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On Tuesday the Fast pros spend a great deal of time parsing through a warning issued by Cummins.
They say there's more than meets the eye here, and none of it is good.Cummins, an engine maker, cut its full-year sales forecast on Tuesday, citing weaker U.S. orders and softer demand in emerging markets.Of course, that alone is bad; it suggests a global slowdown has claimed another victim.However, the Fast Money traders are focussed on something else in the warning - something they say is far more problematic – especially ahead of earnings season.The company cited the stronger dollar as a negative catalyst and a cause of weakness. (If that sounds counter-intuitive, a stronger dollar is bearish because as a company repatriates profits from overseas, it must convert the money from another currency.)
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“This is bad,” says pro trader Karen Finerman, president of Metropolitan Capital. As earnings season kicks into gear, she thinks many other companies may be facing a similar headwind.
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