Apple is sexier, no doubt, but Caterpillar (CAT) is the world’s largest maker of heavy construction and mining equipment. That makes CAT something of a bellwether, and its latest results suggest a mixed picture of the global economy.
CAT dug up the market’s favorite gem — a beat-and-raise quarter — and that’s boosting CAT stock. The good news is that construction in the U.S. is healthy and accelerating. Construction in China is building up again after a prolonged period of sluggishness. That’s all very optimistic.
The bad news is that the global mining industry continues to be in a major funk, despite improvement in Europe’s economy and China’s moves to support its growth targets. That means more weakness for mining and commodities stocks for the foreseeable future.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.