All the News Is Bad News as Stocks ‘Flip the Switch’ on Earnings
- Caterpillar, 3M, Harley Davidson tumble after profit reports
- Earnings growth set to slow even as companies top estimates
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Throughout the bull market, earnings season has been a refuge for investors, a quarterly reassurance that all is well in corporate America. This time around it’s been anything but.
Look at Caterpillar Inc., plunging 9.4 percent after saying third-quarter income rose more than expected. Same thing with Harley Davidson, and with United Rentals Inc. last week, which lost 15 percent after sales and income exceeded targets. It’s been the story of equities all month, currently shaping up as the worst October in a decade.