Caterpillar Gears Up to Lobby In Support of Export-Import Bank

Caterpillar isn't the only industrial juggernaut hoping the Export-Import Bank is reauthorized, Boeing and GE stand to lose export business as well if it dies.

Jun 26, 2014 at 3:00PM
Longview

The Dow Jones Industrial Average (DJINDICES:^DJI) was trading 29 points lower, or 0.17%, in midafternoon after a Federal Reserve official commented that interest rate increases should take place by the close of first-quarter 2015. St. Louis Federal Reserve Bank President James Bullard said the U.S. economy is closer to normal than most figure, with the jobless rate set to fall below 6% and inflation rising to 2% later in 2014, but he doesn't believe a potential uptick in interest rates is priced into the markets. While that could help explain today's small pullback, long-term investors should cheer the news that the U.S. economy is continuing to gain strength, albeit gradually.

With that in mind, here are a couple companies making headlines in the markets today.

G

Caterpillar needs all the sales aid it can get. Source: Caterpillar.

Inside the Dow, Caterpillar (NYSE:CAT) is preparing to unleash its lobbying machine to help save the Export-Import Bank from looming death by non-reauthorization later this year. The Ex-Im Bank's primary purpose is to authorize loans, credits, and guarantees to foreign buyers. If the Ex-Im Bank were to meet its demise, foreign companies that partially relied on its subsidies might not purchase American goods. Caterpillar says it could cost the U.S. economy billions of dollars in exports lost to Japanese, Chinese, and other international companies.

"There's a sense of urgency," Kathryn Karel, Caterpillar's vice president of law and public policy, told The Wall Street Journal. "We need to get some information in front of [Congress] to educate them on the trickle down effects,". 

Caterpillar isn't in this fight alone, as Dow index juggernauts such as Boeing (NYSE:BA) and General Electric also stand to lose potential export business without the Ex-Im Bank helping to facilitate trade. According to an analysis by George Mason University, the Ex-Im Bank helped support $8.3 billion in Boeing's sales in 2013 -- nearly 10% of its overall revenue for the year.

The Ex-Im Bank also helps smaller companies and claims that it supported 200,00 American jobs last year by financing or guaranteeing $37.4 billion of U.S. exports.

The Sept. 30 reauthorization deadline is definitely something for Caterpillar, Boeing, and GE investors to keep an eye on. Throughout the bank's history, 14 of 16 reauthorizations have passed by unanimous consent or voice vote in at least one chamber of Congress, according to Business Insider.

In industrial news outside the Dow, General Motors (NYSE:GM) could be gearing up for another round of recalls after the automaker ordered dealers to stop selling 2013 and 2014 models of its Chevrolet Cruze sedan. This recall wouldn't be linked to its ongoing ignition-switch saga; rather, the situation involves air bags made by Japanese supplier Takata, which are already the subject of multiple recalls involving Toyota and Nissan vehicles.

A Cruze recall could inflate General Motors' sky-high recall numbers for 2014, which have already topped 17.7 million vehicles in the U.S. and more than 20 million in North America. Chevrolet's Cruze is GM's best-selling car, with more than 32,000 sold last month alone and nearly 120,000 through the first five months of this year.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Daniel Miller owns shares of General Motors. The Motley Fool recommends General Motors. 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