The Boeing Company and Caterpillar Inc. Receive Good News

Here are two industrial giants receiving positive news today.

Jul 9, 2014 at 3:00PM

The Dow Jones Industrial Average (DJINDICES:^DJI) was trading 79 points higher, or 0.47%, in midafternoon as some investors perhaps gained optimism with the opening of earnings season. Aluminum giant Alcoa, a former Dow component, yesterday reported adjusted second-quarter earnings and revenue that topped Wall Street expectations. Though Alcoa isn't considered a market-moving company of any kind, it was a positive development after two days of market losses.

Thomson Reuters expects profits of S&P 500 companies to grow by 6.2% in the second quarter on a 3% rise in revenue. Investors and analysts across the United States will be eyeing earnings season to see if the economy has indeed recovered from this year's harsh winter months that slowed consumer spending. 

With that in mind, here are some major companies making headlines in the markets today.

Boeing (NYSE:BA) investors breathed a small sigh of relief today when the aviation manufacturer's deal with Dubai-based airline Emirates was officially finalized. The Emirates order for 150 Boeing 777X jets valued at $56 billion was a commitment from last November's Dubai Airshow.

While there was no reason for the airplane manufacturer to doubt the commitment, some investors were likely on edge after Emirates just weeks ago canceled a $16 billion order for 70 aircraft with Boeing's rival Airbus.

Emirates' order also includes purchase rights for an additional 50 airplanes, which could increase the value of the deal to $75 billion, at list prices. With this order in the books, investors and Boeing will now look toward to this month's Farnborough International Airshow in the U.K., where billions of dollars' worth of new airplane orders are often announced.

Boeing's massive backlog of orders is valued at roughly $440 billion -- essentially five years' worth of revenue. That revenue transparency is one reason investors are comfortable and optimistic in the company's near-term potential as production and deliveries are accelerated.


Source: Caterpillar.

In other industrial news, Caterpillar (NYSE:CAT) investors may have reason to be optimistic heading into earnings season despite plunging global machine sales. Caterpillar will announce its second-quarter results on July 24, and analysts have become positive on the heavy-machinery manufacturer's chances to beat Wall Street expectations.

Barclays' Andy Kaplowitz recently noted this to investors, according to Barron's: "Despite 2014 consensus EPS slightly above Caterpillar's guidance range, we expect Caterpillar to raise its outlook based on a stronger oil and gas market than expected, some improvement in global construction equipment markets, and significant margin leverage as markets begin to recover, although we do expect mining to remain a modest headwind on results."

While Caterpillar is relying on strength in its North American business, the company will need its Asian segment to turn around after machine sales spiraled out of control, due to a weak mining environment, if its stock price rally is to continue higher. 

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 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information