AA beat but beat pretty low expectations, Cummings however did the worst thing possible and lowered guidance. Just like that song, "What have you done for me lately?", it's not about what you did, but what the market expects you will do and Cummings (CMI)
said they expect to lay off 1500 people and lowers sales forecast by a billion dollars to $17 bn.
This is all part of a macro economic trend in the data if you just look past the headline number and read the bullet points of economic reports. Manufacturing has been in a slide for some time, at least since April and probably earlier, but seasonal adjustments masked the weakness.
CMI is down -4.23% in after hours. CAT is down -1.5% in sympathy.
Yet the Euro seems to be catching a little break from the downside.
The recent Euro intraday signals, the Euro has a positive correlation with the market including oil.
It would be very interesting to see what USO (+2.83%) and UCO (+5.46%) could do on a weaker dollar as their performance today was nothing short os spectacular on a stronger dollar.
Here you can see UCO's nearly 5.5% gain today came on dollar strength, which usually sends oil the opposite direction.
However the positive divergence in USO has been building all the way out to the 60 min chart as seen above, I'm not surprised it moved (That's why I opened the leveraged long UCO yesterday), I am surprised it moved so much with the $USD acting as strong headwinds.
No comments:
Post a Comment