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Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

AHEAD OF THE TAPE: Cat on Hot Tin Roof [Wall Street Journal]

Summary: Although CAT has been an major market mover over the past six years, and analysts expect the company to report a 15% increase in revenue, there is concern that the company might be adversely affected by the housing slowdown and emissions regulations. With projections that the construction equipment company will reveal an over 40% increase in earnings per share, comes the concern that Catepillar might not be able to recoup losses in residential building through commercial projects. In addition, EPA regulations requiring all trucks to have clean-running engines by 2007 has caused a rush of orders that will soon peak and drop off by the deadline. The trucker Con-Way lowered its sales forecast for the remainder of 2006, indicating a slowing down in the industry. However, Catepillar might be protected from some of these challenges, since half of its business is overseas.
Related links: Foolish Forecast: Caterpillar's Claws [Motley Fool] • Why The Pundits Are Wrong On Caterpillar
Potentially impacted stocks and ETFs: Catepillar (NYSE:CAT) • Competitors: CNH Global NV (NYSE:CNH), Volvo AB (VOLV)

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Source: High Expectations and Major Challenges for Caterpillar