The Monday Market Minute

  • Dow Industrials component Caterpillar set the pattern for the day.
  • The Dow ended near lows of the day.
  • Nasdaq slammed on weakness in Facebook and Twitter. 

Market Snapshot

Stronger-than-expected earnings from Caterpillar Inc. (CAT) - Get Report  failed to boost overall sentiment Monday, as the Dow gave up early gains to end near its lows of the day while the Nasdaq moved sharply lower on weakness in techs. 

The Dow Jones Industrial Average I:DJI   fell 144 points, or 0.6% to 25,307, while the S&P 500 I:GSPC  lost 0.58%. The Nasdaq  I:IXIC , fell 1.4%. 

Caterpillar shares fell 1.9% after trading higher earlier on Monday. 

Facebook Inc.'s (FB) - Get Report  troubles continued as the stock ended down 2.1% on continued fallout from its $119 billion slide last week. Sub-par quarterly results from FAANG member Netflix Inc. (NFLX) - Get Report and chipmaker Intel Corp. (INTC) - Get Report  also put investors on the defensive heading into the end of the week on Wall Street, even though forecast-smashing numbers from Amazon Inc. (AMZN) - Get Report steadied nerves somewhate.

Investors won't have to wait long to find out if tech will continue to drive near-term sentiment, however, with Apple Inc. (AAPL) - Get Report set to report its fiscal third quarter earnings after the close of trading on Tuesday. FactSet estimates suggest the Cupertino, Calif.-based group to report Q3 EPS of $2.16 per share, a 29% increase from the same period last year, on sales of $52.3 billion.

Apple shares fell 0.6%.

The iphone maker's update comes amid another busy week for corporate reporting, with earnings expected from 140 companies listed on the S&P 500 including Lowe's (L) - Get Report , Pfizer Inc. (PFE) - Get Report , Proctor & Gamble Co. (PG) - Get Report , Telsa Inc. (TSLA) - Get Report , CBS Corp. (CBS) - Get Report and Warren Buffet's Berkshire Hathaway Inc. (BRK.A) - Get Report .

Overall, corporate earnings are set to grow at 22.7% for this earnings season, the second-fastest pace in the past eight years, bested only by the 23% advance recorded over the first three months of the year as the broader economy records its best GDP growth since mid-2014.

"I don't think this is a one- or two-year phenomenon. I think we definitely are in a period of four or five years of sustained 3 percent growth at least," U.S. Treasury Secretary Steven Mnuchin told Fox News Sunday. 

Global stocks drifted lower Monday, with tech shares weighing down benchmarks in Europe and Asia following the disappointing earnings from the FAANG complex last week.

Rate markets will also have plenty to chew on this week, with consumer confidence figures Tuesday and July payroll data Friday, sandwiched between a two-day Fed meeting that begins tomorrow in Washington amid recent criticism for its interest rate policy from President Trump.

The CME Group's FedWatch tool suggests little chance of a move on rates this week, but is pricing in an 88.7% chance of a hike in September and a 63.7% chance that the key Fed Funds rate will hit 2.25% by the end of the year. 

Global oil markets were firmer as prices rose higher amid some concern that Saudi Arabia's suspension of crude shipments through the Red Seas' Bab al-Mandeb straight will filter through and delay to deliveries in other parts of the world. A strike in the North Sea by oil rig workers on a platform owned by France's Total SA (TOT) - Get Report could further bottleneck supplies. 

Apple, Amazon and Facebook are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL, FB, AMZN? Learn more now.