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Jacob Sonenshine: The two biggest headwinds for stocks today. First, let's start with the stock movements. S and P 500 down as much as 0.36% on Wednesday. EU stocks, we're going to get to why the EU is down as well, but global stocks are down. The EU stocks 600 is down 0.3%. Here, the big headwinds. One - Caterpillar, off the scene as an economic bellwether missed estimates on earnings and revenue quite badly. Revenue was $12.75 billion. Expectations were $13.57 billion. Earnings per share $2.66 cents. Expectations were $2 88 cents and the guidance, so it continues to get worst looking forward. Management is looking for earnings per share of between $10.59 cents and $11 and 9 cents, that was lowered from a previous expectation of 1206 to 1306 low volumes of capital goods sold. Dealers are cutting back their inventory. So that's obviously gonna hurt. CAT often sells through those dealers, low volumes because demand ... This is a another piece of evidence that global demand for capital goods is falling. One, because of the trade war. Two, independent of the trade war. So this is a very bad sign on a macro level. That's the one big headwind for stocks. The second big headwind, Brexit is delayed. That's going to be obviously bad for US stocks, but mostly bad for EU stocks. And that's why you see global stocks down as much as they are.

The global stock market was handed two big blows early Wednesday. 

Of course, when several markets around the globe sell-off in tandem, it's because investors perceive a high degree of macroeconomic risk. But there are specific factors causing that fear Wednesday. Even still, investors ultimately shook off those fears

The S&P 500 fell as much as 0.36%, with the other two major U.S. indexes falling as well. The Euro Stoxx 600 also fell 0.3%. By early afternoon, all three major U.S. indexes were up slightly, with the S&P 500 up 0.16%. The Euro Stoxx 600 then rose 0.15%.

Here's what the big factors are:

Caterpillar Missed Estimates

Caterpillar (CAT - Get Report) , the machinery and equipment behemoth often seen as a global economic bellwether, missed revenue and earnings per share estimates by a wide margin. 

Revenue for the quarter came in at $12.75 billion, against Wall Street's estimates of $13.57 billion. EPS was $2.66, missing analysts forecast of $2.88. Looking forward, things don't get better. Management lowered its full year EPS guidance to a range between $10.59 and $11.09 from a previous range of $12.06 to $13.06. 

Management cited lower sales volumes as equipment dealers scale back inventories ahead of what they see as weakening demand. Recently, industrial output globally has seen periodic hits to demand, as the trade war between the U.S. and China has begun to leak into the broader economic picture, not just companies directly impacted. 

The broader market continues to fear falling demand across the board. While the the broader market rebounded, Caterpillar shares remained in the red, down 0.36% to $133.21 apiece. 

Marginally aiding the market's rebound was Boeing's (BA - Get Report)  up move. The stock rose 1.28% to $341 a share. Boeing, another highly cyclical mega-cap industrial, missed earnings estimates, but said it thinks one regulator will approve of the 737 Max aircraft before 2020. 

Brexit Is Delayed

A Brexit agreement, which investors thought they were getting just a few days ago, has been delayed. 

British lawmakers have rejected Boris Johnson's speedy timetable for necessary laws for the U.K. to exit the European Union. The EU will now rule on a Brexit extension. 

This is undoubtedly bad news for EU investors, but U.S. investors have said for years now that Brexit does pose some risk to U.S. stocks. 

Caterpillar is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells CAT? Learn more now.

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