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Caterpillar Slips on Job Cuts; Stocks Fall Ahead of Yellen Speech

Caterpillar (CAT) was the worst performer on the Dow Thursday after it said it expects to cut as many as 5,000 jobs by the end of 2016.

Caterpillar (CAT) was the worst performer on the Dow Thursday after it said it expects to cut as many as 5,000 jobs by the end of 2016. The industrial machinery company also lowered full year sales forecasts by $1 billion to $48 billion. Stocks extended heavy losses as investors eagerly awaited a speech from Federal Reserve Chair Janet Yellen after markets close. Yellen is expected to touch upon monetary policy and inflation expectations. The housing market continued to showcase a robust recovery after new home sales in August jumped nearly 6% to an annual rate of 552,000, above economists' estimates. July home sales were also revised up. KB Home (KBH) fell despite a better-than-expected third quarter. The homebuilder reported a 43% surge in total sales.

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