Caterpillar just came out with earnings, and the stock is off, falling due to an EPS miss.
Also, everyone is buzzing about the commentary regarding China:
“While the economic recovery in the United States continues to be weaker than many expected, we’re forecasting continued moderate economic expansion. That, coupled with stronger growth in the developing world, is driving higher sales for Caterpillar. There’s been quite a bit of concern in the media over the past few months centered on China. While we’ve seen some softening of growth in China, dealer deliveries to end-users were up in the second quarter of 2011 compared with the second quarter of last year and grew at a faster rate than the overall industry in China. In our view, China is doing a good job of balancing growth and inflation, and our expectations for China remain positive. That said, we can’t lose sight of the significant growth that’s going on around the world outside the United States and China. Economic activity and our business in Latin America, the Middle East, Africa, CIS and greater Asia are robust,” Oberhelman added.
What’s that mean? Everyone has their own theories.