Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3 Stocks Behind the Dow's New 5-Year High

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Sentiment in the stock market can turn on a dime, and investors saw another great example of that in this week's trading action. After a 200-plus point decline in the Dow Jones Industrials (DJINDICES: ^DJI  ) on Monday, investors turned their attention to more favorable economic data as well as reacting favorably to reassurances from Federal Reserve Chair Ben Bernanke that the Fed's quantitative easing program was in no danger of ending anytime soon. All it took was two days of triple-digit advances, and now the Dow stands once again at another five-year high, less than 100 points below its closing record after gaining 175 points today.

Caterpillar (NYSE: CAT  ) was one of the biggest gainers in the Dow, rising 2.5% both on general optimism about the economy and good news from within the industry. Rival Joy Global (NYSE: JOY  ) reported favorable earnings in its report this morning, and even though it also saw orders fall for the fourth straight quarter, this time by 29%, the stock climbed 6%. Caterpillar is less dependent on the coal-mining industry than Joy Global is, and so Caterpillar's prospects should be less affected by continued low natural gas prices and their impact on coal-mining profitability.

Elsewhere, MAKO Surgical (UNKNOWN: MAKO.DL  ) soared 10% after announcing earnings last night. The surgical-device maker gave aggressive guidance for system sales growth this year, projecting growth from the 45 units sold in 2012 to between 56 and 62 units this year. Although projected procedure growth of 32% to 42% is below 2012's growth rate, it was enough to make investors satisfied with the results. If MAKO can deliver on its estimates, it stands to recover a decent amount of the ground its shares lost last year.

Finally, Dollar Tree (NASDAQ: DLTR  ) also got an earnings bump, rising more than 10% as it reported that its net income rose almost 22% on a better-than-15% gain in revenue. Even though the company's guidance for 2013 was on the low side of Wall Street expectations, investors may have feared even worse results given the disproportionate impact of higher payroll taxes on its customer base.

Caterpillar did well today, but can it keep investors happy? Find out in our premium research report on the equipment maker, in which we examine the company's products, service network, and brand strength to conclude whether Caterpillar deserves to be in your portfolio. Don't wait another minute before you get the information you need to make a better investing decision. Just click here to access your report now.

Read/Post Comments (1) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2283665, ~/Articles/ArticleHandler.aspx, 9/26/2016 3:40:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,110.03 -151.42 -0.83%
S&P 500 2,148.79 -15.90 -0.73%
NASD 5,260.89 -44.86 -0.85%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 3:24 PM
^DJI $18110.51 Down -150.94 -0.83%
CAT $82.45 Up +0.01 +0.01%
Caterpillar CAPS Rating: ***
DLTR $80.17 Up +0.08 +0.10%
Dollar Tree Stores CAPS Rating: ***
JOY $27.53 Down -0.06 -0.22%
Joy Global CAPS Rating: ***
MAKO.DL $0.00 Down +0.00 +0.00%
MAKO Surgical CAPS Rating: ****