Fed minutes say "most participants" saw the cut "as part of a recalibration" in response to changing conditions.The Fedread more
Federal Reserve members worried over future growth are highly concerned about the U.S.-China tariff battleThe Fedread more
President Trump and Apple CEO Tim Cook have had a rocky relationship in recent years, but Trump is now complimenting the executive publicly.Technologyread more
Corporate debt recently passed the $1 trillion mark in a continuing sign of global financial displacement.Marketsread more
"Federal debt, which is already high by historical standards, is on an unsustainable course," CBO director Phillip Swagel said in the report.Politicsread more
The president's remark followed a string of criticisms aimed at his predecessors, whom he claimed had ignored China's alleged malpractice on trade.Politicsread more
President Trump liked Germany's sale of no-interest, 30-year bonds Wednesday, but investors weren't so eager to buy them.Market Insiderread more
SunTrust Robinson Humphrey analysts said in a research note the "Off-Facebook Activity" feature "appears to fall somewhat short of the original pledge by CEO Zuckerberg of...Technologyread more
"If you look at the market over the past week, stocks don't need any help. They are roaring ahead, without the Fed doing anything," says the longtime market strategist.Marketsread more
Target CEO Brian Cornell still thinks the U.S. consumer is strong and spending. Target's latest quarterly results showed the big-box retailer is benefiting from that.Retailread more
Stocks rose on Wednesday as strong quarterly results from retailers such as Target and Lowe's lifted investor sentiment.US Marketsread more
Deutsche Bank has told clients that Caterpillar is likely to see an uptick in revenue and share price as mining and oil companies look to renew aging equipment.
Resuming coverage on the Deerfield, Illinois-based company with a buy rating, analyst Chad Dillard said the machinery manufacturer still has years of strong income ahead.
"Caterpillar is earlier in its cycle than the market gives credit and our preferred way to play the early stage equipment replacement cycle," Dillard said in a note Tuesday. "Mining and oil & gas producers have systematically underinvested in equipment and are in the early stages of replacing the equipment bought during the height of the commodity super cycle."
Dillard estimates the results could be so good that mining and oil and gas sales could grow at 30 percent and 10 percent, respectively, each year for the next few years.
Caterpillar should also be more insulated than peers from any softness in the U.S. construction industry, with only 20 percent of income coming from equipment sales in the sector, the analyst added.
On a valuation basis, Dillard said Caterpillar trades at a 45 percent discount to the S&P 500, its largest discount in almost 20 years.
Despite the several bullish calls on Wall Street, the Dow Jones Industrial Average component has underperformed both the blue-chip index and in 2018, down more than 12 percent since January.
Shares rose 1 percent Wednesday.
The Trump administration's prolonged trade war and rising costs due to tariffs is likely weighing on investor sentiment.
Though the company reported record second-quarter profit per share in its most recent financial update, it added that it expects an increase of $100 million to $200 million in its material costs in the second half of the year. Caterpillar said it plans to offset the rising costs with price hikes of its own.
The revelation came just after the U.S. slapped tariffs on $34 billion of Chinese goods in July. The U.S. also implemented tariffs on steel and aluminum imports from Mexico, Canada and the European Union.