2 Industrial Juggernauts Surprise Wall Street Today

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) was trading down 10 points by midafternoon in a day of repeated rises and falls. The latest drop came even after some strong earnings reports and the Commerce Department's announcement that durable goods orders rose 2.6% last month. That was the biggest jump since November and was driven by a surge in aircraft orders. However, excluding the volatile transportation sector, orders still rose 2% -- the biggest increase in over a year. With that in mind, here are some companies moving in the market today.

Inside the Dow, Caterpillar (NYSE: CAT  )  was trading nearly 2% higher after the heavy-equipment manufacturer surprised Wall Street with better than expected first-quarter results. Caterpillar reported earnings per share of $1.44, an increase from $1.31 per share from last year's first quarter. Excluding restructuring costs, Caterpillar's earnings per share was $1.61.

Caterpillar's results were clearly driven by its construction industries segment. Global sales of the company's construction machinery pushed 20% higher and earnings more than tripled.

"Residential construction has been improving and now we are getting a kick from commercial construction in North America," said Karen Ubelhart, a Bloomberg Industries machinery analyst. "Both the dealers and Caterpillar are saying, 'Things have turned and we want to be ready for it.'"

Despite the results, Caterpillar expressed caution that 2014 could be a challenging year, with sales still far below the company's peak in 2012. Management also expressed concern about the ongoing tensions between Ukraine and Russia, which could hinder sales in the region, as well as continued weakness in China.

GM's full size trucks boosted transaction prices. Source: General Motors.

Outside the Dow, General Motors (NYSE: GM  ) also posted better than expected results despite ballooning costs from its massive recalls. General Motors took a $1.3 billion pretax charge for costs associated with recalling nearly 7 million vehicles, as well as a $0.4 billion loss from special items. Those charges combined to bring General Motors' earnings per share down a staggering $0.71 per share -- leaving a net income attributable to common shareholders of $0.06 per share.

Despite the costly recall, there were a couple of positive takeaways for investors in the first quarter. General Motors posted an all-time high quarter for sales in China and also boasted record high average transaction prices in North America, largely due to its newly designed full-size trucks.

"Clearly the headline results are overshadowed by the recall campaign charges -- $1.3 billion -- but when you look underneath that we had strong performance across the board," Chief Financial Officer Chuck Stevens told reporters at GM's headquarters in Detroit, according to Bloomberg.

Are you ready to profit from this $14.4 trillion revolution?
Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.

Read/Post Comments (0) | Recommend This Article (2)

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.

Be the first one to comment on this article.

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: 2928830, ~/Articles/ArticleHandler.aspx, 9/3/2015 5:20:23 AM

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...

Daniel Miller

As a Motley Fool Industrial Specialist, I use my marketing and business background in the automotive industry to evaluate major automakers and other large industrial corporations. Follow me on twitter for tweets about stocks, cars, sports, and anything I find amusing.

Today's Market

updated 8 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

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

9/2/2015 4:36 PM
^DJI $16351.38 Up +293.03 +1.82%
CAT $76.10 Up +1.20 +1.60%
Caterpillar, Inc. CAPS Rating: ***
GM $29.21 Up +0.57 +1.99%
General Motors CAPS Rating: ***