Caterpillar leads gains in large-cap industrials during busy earnings week
Caterpillar (NYSE:CAT) rose more than 15% percent for the week ended Oct. 28, performing the best among large-cap industrial companies – many of which reported earnings.
Caterpillar said its earnings had reached a record during the third quarter on strong demand for its earth-moving equipment and solid pricing power.
But not everyone was convinced about the company’s potential for more appreciation. Analysts at Deutsche Bank today downgraded Caterpillar because of several risks, including the possibility of a global recession.
Honeywell International (HON) rose 12% for the week, helped by a Q3 earnings beat and raised guidance for the remainder of the year.
General Electric (GE) advanced 7.6% in a week that included a Q3 EPS report that missed Wall Street's estimates. The company also described plans to cut expenses in its renewable-energy unit, whose losses partly counteracted gains in its aerospace business.
Raytheon Technologies (RTX) rose 7.4% with a Q3 earnings beat that indicated its commercial aviation revenue offset weakness in defense and space.
The SPDR Industrials ETF (NYSEARCA:XLI), whose holdings include large-cap industrial stocks, increased 6.7% during the week for the highest closing price since mid-September.
| Company (Ticker) | Oct. 28 closing price | 5-day change |
| Boeing (BA) | $143.84 | 1.8% |
| Caterpillar (CAT) | $219.34 | 15.3% |
| Deere (DE) | $396.85 | 3.6% |
| General Electric (GE) | $78.33 | 7.6% |
| Honeywell International (HON) | $204.93 | 12.1% |
| Lockheed Martin (LMT) | $484.77 | 6.6% |
| Northrop Grumman (NOC) | $548.11 | 4.9% |
| Raytheon Technologies (RTX) | $95.08 | 7.4% |
| Union Pacific (UNP) | $198.65 | 4.3% |
| United Parcel Service (UPS) | $167.17 | 1.0% |
| Industrial Select Sector SPDR ETF (XLI) | $94.62 | 6.7% |