Caterpillar Stock Jumps, Lifting Dow, as Company Sees ‘Broadening Momentum’

Key Takeaways

• Caterpillar’s second-quarter profit and revenue far exceeded analysts’ expectations, driven by record sales above $20 billion.

• The company’s shares surged in early trading, boosting the Dow.

Caterpillar’s blockbuster second quarter is sending its stock—and the Dow Jones Industrial Average—sharply higher this morning.

Shares of Caterpillar (CAT) are up 8% in early trading Tuesday after the company known for its construction equipment reported profit and revenue far above analysts’ estimates. The Irving, Texas-based firm posted adjusted earnings of $8.17 per share on revenue that increased 24% year-over-year to a record $20.54 billion. Analysts surveyed by Visible Alpha had expected $6.10 per share and $18.95 billion, respectively.

Caterpillar’s construction and power generation equipment are in high demand as big tech companies build new data centers, and chief executive Joe Creed said the firm’s “strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments.”

The Dow jumped 1% in early trading. Since it is a price-weighted index, the blue-chip index gives more influence to higher-priced stocks, and Caterpillar shares entered Tuesday at just over $830 apiece.With today’s early surge to about $895, Caterpillar shares, which are up nearly 60% this year, added about 385 points to the Dow’s gain.

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