Machinery sales from Caterpillar Inc. emphasized North America’s economic slowdown. Caterpillar’s 12-month forecast is down about 18% from the same time a year ago.
The International Monetary Fund cited a broad deceleration across the world’s largest economies as trade talks interrupt domestic growth. Their forecast predicted the weakest global economic growth in almost two years.
Caterpillar was counting on dealers to buy their increased machine and engine inventories earlier this year. Unfortunately, brokerage analysts said they would need more production cuts instead.
Worldwide machinery sales grew at the slowest pace. Sales in North America expanded the weakest rate in two years in August.
The machinery manufacturer declined as far as 0.46% at 131.64.
More equipment was available than sold for the past 10 months. Machine and engine inventories increased about $500 million from June to August.
They increased the same inventories by $100 at the same period last year.
On a positive note, several US stocks in focus jumped up. Dow Jones Industrial Average rose around 4% in 2019.
US Future Report Today
While Caterpillar tumbles, other US Futures gained in today’s sessions.
Procter & Gamble’s stock gained 4.5% after its earnings beat expectations. Investors look forward to its premium beauty brands. The consumer goods corporation also raised its full-year forecasts.
Biogen stepped up 0.2% upgraded from neutral to overweight at Atlantic Equities for its aducanumab drug studies against Alzheimer’s.
Motorcycle manufacturer Harley-Davidson stock upped 7.1% after they exceeded expected earnings despite slower US sales and higher European tariffs.
In the banking sector, the Bank of America stock nudged up 0.2% when it upgraded from neutral to overweight. The increase was from the bank’s deposit growth in the third quarter.
Boeing Co surged as far as 2.19% at 337.81. Reports claim the airline made progress toward getting its controversial 737 MAX on the air again.
Toy manufacturer Hasbro, however, tumbled 13.8% at increased tariff costs for Chinese toys.