Caterpillar up on belief demand for equipment will rise
Caterpillar (NYSE:CAT) was the top performer of the Dow on Tuesday, increasing to $62.41 and growing in after hours trading as well. For the day Caterpillar ended the session ahead $2.46.
Much of the upward movement in Caterpillar was based on the belief were are actually in an economic recovery, something yet to be proven, and more of wishful thinking than a reality.
This is important because it suggests demand for industrial equipment will rise, even though that hasn't happened much if any, beyond replenishment.
We have yet to see much in sales related to growth, and until that happens these share price movements are going to swing wildly.
No comments:
Post a Comment