Nvidia and Caterpillar Point to Weakness in China as Outlooks Dim

Flags of U.S. and China are placed for a meeting between Secretary of Agriculture Sonny Perdue and China's Minister of Agriculture Han Changfu in Beijing

Flags of U.S. and China are placed for a meeting between Secretary of Agriculture Sonny Perdue and China's Minister of Agriculture Han Changfu in Beijing

Warnings from Caterpillar and Nvidia on Monday about weakening demand from China signal investors could see more profit shortfalls from US companies that count on the world's No. 2 economy for a big portion of their business.

Tech giants Microsoft and Apple were also weighed down by China concerns.

The dollar fell against a basket of currencies as traders awaited the Federal Reserve's two-day policy meeting ending Wednesday and the results of U.S.

Goldman Sachs in a Friday note warned its clients about companies with big revenues from China.

Kristina Hooper, chief global market strategist at Invesco, expects a "widespread" effect from the global slowdown and said Apple was "the canary in the coal mine".

"With the Chinese economy struggling the way it is and with companies feeling the impact, the U.S.is also starting to realize that there is enough motivation to get a deal done". -China trade talks this week.

"Weakness in China is problematic for Caterpillar", CNN noted.

An increase in the provision for credit losses and write-offs in its financial products segment also cut into fourth-quarter earnings for the world's largest heavy-duty equipment maker.

"This is a week for investors to either move off their Christmas Eve lows or move lower". Economic growth in Europe slowed in the last half of 2018 and indicators at the start of this year have been weak. Fear of a potential recession took its toll on the stock market at the end of 2018, and the S&P 500 fell almost 20 percent between setting its record on September 20 and Christmas Eve.

OVERSEAS: The British FTSE lost 0.1 per cent. Germany's DAX fell 0.5 per cent and France's CAC 40 fell 0.78 per cent. Japan's Nikkei 225 stock index fell 0.6 per cent. Hong Kong's Hang Seng was flat, as was South Korea's Kospi. In addition to Nvidia, it called out Broadcom, Micron Technology, Qualcomm, Qorvo, Skyworks Solutions and Wynn Resort.

In the commodities market, US crude oil fell 3.2 percent, to settle at $51.99 per barrel in NY. Technically, Brent crude oil prices failed to break out of the key resistance level of $63 and has since entered into consolidation.

The company expects volatile oil prices to hurt its energy and transportation business this year. NY time.The Nasdaq 100 Index lost 1.3 percent.The Stoxx Europe 600 Index declined 1 percent.The MSCI Asia Pacific Index decreased 0.2 percent.The MSCI Emerging Market Index dipped 0.4 percent.

The Deerfield, Illinois-based company's manufacturing costs shot up by three percentage points in the fourth quarter from the third quarter.

Fellow Dow components Boeing Co fell 1.3 percent and 3M Co slipped 1.1 percent.

The euro rose 0.11 percent to $1.1425 while the Japanese yen strengthened 0.16 percent versus the greenback at 109.36 per dollar.

The yield on 10-year Treasuries decreased two basis points to 2.74 percent.The two-year rate was little changed at 2.61 percent.Germany's 10-year yield gained two basis points to 0.21 percent.

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