It was a tough start to the week; Caterpillar (CAT) and Nvidia (NVDA) pummeled out of the gate. The question is how many of their disappointments are indicative of their respective industries and the broad market. I could argue both have individual issues, especially Nvidia, which has suffered a massive correction in step with the massive decline in cryptocurrencies. However, there is a common overarching narrative that the global economy is vulnerable, and the United States is still firing on all cylinders, even if it’s slower than last year.

All the key indices held at critical support points and rebounded into the close as investors found comfort in Consumer Staples (XLP) and Real Estate (XLRE) names. Meanwhile, I was struck by the new highs versus the new lows.

Overall, it was an ugly session on Monday. After the close, it didn’t get any better when Whirlpool (WHR) posted mixed results and guidance below consensus. Even though raw material and tariffs hit North America by $30 million in the fourth quarter, the region still stands out big time in 2019.  Unfortunately, the other parts of the globe aren’t going to be as robust.

Whirlpool 2019, earnings before interest and taxes (EBIT)

• North Arrow Minerals (NAR): 12%
• Europe, the Middle East and Africa (EMEA): 1%
• Asia-Pacific (APAC): 6%
• Lam Research (LAR): 6%

Political & Geopolitical

Reports after the close indicate that acting Attorney General Matt Whitaker says the Mueller investigation is close to being completed. He hopes there will be a report from Director Mueller as soon as possible. Please, let’s bring this thing to a close.

The United States increased economic pressure on Nicolas Maduro to relinquish his claims to the presidency of Venezuela.

Earnings Parade

The avalanche of earnings release continues today with all eyes on Apple (AAPL) after the closing bell.

Today’s Session