The markets started the busy earnings week on a down note thanks in part to earnings out of Caterpillar. Guidance from Nvidia that also supported the IMF comments out of Davos last week that the world economy was slowing faster than expected. The Dow 30 was lower by 208 but closed well off its lows. The S&P 500 sold off 20, and the Nasdaq 100 closed lower by 79.

This week there are 122 names in the S&P 500 reporting earnings and 325 total to report, so many investors expect plenty of market action.

Sector News

Oil pulled back once again from its $54-a-barrel technical resistance area as investors respond to increasing supply here in the US, as well as more news of global economic slowdown. Since November, the price of oil has been unable to get back above the $54 price target. Later in the day, the US announced sanctions on Venezuela's state-run oil producer, which helped spark a small rally.

Semiconductors were lower today thanks in part to news out of Nvidia about a poor fourth quarter. This news continues to put the focus on the prediction that the chip sector is experiencing a slowdown and general oversupply. Intel reported last week that they also see a slowdown in the chip sector ahead.

Stock News

Caterpillar (CAT  ) shares were lower today as the company reported the triple whammy of earnings. Caterpillar reported earnings were down 14% and revenue that was lower than expected. They also lowered their forward guidance for 2019. The company cited weaker sales in China as one of the driving factors. The company currently gets 53.6% of their total revenues outside the US, which is more than 20% higher than any other company in the space.

Nvidia (NVDA  ) shares were also a big focus today as the company announced they would cut their fourth quarter revenue estimates by more than $500 million. The company also cited weaker demand for gaming chips in China as well as lower data center sales. The CEO said the fourth quarter was "an extraordinary, unusually turbulent and disappointing quarter."

PG&E (PCG  ) shares traded in another volatile range today as the stock was halted three different times on a report from Bloomberg that an investor group offered a $4 billion plan to help the utility avoid bankruptcy.