See the full story in the original article.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/28/2026 | 772.35 |
| Change that session | +0.35% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Caterpillar's stock heads for worst day in 7 years — and what that means for the Dow
- Caterpillar Beat Earnings and Still Dropped 9%. The AI Power Trade Just Hit the Same Wall as Software.
Caterpillar reported third-quarter results on October 29, 2026, with adjusted EPS of $7.20 beating the $7.04 consensus, while revenue of $20.68 billion was nearly in line with the $20.69 billion estimate. The stock still fell 9% before the open to $647.90, after dropping 13% in the month before the report. Revenue rose 17.3%, and Power Generation sales reached $3.421 billion, up 30%, driven by turbines and large reciprocating engines sold to data centers; operating profit included $128 million of IEEPA tariff refunds. The company gave no numeric guidance and no dollar figure for its record backlog, only repeating the $72 billion cited in August. The article notes that Vertiv and GE Vernova also slipped before the open despite big beats on October 28, when Vertiv had risen 16% after raising its full-year revenue guidance.
- Caterpillar Is Quietly Becoming an AI Stock. Here's the Segment Growing 72% That Proves It.
Caterpillar's second-quarter revenue rose 24% from a year earlier and earnings per share jumped 73%, with the power and energy segment growing fastest. Retail sales of power generation equipment climbed 72%, which CEO Joseph Creed attributed to very strong demand for large generator sets and turbines used in data centers. Data centers consumed about 4.9% of U.S. electricity supply in 2025, and their consumption is projected to more than double by 2030. The company's backlog reached a record $72 billion, up 92% over the past year. Wall Street expects third-quarter revenue growth of 17% and earnings of $7.03 per share, up 42%, and the author says he wouldn't be surprised if the company beats those estimates.
- HEAVY LOSSES : Norway Wealth Fund Reports $29 . 7 Billion Loss Amid Israeli Divestment Campaign – The Yeshiva World
Norway’s sovereign wealth fund reported a $29.7 billion loss for the third quarter, with a negative return of 0.5%, as rising global interest rates weighed heavily on its bond portfolio. The fund manages about $2.3 trillion and holds roughly 1.5% of the world’s listed companies, while Deputy CEO Trond Grande warned of volatility in AI and semiconductor stocks and said the fund is slightly underweight technology, which makes up about one-quarter of its portfolio. The fund has expanded its divestment from Israeli investments, citing the Gaza war and settlement construction, after intensifying the campaign in August, selling holdings in 17 Israeli companies, and withdrawing about NIS 2 billion from four major banks. It also divested from Caterpillar, prompting the U.S. State Department to call the accusations against Caterpillar and Israel “baseless.” Norway’s prime minister rejected the criticism, saying the fund makes its investment decisions independently of the government.
- GE Vernova vs. Caterpillar: Which Has More Exposure to the AI Power Build-Out?
The article compares GE Vernova and Caterpillar in terms of their exposure to AI infrastructure spending. Analysts expect AI capital expenditures to reach $800 billion this year, and Goldman Sachs says hyperscaler investment could hit $1.7 trillion by 2027 and $2.1 trillion by 2029. GE Vernova has greater exposure to this trend, with strong demand for gas turbines and electrification equipment; its data center orders in electrification doubled to $5 billion in the first half of 2026, and its total backlog reached $176 billion. Caterpillar benefits from demand for backup power systems, with a $72 billion backlog, power-generation sales up 72% from last year, and gas turbine order backlogs stretching to 2030. Both stocks have been highly volatile: GE Vernova is up 596% and Caterpillar up 149% since the start of 2024, but they are 23% and 32% below their 52-week highs, respectively.
- Caterpillar Sinks 5% as Deere Edges Higher: Is the Data Center Power Premium Unwinding?
Caterpillar shares fell 5% to $760.64 in afternoon trading, extending a 7% decline over the past month, while Deere rose 2% to $642.72 and PACCAR slipped 1%. Caterpillar's Power and Energy segment, which supplies on-site electricity for data centers, grew sales 17% to $8.24 billion in Q2 2026, and total backlog reached $72 billion, with some customers booking as far out as 2030. The article argues Deere and PACCAR sit outside the AI infrastructure trade, and both stocks fell sharply last week as long-dated Treasury yields rose, raising borrowing costs for equipment buyers. Caterpillar expects about $600 million in Q3 2026 tariff costs, and the stock is well below its 52-week high of $1,071.47. The company reports third-quarter results in early next month, on a date not yet confirmed, and investors will watch whether Power and Energy sales keep growing fast enough to defend the valuation.
Related markets
Latest news
- Christine Lagarde, Boris Vujčić: Monetary policy statement
The ECB Governing Council decided to keep its three key interest rates unchanged. Energy prices kept rising, raising upside risks to inflation and downside risks to growth, and financing conditions have tightened since the last meeting. Inflation rose to 3.8% in September from 3.2% in August, with energy inflation at 18.9% (from 14.3%) and inflation excluding energy at 2.3% (from 2.1%). The unemployment rate was 6.4% in August, and the wage tracker projects negotiated wage growth of 2.5% to 2.8% for the rest of 2026 and an average of 2.6% in the first three quarters of 2027. The ECB said it will set policy based on data at each meeting and is not pre-committing to a rate path.
- Nvidia CEO Huang caught up in reported Chinese spy probe as AI stocks slide
As AI stocks slid on concerns about infrastructure costs and uncertain returns, the New York Times reported that U.S. intelligence agencies concluded Alice Huang, an executive at Singapore-based data center company Megaspeed suspected of helping China obtain restricted Nvidia chips, was also gathering intelligence for Beijing. Surveillance reportedly showed she had a close relationship with Nvidia CEO Jensen Huang, raising concerns about access to sensitive information. President Donald Trump was briefed on the findings roughly a year ago but chose not to act, according to the Times, citing concerns about disrupting Nvidia's chip sales and China trade relations. Megaspeed's Malaysian affiliate purchased at least $4.8 billion in AI equipment containing Nvidia chips between June 2024 and February 2026, according to trade records cited by the Times. Nvidia said its dealings with Alice Huang were ordinary business and that customers such as Megaspeed receive no sensitive trade secrets or national-security-relevant information.
- Alphabet tumbles, software and cybersecurity stocks sink as earnings disappoint: AlphaCheck
Stocks fell Thursday as cybersecurity and software shares dropped after disappointing forecasts. Alphabet (GOOG, GOOGL) posted a rare miss on both top and bottom lines, dragging down Big Tech. Microsoft (MSFT) erased its after-hours gain despite strong results reported Wednesday. The tech sector (XLK) declined, pulling Nvidia (NVDA), AMD (AMD) and Broadcom (AVGO) lower, while Brent crude fell more than 2% to below $110 per barrel and WTI traded near $100.
- Alphabet downgraded, eBay upgraded: Wall Street's top analyst calls
According to The Fly, Wells Fargo upgraded eBay (EBAY) to Equal Weight from Underweight with a price target of $106, up from $91, while Deutsche Bank upgraded PDD Holdings (PDD) to Buy with a $105 target. Citizens downgraded Alphabet (GOOGL) to Market Perform from Outperform, saying monetization appears challenged even though query growth reached a five-year high, and Barclays downgraded PayPal (PYPL) to Underweight with a $53 target, down from $56. Argus downgraded Wendy's (WEN) to Sell from Buy after a non-binding proposal from Trian Fund Management and others to acquire the shares not owned by the Investor Group for $7.35 per share in cash. BofA double downgraded Sprouts Farmers Market (SFM) to Underperform from Buy with a $47 target, down from $100, citing a challenging consumer environment and the cyclospora disruption. Oppenheimer downgraded Boston Scientific (BSX) to Perform, and Jefferies downgraded it to Hold.
- Microsoft beat estimates while Google looks at a value hit, and rising risks at Nvidia
The 8:30 show covers the day's top stories, including earnings from Microsoft (MSFT) and Alphabet (GOOGL)(GOOG), mounting risks at Nvidia (NVDA), and the new touchscreen laptop Apple (AAPL) just debuted.
- European Central Bank keeps key interest rate on hold at 2.5%
The European Central Bank held its deposit facility rate at 2.5% on Thursday, as expected, after a 25 basis point hike in September, even though euro zone headline inflation rose to 3.8% last month, the highest since September 2023. The Governing Council said rising energy prices pose upside risks to inflation and downside risks to growth, while underlying inflation and wages are broadly stable and financing conditions have tightened. Energy price inflation reached 18.8% amid Middle East turbulence. Deutsche Bank's Mark Wall said the policy path is harder to predict and expected one more hike to 2.75% in December, probably the end of the hiking cycle, while Christine Lagarde is still president. He added that the institution is bigger than any one person, but uncertainty remains about decisions next year after Lagarde's announced departure.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.