Caterpillar leads weekly gains in large-cap industrials
Jun. 02, 2023 5:07 PM ETCaterpillar Inc. (CAT)GE, XLI, BA, UPS, ADP, MMM, LMT, UNP, DE, HON, SP500, DJI, RTXBy: Rob Williams NY, SA News Editor4 Comments
Seeking Alpha
Caterpillar’s (NYSE:CAT) stock this week rose 7% for the biggest increase among large-cap industrial stocks. Much of the week’s rally was concentrated in Friday’s trading session, with Caterpillar (CAT) rising more than 8% for its best day since March 2020.
The monthly jobs report showed that employers hired more workers in May than estimated by Wall Street economists. A healthy labor market is one sign that the U.S. economy continues to grow. Senate passage of a deal to raise the debt ceiling late Thursday also helped to lift sentiment.
The Industrial Select Sector SPDR ETF (XLI), whose holdings include some of the largest U.S. companies in the sector, rose 2.7% for the week.
The Standard & Poor’s 500 stock index (SP500) rose 1.8%. The Dow Jones Industrial Average (DJI) rose 2%, with particular strength in Caterpillar (CAT) and 3M (MMM). The Nasdaq Composite (COMP.IND) rose 2% for the week.
While some parts of the U.S. economy have shown signs of slowing, Caterpillar (CAT) has seen strong demand for heavy machinery as companies build more factories on U.S. soil. The federal government has made semiconductors and electric-vehicle batteries a national priority, along with energy-efficiency.
“Nonresidential is very strong, and a lot of that, of course, is driven by the pieces of legislation that have passed over the last few years,” Caterpillar (CAT) Chairman and CEO Jim Umpleby said Thursday at the Bernstein annual strategic decisions conference in New York. “We're already seeing some of that stimulus manifest itself into orders for us, particularly from the states, but as I'm sure you all know, permitting takes some time. That stimulus will result in improved business for us over time.”
(con't)
AI
Market Data 
Markets 
