CAT doing a bunch of layoffs and cutting revenue outlook..... IF that doesn't signal a global slowdown I don't know what does..... Never in their 90 year history have revenues fallen 4 years in a row SELL SELL SELL Markets headed for a BEART MARKET!!!!! Caterpillar announced Thursday that it expects to permanently reduce its workforce by 4,000 to 5,000 by the end of 2016. This comes as part of a corporate restructuring that the firm said will lower operating costs by about $1.5 billion annually once implemented. The company also lowered its guidance for 2015, saying sales and revenues for the year are now expected to be about $48 billion—$1 billion lower than the previous outlook of about $49 billion. The Thursday announcement also said that expected 2016 sales and revenues will be about 5 percent below this year. Read MoreCramer: What's wrong with Caterpillar? Everything Shares of Caterpillar—which has a market cap of about $42 billion—fell more than 6 percent in premarket trading right after the announcement. Once the market opened, the stock traded down more than 7 percent. Beyond the short-term expected layoffs, Caterpillar said that its total workforce reduction could amount to more than 10,000 people—including possible manufacturing closures through 2018. "We are facing a convergence of challenging marketplace conditions in key regions and industry sectors -- namely in mining and energy," Doug Oberhelman, the company's chairman and CEO, said in a news release. "While we've already made substantial adjustments as these market conditions have emerged, we are taking even more decisive actions now. We don't make these decisions lightly, but I'm confident these additional steps will better position Caterpillar to deliver solid results when demand improves." The company also noted in its restructuring announcement that 2015 is the company's third consecutive down year for sales and revenues—and 2016 "would mark the first time in Caterpillar's 90-year history that sales and revenues have decreased four years in a row." Oberhelman pointed to areas of global weakness in explaining the company's move. "...several of the key industries we serve—including mining, oil and gas, construction and rail—have a long history of substantial cyclicality. While they are the right businesses to be in for the long term, we have to manage through what can be considerable and sometimes prolonged downturns," he said in the announcement. Read MoreCaterpillar CEO: Economy not pushing Fed to hike The construction and mining equipment manufacturer said it lowered its guidance because of "broadly weaker business conditions" in its three largest segments: construction industries, energy and transportation, and resource industries. The largest sales and revenue decline has come from the company's oil and gas-related business, Caterpillar said. Thursday's announced workforce reduction follows the company's total workforce reduction of more than 31,000 since mid-2012.
Watch for 16,000, a break below that and we could be back to AUGUST 24th lows in no time.... I think were headed to AUGUST 24th lows soon, we might get a bounce but those are opportunities to sell, not buy, lot of talking heads on cnbc think this bull market is still intact, its not...the bear market is coming and is ever so close.
PICTURE TIME......all the sad faces on wall street, I love it. wait till the bear market sets in, they will be showing tons of sad wallstreeters on the floor....boo hoo boo hooooooo..... UH OH YELLEN speaks again, she will just talk up the economy and offer wall street lots of dovish talk.....maybe after she speaks the markets will recover 1/2 their losses. Stocks stumble at open amid anxiety ahead of Yellen US stocks opened sharply lower on Thursday as traders looked to a speech on inflation and policy from the U.S. Federal Reserve chair.
Bought a little more GUSH on the dip at $10.25, Cost Average now down to $12.00 from $13.75! This thing can easily move 10-15% in a single day.