By Kate Gibson
In looking at second-quarter earnings season, U.S. stock market
analysts anticipate year-over-year earnings for the industrial
complex to plunge about 43%, with the sector expected to be among
the top four worst performers.
"That low bar that has been set makes it easier for companies
like Caterpillar Inc. and Deere & Co. to beat expectations,"
said Art Hogan, chief market strategist, Jefferies & Co.
On Tuesday, shares of Caterpillar (CAT) were lately up 6.7%
after the heavy equipment maker reported results topping
expectations. .
Deere (DE) gained more than 2%.
And, Caterpillar fronted gains on the Dow Jones Industrial
Average (DJI), which erased a 70-point rise to churn 2.50 points
higher, to 8,850.65. The S&P 500 (SPX) fell 3.96 points to
947.17, while the Nasdaq Composite (RIXF) declined 9.63 points to
1,899.66.
"It's interesting to note that after Caterpillar significantly
beat forecasts, they see full-year sales of $32 to $36 billion
despite a high degree of uncertainty on global economy. They were
able to get there with a combination of cost cutting, by laying off
50,000 people, to get close to demand on products," said Hogan.
Rising about 24% in the last five sessions, shares of Catepillar
are trading near $40, nearly doubling from its March lows but still
off 11.5% year-to-date.