1 Industrial Giant Hauling the Dow Higher Today and 1 on Deck for Tomorrow

Boeing is leading the Dow higher today after releasing its first-quarter results, but don't expect a similar story tomorrow from Caterpillar.

Apr 23, 2014 at 3:00PM
Longview

The Dow Jones Industrial Average (DJINDICES:^DJI) was trading a mere eight points lower, or 0.05%, by midafternoon following the unwelcome news that new-home sales took a dive in March. Sales plunged 14.5% to a 384,000 annualized pace, which was the lowest level in eight months and lower than any forecast of economists surveyed by Bloomberg.

"It's the reduction in affordability, the lack of inventory, also weak growth in median household income -- all these are contributing to the sluggish recovery in housing," said Ryan Sweet, a senior economist at Moody's Analytics, according to Bloomberg. "It's going to raise concerns about the strength of the housing recovery, but it's too early to be too worried." 

With that news in mind, here is one company hauling the Dow higher today after its earnings release, along with one on deck for tomorrow.

K

787 production bottlenecks in Q1 didn't hold back profits. Source: Boeing

Boeing (NYSE:BA) is the Dow's biggest gainer today by a wide margin, trading nearly 2% higher after releasing its first-quarter results that pleased investors. Boeing's core earnings per share, which excludes certain pension costs and post-retirement expenses, checked in at $1.76. That was much higher than analyst expectations, though it should be noted that those estimates had been reduced throughout the quarter. 

Higher commercial deliveries drove revenue up 8% to $20.5 billion, while Boeing's operating cash flow increased significantly to $1.1 billion. The aviation giant also posted a 12% increase in core operating earnings to $2.1 billion as operating margin increased 30 basis points over last year's first quarter. Boeing also continued to return value to shareholders by spending $2.5 billion to repurchase 19.4 million shares during the quarter.

"Our outlook for the full year remains positive on the strength of demand for our fuel-efficient new commercial airplanes, our solid position in global defense, space and security markets, and our enterprise focus on meeting customer commitments, improving productivity and profitably delivering the growth in our sizable backlog," Boeing Chairman and Chief Executive Officer Jim McNerney said in a press release.

Another Dow industrial heavyweight, Caterpillar (NYSE:CAT), will release its first-quarter results Thursday. Today, the heavy-equipment manufacturer released unaudited dealer sales data that showed further deterioration in global demand for its mining equipment.

Sales of Caterpillar's heavy equipment fell 12% year over year in March, which only added to the 8% loss from the first two months of 2014. Sales of the company's high-margin mining equipment was especially weak, falling 46% in March after a 37% tumble during the first two months of the year. 

Investors aren't expecting a positive surprise from Caterpillar tomorrow, but this essentially confirmed the company's results will be a mixed bag, at best, with little upside early in 2014. 

3 stock picks to ride America's energy bonanza
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Daniel Miller has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers