Caterpillar $CAT Bucks the Bears, Wipes Out 2014 Correction in 1 Hour
Caterpillar, which embodied the China slowdown fears behind the market’s selloff, wiped out its 2014 decline in one hour following better-than-expected China sales and a new $10 billion buyback.
$CAT hit a high for the year of 92.41 two weeks ago, but then turned on a dime as China fears exploded. The shares dropped four percent to $88.48.
The stock was trading back to those 2014 highs in the premarket as it said in a press release that China sales in 2013 were up 20 percent.
Jan. 27 at 8:09 AM
Bulls were running for the hills before this earnings release, according to StockTwits sentiment data: The bears were not giving up the fight this morning though as many pointed to continued weak sales to miners and the buyback as just financial smoke and mirrors.
mytfine Jan. 27 at 8:40 AM $CAT joins the optics only frenzy. Get those buybacks in. Forget growth, short term stock support is a company’s only goal. #insiders #.01%
Jan. 27 at 7:51 AM
Reality Check on $CAT: While everybody’s giddy about the “beat,” sales FELL. Have the last 2 days taught us nothing?
The conference call begins at 11ET and many $cashtaggers on StockTwits are betting on a pullback in the stock during the call as its executives are forced to give more detail on China demand. Going to be a the No. 1 battle on the stream today.
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