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The Dow Jones today jumped 50 points as manufacturing giant Caterpillar Inc. (NYSE: CAT) reported stronger-than-expected earnings before the bell. Shares of Caterpillar jumped 3.5% after the firm hiked its quarterly outlook and said that tariffs would hit the firm's bottom line. The solution to rising tariffs is to increase prices, the company said. The firm increased its full-year profit outlook to a range of $11 to $12 per share.
With Q2 earnings pushing some stocks to new highs, we've identified three companies that are set to rake in profits this earnings season. Check them out here...
Here are the numbers from Friday for the Dow, S&P 500, and Nasdaq:
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Now here's a closer look at today's Money Morning insight, the most important market events, and stocks to watch.
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Money Morning Insight of the Day
We're moving deeper and deeper into earnings season. If you're looking to make real money, the time to get started is now. Money Morning Quantitative Specialist Chris Johnson argues the markets are at a tipping point. And with just a few smart plays in today's classic stock picker's market... you can pull in triple-digit gains with just a small investment. Read those picks right here.
The Top Stock Market Stories for Monday
- One of our most reliable predictors of recessions is trending in a dangerous direction. It's happening right now, even as you read this. This indicator has signaled before each of the last seven recessions, going all the way back to 1969. Now it's just about to signal again.
- On Friday, the U.S. Commerce Department announced that Q2 economic growth registered at 4.1%. That figure was largely in line with expectations, as economists and analysts projected a positive figure in the wake of U.S. President Donald Trump's tax reform. That report has created a buying opportunity on three stocks that are significantly undervalued and trading at incredible levels. Go here to get our top picks for July.
Three Stocks to Watch Today: RIG, CBS, AXP
- Transocean Ltd. (NYSE: RIG) will report earnings after the bell this afternoon. Wall Street analysts project that the oilfield-services giant will report a quarterly profit loss of -$0.17 on top of $754.3 million in revenue.
- Shareholders of CBS Corp. (NYSE: CBS) are paying close attention to a meeting among the board of directors. The board is meeting to discuss allegations of sexual harassment against the firm's CEO Les Moonves and the culture of the organization. Allegations were levied against Moonves in a profile released by The New Yorker on Friday.
- Investors in American Express Co. (NYSE: AXP) are on edge Monday. According to a report by The Wall Street Journal, the credit card giant had allegedly changed its currency conversion rates without telling customers. The report says the firm had engaged in this practice all the way back to 2004. The firm pushed back against the report, stating that it offered competitive exchange rates and transparency to its clients.
- Look for earnings reports from Seagate Technology Plc. (Nasdaq: STX), Illumina Inc. (Nasdaq: ILMN), Texas Roadhouse Inc. (Nasdaq: TXRH), SunPower Corp. (Nasdaq: SPWR), athenahealth Inc. (Nasdaq: ATHN), Diamond Offshore Drilling Inc. (NYSE: DO), Cognex Corp. (Nasdaq: CGNX), and AK Steel Holding Corp. (NYSE: AKS).
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.