See, Caterpillar Earnings Were Horrible

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We ignored Caterpillar’s (CAT) sharp upward move this morning, and pointed out that that if an alien landed on earth and the first thing they read was Caterpillar’s quarter earnings, they’d conclude that they’d visited this strange new planet in what must be the worst depression imaginable.

Some disagreed, like Cramer, who says, helpfully, that CAT is in great shape.

Er, no.

Not only was Q2 awful, but the outlook isn’t so hot either. Q3 will be “challenged”, it may not even make money, and the company announced that it plans rolling factory shutdowns in the future. This is more of that severe underemployment we’ve been talking about, and it’s a horrible leading indicator for jobs. If you’re not even working your remaining employees anywhere near full bore, what are the odds you’re going to be hiring anytime this decade.

Still the stock is up a little, even as the broader market has turned red. Will the NASDAQ be denied its 10-day winning streak? As of right now, yes.

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