Dow Jones Forecast: Industrial Average Slips as Microsoft and Caterpillar Disappoint
Meta Platforms is up 1% after beating expectations on both revenue and earnings. Tesla is climbing 2% despite missing estimates, as traders focus on its long-term strategy rather than short-term results.
Microsoft, however, is struggling, falling after forecasting fiscal third-quarter revenue between $67.7 billion and $68.7 billion, short of the $69.78 billion analysts expected. The stock’s decline is weighing on the broader tech sector. Nvidia remains a key focus after dropping 4% in the previous session, adding to concerns about recent weakness in semiconductor stocks.
Apple’s earnings are set for release after the closing bell, with Amazon following next week. These reports will play a crucial role in shaping sentiment around tech stocks.
What’s Dragging the Dow Lower?
Microsoft’s post-earnings drop is a key headwind for the Dow, alongside Caterpillar, which is down 4% after reporting fourth-quarter revenue of $16.22 billion, missing estimates of $16.39 billion. While Caterpillar posted stronger-than-expected earnings per share at $5.14, investors are concerned about the company’s 2025 guidance, which suggests potential weakness in sales and revenue.
UPS is also under pressure, falling over 13% after missing revenue estimates and announcing a deal with Amazon that will reduce its shipping volume by more than 50% by the second half of 2026. However, the stock’s decline is not a major factor for the Dow’s movement.