US equity futures slip after Caterpillar earnings miss

Bloomberg

US equity-index futures dipped and European stocks struggled for traction as investors plowed through earnings reports without finding much to justify optimism for global growth. Treasuries and European bonds advanced broadly.
S&P 500 and Dow Jones Industrial Average contracts fell after Caterpillar’s results missed analysts’ forecasts, sending the stock tumbling in pre-market trading. Contracts on the Nasdaq also edged lower after the selloff sparked by semiconductor giant Texas Instruments’ dismal fourth-quarter forecast.
The Stoxx Europe 600 Index drifted, with positive surprises from companies including Swedish construction giant ABB only balancing declines for technology and financial-services shares.
Equities were mixed in Asia, where Hong Kong underperformed after reports that China is drafting a plan to replace the city’s Chief Executive Carrie Lam. The pound fluctuated as the European Union considers granting another delay to the October 31 Brexit deadline. Yields fell on government bonds from Japan to the US and Europe.
A patch of mixed earnings has investors favoring bonds over stocks as they wait out the torrent of results still due this week, from Ford and Daimler to Microsoft and Boeing.
In Europe, eyes are focussing on Brussels, where an EU agreement to delay Brexit may lead to UK Prime Minister Boris Johnson seeking an early election.
Elsewhere, crude oil resumed its decline on indications US inventories expanded for a sixth week, the longest run of gains in almost a year. Gold gained for a second day.
Earnings season is in full swing with companies reporting including: Microsoft, Ford, Amazon.com, Daimler and Kia Motors.
Thursday brings monetary policy decisions from the European Central Bank and Bank Indonesia.
US factory orders for business equipment will provide a look into the strength of capital investment in September. The figures will show to what extent the latest tranche of tariffs on China and others is impacting investment decisions.
Futures on the S&P 500 Index decreased 0.2% in New York. The Stoxx Europe 600 Index dipped 0.2%. The UK’s FTSE 100 Index gained 0.3%. Italy’s FTSE MIB Index decreased 0.7%. Hong Kong’s Hang Seng Index sank 0.8%.
The Bloomberg Dollar Spot Index gained 0.1%. The British pound dipped 0.1% to $1.2862. The euro declined 0.1% to $1.1114. The Turkish lira strengthened 0.5% to 5.7772 per dollar. The Japanese yen was little changed at 108.46 per dollar.
The yield on 10-year Treasuries dipped two basis points to 1.74%. Britain’s 10-year yield fell four basis points to 0.671%. Italy’s 10-year yield decreased one basis point to 0.912%.
New Zealand’s 10-year yield decreased five basis points to 1.291%.
West Texas Intermediate crude fell 1% to $53.96 a barrel. Gold climbed 0.3% to $1,492.10 an ounce.
Iron ore gained 1% to $84.38 per metric ton.