Market Minute: Bellwether Caterpillar Posts Disappointing Profit and Sales

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Caterpillar misses, and Boeing gears up for a re-launch.

The major averages last week suffered their biggest losses since last June. The Dow Industrials and the S&P 500 both fell 2.1 percent, and the Nasdaq dropped 2.7 percent.

But Barron's annual survey of money managers shows record levels of bullishness, despite ongoing concerns about the European financial crisis and Fed policy. The poll indicates the Dow could hit 16,000 by the middle of next year.

FILE - JANUARY 28: According to reports January 28, 2013, Caterpillar Inc, posted a 55 percent drop in fourth quarter profit due to charges taken from accounting fraud at a Chinese subsidiary and a high inventory due to the global economic slow down. ELMHURST, ILLINOIS - APRIL 24: Caterpillar earth moving equipment is displayed at Patten Industries on April 24, 2006 in Elmhurst, Illinois. Heavy equipment maker Caterpillar reported first-quarter earnings higher than forecasted at $840 million, up 45 percent from $581 million during the same period in 2005. (Photo by Scott Olson/Getty Images)
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Quarterly earnings are set to dominate the action again this week, and there has to be some concern with the numbers from one bellwether company: Caterpillar's (CAT) profit and sales came in short of expectations. It also forecast that sales for the full year will be below target levels, because of slow growth in the world economy.

Hasbro's (HAS) operating net and sales both topped expectations. The company pointed to strong sales of games, as well as toys intended for girls.

After the close, we'll hear from chip-maker Texas Instruments (TXN) and from Netflix (NFLX).

Boeing (BA) is installing its re-designed battery packs on its troubled 787 Dreamliner today. It could start carrying passengers again next month after the FAA late on Friday approved the new battery system. The worldwide fleet of 787s was grounded in mid-January.

A trial starts today in a trademark infringement case against Facebook (FB). A company named Timelines sued Facebook back in 2011 after the social-networking giant introduced the timeline feature on its user pages.

General Motors (GM) says it will build four new manufacturing plants in China over the next three years. The goal is to increase production capacity to 5 million units a year.

Ameriprise Financial (AMP) is reportedly preparing a bid for the asset management unit of Lloyd's Banking of the U.K. According to the Sunday Times the bid could be valued at $1.2 billion dollars.

And Orbital Sciences (ORB) sent a rocket on its first test flight last night. The company is competing with a firm owned by Elon Musk to take cargo to the International Space Station.


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13 Comments

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tmlbtb

Our own government has us in a sequester, and people are being laid off for it. Banks and American corporations are sitting on record cash and record profits, but refuse to hire. This means the money is tied up, people aren't making a disposable income to buy goods and services. We are sitting on enough natural gas and oil so we could cut the cord overseas. So, what's wrong with us? We are our worst enemy!!

April 22 2013 at 12:56 PM Report abuse +1 rate up rate down Reply
lacabrera

That is the New way of asking the tax payers for more money ,then send the jobs to China

April 22 2013 at 12:06 PM Report abuse +1 rate up rate down Reply
omgnojobs

AMERICAN BUSINESSES KEEP TAKIN YOUR JOBS OVERSEAS UNTILL THIS "OUT OF CONTROL SPENDING" MUSLIM CLOWN IS REMOVED FROM OUR WHITE HOUSE IN HANDCUFFS N DEPORTED LIKE ALL HIS ILLEGAL IMMIGRANTS HE LET "BREAK" INTO AMERICA N BOMB N KILL N MAIM OUR AMERICAN CITIZENS. !

April 22 2013 at 11:48 AM Report abuse rate up rate down Reply
1 reply to omgnojobs's comment
danfix

You can't be so young that you weren't watching over the past 30 years. It surly can't be the present Potous at fault.

April 22 2013 at 12:51 PM Report abuse rate up rate down Reply
rrusrjr2

So the liar again is exposed. Obama, by staying quiet about GM's China manufacturing plans, admits he can't 'bring those jobs 'back'. Only fools believed him in the first place, aka his adulatory sheep. GM establishing themselves more heavily in China(they already build Chinas' 2nd. Most popular car, Buick, there.). Obama has stated over the last several months that he now believes the government should not be in the car business. This 'revelation' in strong part due to GM's inability to repay the $26.5 billion remaining from the bailout. Maybe China can again be the US taxpayers savior, buying up what's left of a once proud US manufacturer. And where is the noise from the only beneficiaries of the GM bailout, the UAW? Another bad turn for US manufacturing, with BO standing by, like a deer in the headlights. Incompetent.

April 22 2013 at 11:03 AM Report abuse +1 rate up rate down Reply
FSHNT21

For all the Kool Aid drinkers...
The Economy is NOT "recovering" as Barry and his minions would have you believe....
The economy is still in the tank, as Caterpillars earnings indicate. They are a marker in that they supply a huge amount of machinery to the construction industry and that industry is STILL floundering.
The administrations cooked numbers on unemployment do not take into account that fewer people have jobs to lose, the huge number of people who have given up on trying to get hired, college graduates who can't find jobs and those whose unemployment has run out or are not eligible for unemployment.
The old adage that "figures lie and liars figure" certainly applies to this administrations take on how the economy is REALLY doing...

April 22 2013 at 10:53 AM Report abuse +2 rate up rate down Reply
2 replies to FSHNT21's comment
omgnojobs

NOTHING BUT THE LAST 5 PLUS YEARS OF RECORD UNEMPLOYMENT~~RECORD FORECLOSURES~~RECORD JOB LOSSES~~N RECORD BOMBINGS N KILLING N MAIMING OF OUR AMERICAN CITIZENS N IT ONLY GETS WORSE FROM HERE. ! . !

April 22 2013 at 11:51 AM Report abuse rate up rate down Reply
danfix

Thoes numbers have always been crunched in ways that support recovery. Dume and gloom don't get considered regardless. If it were there would be more blood in the streets. I think that if more was spill t Congress there might be some change.

April 22 2013 at 12:57 PM Report abuse +1 rate up rate down Reply
XPRESYRSLF

GENERAL MOTORS IS BUILDING 4 NEW PLANTS IN CHINA. WOW ! THIS IS WHAT OBAMA'S BAIL OUT OF AMERICAN TAX PAYERS MONEY HAS REAPED WHAT A SELL OUT TO AMERICA. OBAMA REALLY HATES AMERICA'S CAPITALISM NOT FOR IS PERSONAL WEALTH BUT FOR THE REST OF AMERICAN CITIZENS ONLY, OBAMA SHARES THE TAX PAYING CITIZENS MONEY ON ILLEGALS AND THEIR ETITLEMENTS AND FAILING GREEN JOB'S HIS MAIN SUPPORTING LOBBYIST'S. BY CALLING HIS FAILURES AN INVESTMENT INTO THE FUTURE.

April 22 2013 at 10:16 AM Report abuse +5 rate up rate down Reply
rkeeeballs

So the market depends on Caterpillar ?.....why? During the recession most of their already sold products were at idle. So why would a sales surge be expected ?....Factor in the fact that their products last a long, long time and are usually rebuilt vs. being replaced . Thinking the market experts are disconnected from the real world.....yup.

April 22 2013 at 9:42 AM Report abuse +1 rate up rate down Reply
john

get out of the market. i did and i feel more secure.

April 22 2013 at 9:32 AM Report abuse -1 rate up rate down Reply
1 reply to john's comment
labourboss

Good for you the market is NOT for wimps!

April 22 2013 at 9:45 AM Report abuse +1 rate up rate down Reply
1 reply to labourboss's comment
muvcritic

No, but it is for fools.

April 22 2013 at 10:39 AM Report abuse -1 rate up rate down