Last Week’s Big Dow Losers: Exxon Mobil Corporation (XOM), Caterpillar Inc. (CAT)

The Dow’s biggest loser this week was Caterpillar Inc. (NYSE:CAT), which lost 0.93% of its value. All week, shareholders couldn’t seem to get over the poor housing news that came from China on Monday. In an attempt to slow the country’s housing market, the Chinese government announced a few new requirements and laws. Homeowners wanting to purchase a second property in the country will now be required to provide a larger down payment than before and must be willing to pay a higher interest rate on the remaining loan than what the current market rate would be. If the property is sold, profits will be taxed at a new, higher rate.

Currently, Caterpillar Inc. (NYSE:CAT) receives only about 3% of its revenue from China, so any downturn in the country’s housing market shouldn’t have a major effect on profits. But with such a small amount of revenue coming from China, Caterpillar Inc. (NYSE:CAT) certainly has room to grow, which could be slowed if the housing market cools off in that part of the world.

The article Last Week’s Big Dow Losers originally appeared on Fool.com and is written by Matt Thalman.

Check back Monday through Friday as Matt explains what caused the Dow’s winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter @mthalman5513. Fool contributor Matt Thalman and The Motley Fool own shares of Bank of America.

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