Caterpillar (NYSE:CAT) this week rose 6.1% — the fastest gain in nine weeks — to defy a broader decline among the biggest U.S. industrial companies.
Shares in the maker of heavy machinery and construction equipment hit a record high on Tuesday after the company’s Q2 results beat Wall Street estimates. Management provided an optimistic picture for the remainder of the year, saying its adjusted operating profit would be at the high end of its previous guidance. Caterpillar’s (CAT) shares are up 15% so far this year.
The Industrial Select Sector SPDR ETF (NYSEARCA:XLI), whose holdings include some of the biggest U.S. companies in the sector, fell 1.7% for the week ended August 4. United Parcel Service (UPS) led the declines with a 3.7% weekly drop. The Dow Jones Industrial Average (DJI) also slipped 1.1% for the week.
Despite the slide in industrial stocks, the group outperformed the broader market. The Standard & Poor’s 500 stock index (SP500) slumped by 2.3% this week, the biggest weekly decline since the first week of March – when the collapse of two large regional banks chilled the market. The Nasdaq Composite (COMP.IND) slid 2.8% as many tech companies lost value.
Stocks sold off after Fitch downgraded the U.S. credit rating earlier in the week. The monthly jobs report on Friday showed that U.S. employers had reduced hiring, a sign that the economy may be contracting. However, wage growth was solid.
RTX (RTX), formerly known as Raytheon Technologies, fell 3.2% in a second straight week of losses. The aerospace and defense contractor dropped 9.4% last week, which was notable for the company’s disclosure that its Pratt & Whitney unit had recalled some jet engines because of a defect.
Highlights from the Week
Kratos’s stock hits 15-month high after Q2 results beat estimates
Generac’s stock receives twin upgrades to Buy at Janney, Truist after selloff
Airbus’s passenger plane deliveries rise 11% through July
Air Lease sees opportunities for growth if Airbus delays plane deliveries
Spirit AeroSystems downgraded to Neutral at Goldman Sachs
Spirit AeroSystems’ stock falls 27% on dimmer outlook for cash flow
Parsons hits 52-week high after quarterly earnings beat
Caterpillar jumps to record high after Q2 profit beats estimates
General Electric downgraded to Perform at Oppenheimer
Illinois Tool Works falls after Q2 results miss estimates
China said to curb exports of drones on worries about military use