128.27 +0.14 (0.11%)
After hours: 6:44PM EDT
|Bid||128.15 x 1000|
|Ask||128.06 x 1100|
|Day's Range||126.47 - 129.33|
|52 Week Range||87.50 - 150.55|
|Beta (5Y Monthly)||1.08|
|PE Ratio (TTM)||13.54|
|Forward Dividend & Yield||4.12 (3.24%)|
|Ex-Dividend Date||Jul. 17, 2020|
|1y Target Est||N/A|
Shares in machinery equipment company Caterpillar (NYSE: CAT) fell 14.3% in the first half of 2020 according to data provided by S&P Global Market Intelligence. Caterpillar started the year with its retail sales growth in negative territory. Meanwhile, an ongoing recovery in mining commodity and energy prices was seen as supporting a long-cycle recovery in Caterpillar's sales of mining and oil and gas equipment.
(Bloomberg Opinion) -- As a diplomatic tit-for-tat escalates between Washington and Beijing, millions of Chinese investors — defiant and patriotic — are once again engineering a fast and furious bull market on their home turf. The theme? Self-reliance.Two years ago, when the trade war first hit, China’s $8.5 trillion stock market sank into one of its deepest bear episodes, as worries about the economic damage of decoupling took root. This time, tension with the U.S. hasn't even made a dent. Rather, mainland shares are on fire. The benchmark CSI 300 Index has rallied 14% this year, to trade at a five-year high. The S&P 500 Index, by comparison, is still in the red. Daily trading volume has exceeded 1 trillion yuan ($142 billion) for three consecutive trading days. The latest frenzy began right after Beijing imposed its national security law on Hong Kong, despite U.S. opposition. Now, investors have renewed their faith that China is finally recognizing the importance of self-sufficiency. Bullish sell-side analysts are tossing around buzz words like national champions, import substitutes and capital market reforms; ultimately, these boil down the idea that turning inward is good for stocks. There are many examples. Consider Shanghai-based Semiconductor Manufacturing International Corp., a chip foundry that counts Huawei Technologies Co. as its largest client. Rather than languishing as Huawei gets boxed out of U.S. technology, SMIC’s Hong Kong-listed shares are up over 200% this year.On the financing front, SMIC is behaving every bit like a national champion already. On May 15, the day Huawei got slapped with further sanctions, the state-owned China Integrated Circuit Industry Investment Fund, which held close to 20% of SMIC as of December 2019, said it would co-invest about $2.5 billion into one of its wafer plants. Meanwhile, securities regulators have fast-tracked the company’s plans to raise as much as $7.5 billion in Shanghai, the largest mainland initial public offering in a decade. Beijing is well aware that chip manufacturing is a capital-intensive business, and it must provide financial support as SMIC races to catch up on technology. In the industrial space, global supply-chain disruption is already benefiting Chinese players. For instance, Sany Heavy Industry Co., China’s largest excavator maker, has seen its domestic market share jump to 27% from 8% in 2010, at the expense of foreign brands, data provided by HSBC Holdings Plc show. No surprise, Sany’s stock is up 24% this year, while Caterpillar Inc., whose mainland market share shrank to 11% from 14% in 2016, is down 13.5%. Jiangsu Hengli Hydraulic Co., a large manufacturer, tells a similar story. It’s up 55% this year. Washington’s attempt to block mainland businesses’ access to U.S. money — from the delisting of Chinese American depositary receipts in New York, to forbidding federal pension funds from investing in mainland companies — is only forcing Beijing to speed up its capital markets reform. Regulators are already rewriting equity financing rules, including the launch of new registration-based IPOs, and opening new funding venues for young startups. As a result, we can expect China’s stock market to grow to 100% of its gross domestic product in the next five to 10 years, from 60% now, estimates CICC Research.When it comes to stock investing, China and the U.S. face the same set of problems. A slowing economy inevitably eats into corporate earnings growth, narrowing any justification for a further bull run.But President Donald Trump is giving China’s stock market a second wind. Huawei may prefer chips made by Taiwan Semiconductor Manufacturing Co. — after the U.S. sanctions, though, it may have no choice but hold its nose and buy domestic. Meanwhile, industry consolidation, which benefits domestic firms, is only accelerating now that Beijing is openly supporting its national champions. Trump is always looking at the stock market for validation. This time, he’s looking at the wrong one.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Caterpillar (CAT) closed the most recent trading day at $126.50, moving +1% from the previous trading session.
U.S. companies' borrowings for capital investments fell about 26% in May from a year earlier, as businesses put spending on hold amid the coronavirus crisis, the Equipment Leasing and Finance Association (ELFA) said on Wednesday. "The downturn in the economy precipitated by the COVID-19 pandemic crisis is responsible for new business softening in the equipment finance space during the month of May," ELFA Chief Executive Officer Ralph Petta said. Washington-based ELFA, which reports economic activity for the nearly $1-trillion equipment finance sector, said credit approvals totaled 68.1% in May, down from 71.7% in April.
As markets begin to regain confidence, some companies that have taken some lumps from the coronavirus have started to recover. Managing Partner at Polaris Greystone Financial Group Jeff Powell joins The Final Round panel to break down why investors should shift to value stocks and move away from growth stocks
With Caterpillar's (CAT) retail sales growth in the red for six consecutive months, we suggest investors to add these four industrial stocks with positive growth projections to their portfolio.
U.S. stocks jumped on Tuesday after a record rise in May retail sales revived hopes of a swift post-pandemic economic rebound, with sentiment also lifted by data showing reduced COVID-19 death rates in a trial of a generic steroid drug. A Commerce Department report showed overall retail receipts rose 17.7% last month as Americans resumed spending after weeks of lockdown, although the rebound retraces only a fraction of the historic drops in March and April. Results from a UK-led trial showed giving low doses of the generic steroid drug dexamethasone to patients admitted to hospital with COVID-19 reduced death rates by around a third among those with the most severe cases of infection.
Caterpillar's (CAT) global retail sales have been in the negative territory for six straight months amid a weak manufacturing backdrop, coronavirus-induced crisis and oil price rout.
Weak demand for Caterpillar's equipment continued into May, and Microsoft's decision on facial recognition software irked the president.
(Bloomberg) -- Caterpillar Inc.’s machinery sales dropped by the most in 10 years last month in a sign of a deepening slump in its Americas businesses, where the company has extended plant shutdowns.Retail receipts in North America fell 36% on a rolling three-month basis, the most since January 2010, the company said in a government filing Friday. Sales in Latin America had the biggest decline since December 2016. Overall global sales dropped by the most since early 2010.The figures underscore concerns over prospects for a halting recovery at the heavy-equipment maker after coronavirus shutdowns dented the profit outlooks for miners and construction companies. The data comes on the heels of a report that the Deerfield, Illinois-based company is keeping some of its plants across North and South America shut for longer than expected.BMO Capital Markets analyst Joel Tiss earlier downgraded Caterpillar’s stock to the equivalent of a hold, citing a “catatonic recovery.” Near-term recovery of the company’s end markets will be challenged by customers’ budgetary constraints and stretched government finances, Tiss said.“These factors will likely overwhelm the myriad internal improvements occurring at the company, at least for the next few years,” Tiss said in the note.Chief Executive Officer Jim Umpleby took the helm at the start of 2017 with a focus on boosting efficiency and profit margins, and expanding services to help offset the traditionally cyclical nature of the bellwether producer’s markets. In an earnings call in April, Umpleby departed from his normally staid commentary to warn analysts of a “severe and chaotic” impact from the crisis.Caterpillar’s stock is down about 16% this year. Shares rose more than 2% in New York on Friday morning as the broader equity markets advanced. For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Williams-Sonoma, Caterpillar, JPMorgan, Goldman Sachs and PNC Financial highlighted as Zacks Bull and Bear of the Day
(Bloomberg) -- Caterpillar Inc. is keeping some of its plants shut for longer than expected with demand languishing, in a sign that the economic recovery is progressing slowly.Among Caterpillar’s operations across the Americas, its Curitiba Brazil and Campo Largo BCP Brazil plants are idled until the middle of June, while parts of its Piracicaba Brazil facilities aren’t slated to reopen until June 30, according to a document seen by Bloomberg. Additionally, the company had more than 10 facilities shuttered at some point during May, the document shows.The shutdowns give a peek inside the impact the global coronavirus pandemic is having on the company, considered a bellwether for parts of the economy. Caterpillar’s plants are typically operating at this time of year, according to a person with direct knowledge of the operations who asked not to be identified because the information isn’t public. The second quarter traditionally is Caterpillar’s highest factory output as it ramps up for seasonal demand.“It’s reasonable to assume that they’re limiting their production schedules to align demand that’s still very muted,” Matt Arnold, an analyst at Edward Jones & Co., said in a telephone interview. “In general, we know that demand across construction and mining markets markets and of course energy is still in a depressed state and as a result they’re going to have to have production schedules that are kind of aligned with that.”Facilities ShutMany of the facilities being idled are for two weeks or longer, according to the document. Curitiba is shut from June 1 to June 15, Piracicaba’s motor grader line is down from May 18 to June 30 while the medium wheel loader, medium track-type tractor and soil asphalt and pneumatic compactor line is idled from June 1 to June 30. The North Little Rock facility in Arkansas was closed from May 18 until June 8, and the BCP Clayton and BCP Stanford facilities were shut from May 18 to May 26.Caterpillar spokeswoman Kate Kenny referred Bloomberg to the company’s previous public statements.Chief Executive Officer Jim Umpleby in April departed from his normally staid commentary on earnings calls to warn analysts of a “severe and chaotic” impact from the crisis. CFO Andrew Bonfield at the time made it clear that the company isn’t necessarily saying the second quarter for sure would be the trough, saying it is “going to take a little while to recover.”During the same call with analysts, Umpleby said it had suspended operations at “certain” facilities due to supply-chain constraints, weak customer demand and government mandates -- referring to the lockdowns. He also warned that the company sometimes has facility closures to align production with customer demand, even when the world isn’t going through a pandemic.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
S&P Chief Economist Says $2.1 Trillion More Spending Ought to Do The Trick When is there ever too much government spending? According to S&P chief economist Beth Ann Bovino, it looks like never, because she wants $2.1 trillion more in government spending, despite multitrillion dollar deficits already that only look set to get worse. She […]The post Market Morning: S&P Says More Spending, Hong Kong Ping Pong, Riots, Food Prices Soar appeared first on Market Exclusive.
Caterpillar (CAT) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.