Why Caterpillar, SUPERVALU, and Freeport-McMoRan Jumped Today
Tuesday was a strong day for stocks, and major benchmarks climbed toward record highs by the end of the session. In particular, two favorable earnings reports from major components of the Dow Jones Industrials lifted the venerable average, and broader measures also followed suit on generally upbeat views of the immediate future for the financial markets. A rebound in the oil also improved the mood of the hard-hit energy sector as investors responded to news that Saudi Arabia would seek to cut exports. Several key companies reported good news today, and Caterpillar (NYSE: CAT), SUPERVALU (NYSE: SVU), and Freeport-McMoRan (NYSE: FCX) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Shares of Caterpillar bulldozed their way upward by 6% in the wake of a strong second-quarter financial report. The maker of heavy industrial and construction equipment said that sales jumped almost 10% to $11.33 billion, and profit climbed by nearly half compared to the year-ago period. Demand for machinery was on the rise, and even though some of the industries that Caterpillar serves are still under pressure, the company said that the construction sector in China and in North American gas compression operations were notable outperformers. Mining and energy companies generally have bounced off their respective lows, and Caterpillar sees favorable trends continuing. The equipment maker raised its outlook for the full 2017 year, including a $3 billion to $4 billion sales boost to a new range of $42 billion to $44 billion. Adjusted profit of $5 per share would be well above the previous guidance's call for $3.75 per share. Given how long Caterpillar shareholders have suffered, investors must be breathing a sigh of relief that times are finally getting better.
Image source: Caterpillar.
Source: Fool.com