Monday, October 24, 2011

Caterpillar earnings drive markets higher

     Sorry peeps for not posting anything this weekend.  My internet has been going up and down and up and down all weekend long.  It is really starting to piss me off.  Also, I've basically been in a coma the past two days after taking this drug called Seroquel.  Man that stuff really puts my lights out.  Has any of you taken Seroquel before?  Is sleeping for two days in a row normal?  I slept till 1 in the afternoon today and I still feel groggy as hell.  Anyways, I'll be back up and running today and the rest of the week of course and I'll be checking all your blogs!

     Today was a great day in the markets as Caterpillar blew away earnings forecasts, easing fears of a global growth slowdown.  Caterpillar builds backhoes, mining equipment basically all the things needed for construction and mining so it is a good proxy for global growth.  When CAT is doing well, the global economy can't be that bad.

     CAT had record revenues and a 44% rise in quarterly profit easily beating analysts expectations.  Caterpillar's stock jumped 5.6% on the news to over 90 dollars a share after being near 70 just 2 weeks ago.

     It looks like the breakout from last week is continuing and it is okay to buy stocks here.  The DJIA finished 105 points higer and the SNP and NASDAQ rose even more gaining 1.3% and 2.35% respectively. Oil jumped nearly 5% and gold was higher by 1%.

     I think this rally is going to continue until 1270 or 1280 on the SNP as we have some serious upside momentum building and this is the seasonal best period to own stocks.  Let's see what happens.

Disclaimer: Nothing in this blog should be construed as a recommendation to buy or sell any securities! Please do your own due dilligence before buying any stocks or bonds!

21 comments:

  1. Interesting how one can equate the profits of a a major construction equipment company to growth on a global scale. It makes sense.

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  2. This is great news. I'd never heard of CAT before so this blog post proves itself to be educational as always!

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  4. Things continue to look better for that economy!

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  5. oh boy, here we go again, hahaha

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  6. Man, I remember having CAT boots and a hat, I would absolutely not believe it stood for caterpillar :D

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  7. It's good to hear that someone's successful. Especially an American business!!

    also, just wanted to let you know that your blog is the HOLY BLOG OF THE WEEK over at alunaticpope.com

    http://www.alunaticpope.com/p/my-favorite-blogs.html

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  8. Never taken that before and none of the meds I've used have caused me to be that drowsy.

    Maybe you should look into that?

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  9. Time to sell!!! Ain't nobody ever lost when selling for a profit.

    Yeah, drugs are always bad for you. Even if it makes you feel better. Especially the one they prescribe to you.

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  10. Yeah, theres always someone who makes money.

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  11. I'm guessing the internet problem has been really bad lately.

    Hope it gets fixed soon.

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  12. Thanks for sharing!

    They have cool books i think...
    I'm not sure

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  13. Cat seem to be a fair company and a great one
    just good news no ? ;D

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