The Rising Influence of Rising Affluence

[DewDiligence]

CAT -3% on 1Q19 China weakness:

https://finance.yahoo.com/news/caterpillar-raises-2019-profit-outlook-114447020.html

Caterpillar Inc spooked investors for a second straight quarter on Wednesday with a 4 percent drop in Asia-Pacific construction equipment sales that pointed to more weakness in China…which accounts for up to 10 percent of company sales [in the construction division].

…The company also raised its full-year profit forecast as it booked a tax gain in the first quarter stemming from President Donald Trump's tax reforms. The company said it now expects 2019 profit of $12.06 per share to $13.06 per share, compared with $11.75 to $12.75 per share forecast earlier. (Excluding tax gains the company maintained its 2019 earnings targets.)

The stock initially rose today, until investors realized the strong 1Q19 GAAP results were due to a non-recurring tax gain.