Industrial stocks are showing strength.
The sector has surged more than 9 percent this year — the second-best performer behind only energy — and is on pace for its best month in more than two years.
Key player Boeing soared more than 6 percent in premarket trading on Wednesday after posting earnings that easily topped analyst estimates. But this followed a disappointing quarter for Caterpillar. On Tuesday, two market watchers advised investors to hold off buying the sector until the noise settles and there's a better read on the sector as a whole.
"I don't think it's a buy anything in the sector setup, but I do believe that this week of earnings gives companies the way to restructure guidance because everything went bad in the fourth quarter," Michael Bapis said on CNBC's "Trading Nation."
Bapis, managing director of Vios Advisors at Rockefeller Capital Management, said a favorable regulatory environment for multinational companies could push these stocks higher, but that investors should wait to "see what earnings look like this week" and "re-evaluate on Monday."