.25 points compared with the previous day’s 3,974.80 points, as the market capitalisation added N30.19 billion to close at N2.408 trillion versus Tuesday’s N2.378 trillion.

At the trading session, FrieslandCampina Wamco Nigeria Plc grew by N5.00 to trade at N100.00 per share compared with the previous day’s N95.00 per share, Central Securities Clearing System (CSCS) Plc improved by N4.18 to sell at N70.00 per unit versus N65.82 per unit, and First Trust Mortgage Bank Plc increased by 14 Kobo to trade at N1.59 per share compared with the previous day’s N1.45 per share.

However, the share price of Geo-Fluids Plc depreciated by 27 Kobo at midweek to close at N3.27 per unit, in contrast to the N3.30 per unit it was transacted a day earlier.

At the midweek session, the volume of securities went down by 25.3 per cent to 8.7 million units from 11.6 million units, the value of securities decreased by 92.5 per cent to N80.7 million from N1.2 billion, and the number of deals slipped by 33.3 per cent to 32 deals from the preceding session’s 48 deals.

At the close of business, CSCS Plc remained the most traded stock by value on a year-to-date basis with 34.1 million units exchanged for N2.0 billion, trailed by Okitipupa Plc with 6.3 million units traded for N1.1 billion, and Geo-Fluids Plc with 122.0 million units valued at N478.0 million.

Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.05 billion units valued at N408.7 million, followed by Geo-Fluids Plc with 122.0 million units sold for N478.0 million, and CSCS Plc with 34.1 million units worth N2.0 billion.

Economy

Investors Lose N73bn as Bears Tighten Grip on Stock Exchange

Published

2 hours ago

26/02/2026

Dipo Olowookere

By Dipo Olowookere

The bears consolidated their dominance on the Nigerian Exchange (NGX) Limited on Wednesday, inflicting an additional 0.09 per cent cut on the market.

At midweek, the market capitalisation of the domestic stock exchange went down by N73 billion to N124.754 trillion from the preceding day’s N124.827 trillion, and the All-Share Index (ASI) slipped by 114.32 points to 194,370.20 points from 194,484.52 points.

A look at the sectoral performance showed that only the consumer goods index closed in green, gaining 1.19 per cent due to buying pressure.

However, sustained profit-taking weakened the insurance space by 3.79 per cent, the banking index slumped by 2.07 per cent, the energy counter went down by 0.24 per cent, and the industrial goods sector shrank by 0.22 per cent.

Business Post reports that 25 equities ended on the gainers’ chart, and 54 equities finished on the losers’ table, representing a negative market breadth index and weak investor sentiment.

RT Briscoe lost 10.00 per cent to sell for N10.35, ABC Transport crashed by 10.00 per cent to N6.75, SAHCO depreciated by 9.98 per cent to N139.35, Haldane McCall gave up 9.93 per cent to trade at N3.99, and Vitafoam Nigeria decreased by 9.93 per cent to N112.50.

Conversely, Jaiz Bank gained 9.95 per cent to settle at N14.03, Okomu Oil appreciated by 9.93 per cent to N1,765.00, Trans-nationwide Express chalked up 9.77 per cent to close at N2.36, Fortis Global Insurance moved up by 9.72 per cent to 79 Kobo, and Champion Breweries rose by 5.39 per cent to N17.60.

Yesterday, 1.4 billion shares worth N46.2 billion were transacted in 70,222 deals compared with the 1.1 billion shares valued at N53.4 billion traded in 72,218 deals a day earlier, implying a rise in the trading volume by 27.27 per cent, and a decline in the trading value and number of deals by 13.48 per cent and 2.76 per cent, respectively.

Fortis Global Insurance ended the session as the busiest stock after trading 193.7 million units for N152.7 million, Zenith Bank transacted 120.7 million units worth N11.1 billion, Japaul exchanged 114.8 million units valued at N407.0 million, Ellah Lakes sold 98.4 million units worth N999.2 million, and Access Holdings traded 63.1 million units valued at N1.7 billion.