Caterpillar Inc

Luck Stone announced in mid-September 2026 that it had expanded its collaboration with Caterpillar to roll out autonomous hauling technology to two additional Virginia quarries, building on a site where autonomous Cat trucks have already moved more than 3.50 billion tons without reported injuries. The expansion includes the first-ever deployment of Caterpillar's autonomous haulage on Cat 775 trucks, and the company is pairing the automation with workforce skill development to address quarry safety and productivity challenges. The move reinforces Caterpillar's broader push into autonomy and AI, which analysts tie to higher quality recurring revenue, and follows the company's August update highlighting record backlog and heavy investment in digital and automation. Caterpillar's narrative projects $94.5 billion revenue and $17.4 billion earnings by 2029, with a $970.37 fair value implying 20% upside, while some of the most optimistic analysts already assumed revenues above US$112,200,000,000 and earnings near US$20,700,000,000 by 2029. Investors are still weighing rising tariffs and pricing pressure against the pace at which digital and service income can scale.

Caterpillar expanded its autonomous hauling partnership with Luck Stone to additional quarry sites in the United States, marking the first use of autonomous haulage on Cat 775 trucks specifically configured for quarry operations. The partners are targeting gains in safety, production consistency and workforce development through wider use of automation across these quarries. Caterpillar, a machinery heavyweight with a reported market value of about $360.2 billion, builds large-scale construction and mining equipment that can directly use autonomous hauling systems in quarries. The company's Narrative holds that heavy equipment is shifting from pure iron to technology plus services, with autonomy and electrification supporting multi-year demand and profitability, and deploying autonomy on Cat 775 fleets can deepen Caterpillar's services and software footprint rather than just sell more trucks. Rivals including Komatsu and Volvo are also targeting that services and software territory, while analysts flag tariff pressure, pricing competition and high capital intensity as weak points that could amplify earnings swings if customers hesitate on autonomy rollouts.

Caterpillar has drawn heavy investor search interest on Zacks.com, with the construction equipment maker now carrying a Zacks Rank #2 (Buy) on upward earnings estimate revisions. Caterpillar is expected to post earnings of $6.95 per share for the current quarter, a year-over-year change of +40.4%, and the Zacks Consensus Estimate has moved +0.3% over the last 30 days. The consensus earnings estimate of $27.37 for the current fiscal year indicates a year-over-year change of +43.6% and has changed +1.5% over the last 30 days, while the next fiscal year's consensus estimate of $32.99 indicates a change of +20.5% and has changed +1.1% over the past month. On the revenue side, the consensus sales estimate for the current quarter of $20.19 billion indicates a year-over-year change of +14.5%, with current and next fiscal year estimates of $79.37 billion and $87.98 billion indicating +17.4% and +10.9% changes, respectively. In the last reported quarter, Caterpillar posted revenues of $20.54 billion, up 24% year over year, and EPS of $8.17 versus $4.72 a year ago, beating the Zacks Consensus Estimate of $19.31 billion by +6.37% on revenue and surprising by +30.72% on EPS, with the company topping consensus EPS and revenue estimates in each of the trailing four quarters. Caterpillar is graded D on the Zacks Value Style Score, indicating it trades at a premium to its peers.

Caterpillar reported its biggest quarter ever, with Q2 2026 revenue of $20.54 billion, the first time the company has crossed $20 billion in a single quarter, and EPS of $8.17 against a $6.1974 estimate. Operating margin expanded to 20.9% and net income jumped 64.89% year over year, while the backlog grew sequentially by $9 billion to $72 billion, up roughly 92% year over year, with some Power & Energy customers placing orders as far out as 2030. The Power Generation product line grew 72% in the quarter on data center demand, and Caterpillar is bringing back roughly 1.5 gigawatts of 10-megawatt gas reciprocating engine capacity, with first shipments in Q4. CEO Joe Creed said no one is slowing down at the moment and that customers are asking for more units if the company can get them out. On the bear side, Caterpillar expects $2.2 billion in full-year 2026 tariff costs, and Resource Industries profit fell 39% in Q1 on tariff-driven manufacturing pressure, though $392 million of IEEPA tariff recoveries already flowed through Q2. Among peers, Cummins Q2 2026 Power Systems revenue grew 19% to $2.26 billion, and Eaton Q2 revenue grew 21.39% with Electrical rolling orders up 41% organically.

Caterpillar's second-quarter 2026 results showed its power generation backlog surging 92% year over year to over $72 billion, driven by AI and data center demand. Large generator sets and turbines grew 72%, and the company's main constraint is now production capacity, not demand. About 59% of the backlog is slated for delivery within the next year, with orders extending through 2030, decoupling Caterpillar from the traditional construction cycle. To meet demand, Caterpillar plans to restart its 10-megawatt gas engine platform, adding about 1.5 gigawatts of capacity, with shipments beginning before year-end. The stock has risen over 90% in the past 12 months, trading around $815 per share.

Caterpillar Inc. is accelerating its push into AI-powered industrial operations through a collaboration with FieldAI, aiming to reshape construction, mining, and manufacturing with robotics and digital technologies. The partnership focuses on physical AI, enabling machines to interpret real-world environments for autonomous inspections, enhanced situational awareness, and operational optimization, while also leveraging NVIDIA accelerated computing and Omniverse to develop digital twins. This builds on Caterpillar's existing autonomous mining presence, and competitor Komatsu is pursuing a similar path with AIM Intelligent Machines for autonomous bulldozers and excavators. Caterpillar shares have gained 90.9% in the past year, outperforming the industry's 75.3% growth, and the Zacks Consensus Estimate points to 43.5% earnings growth in 2026 and 20.2% in 2027.

Jim Cramer warned on Mad Money that AI exposure is making even supposedly diversified portfolios more concentrated, reclassifying Caterpillar as a data center stock after its Power Generation revenue surged 29% and shares rose 90% over the past year. He suggested TJX and Wells Fargo as replacements to balance exposure, noting that true diversification requires separating end-market drivers, not just sector labels. Caterpillar reported its first-ever $20 billion sales quarter in Q2 2026, with revenue of $20.54 billion, up 23.98% year over year, and adjusted EPS of $8.17 versus a $6.20 estimate. The company's backlog expanded $9 billion sequentially to $72 billion, with some orders placed as far out as 2030. Cramer's point extends to other names: Generac's data center backlog hit $1.6 billion, Cisco took $4 billion of hyperscaler AI infrastructure orders in Q4 FY26, and Micron, up 227.94% year to date, reported fiscal Q3 revenue of $41.5 billion. The takeaway is that Caterpillar's data center exposure can reinforce an existing AI bet rather than offset it, so adding a name like TJX could reduce concentration without abandoning technology holdings.

Caterpillar Inc. reported its first-ever $20 billion sales quarter, driven by surging demand for power generation equipment from AI data centers, and the company's power and energy division nearly matched its traditional construction segment in revenue. In the second quarter, the power and energy division brought in over $8.2 billion, a 17% year-over-year increase, with operating profit exceeding $2 billion, topping construction's profit. Total sales and revenues reached $20.5 billion, up 24% from $16.6 billion a year earlier, with profit per share of $7.77 and adjusted operating margin expanding to 21.9%. The order backlog stood at $72 billion at the end of June, up 92% from a year earlier. Caterpillar also announced a workforce commitment in Arkansas worth up to $3 million, the fifth allocation under its five-year, $100 million Building the Future Workforce Initiative. However, the stock's forward price-to-earnings ratio has climbed above 30, making it more expensive than Microsoft, Alphabet, or Nvidia, and leaving little room for disappointment if AI infrastructure spending slows.

Caterpillar is rolling out new AI tools across its industrial and construction operations, including the Cat AI Assistant for technicians and equipment operators, and has committed $100 million to workforce training focused on AI and robotics adoption. The company, a machinery maker with a market cap of $367.9 billion, is also positioned to serve ongoing demand for power generation equipment tied to data center expansion for cloud and AI infrastructure. This AI push signals a heavier tilt toward software, services, and data-driven support, potentially strengthening its high-margin aftermarket business and linking equipment sales to long-term service relationships. Investors should watch for future disclosures on AI-linked orders and service revenue in upcoming quarterly results to gauge the strategy's success.

Caterpillar is leveraging its decades of experience in automating mining operations to deploy AI across more dynamic environments like construction sites, according to CTO Jaime Mineart. The company's autonomous offerings include haul trucks, drilling, underground loaders, dozers, and remote-controlled equipment, along with a software command center and fleet management. Now, Caterpillar is applying AI more broadly, including the Cat AI Assistant, which allows field technicians to use voice commands for repair procedures and troubleshooting, drawing on data from 1.6 million connected assets and over 16 petabytes of structured data. The company also uses AI for digital twins in manufacturing and software development, and plans to spend $100 million over five years to train its 118,000 employees in AI, autonomy, and robotics. This push comes as Caterpillar's quarterly revenue hit an all-time high of $20.5 billion in Q2, with its power-generation division seeing a 72% sales spike to $3.10 billion, driven by demand for data center equipment.

Chevron's second-quarter earnings beat estimates, but the bigger news is its 20-year power purchase agreement with Microsoft to build a natural gas-powered facility for an AI-focused data center in Texas. The deal, part of Project Kilby, involves Chevron's subsidiary Energy Forge One, Engine No. 1, and Microsoft, aiming to develop about 2.67 gigawatts of on-site power, with most coming from GE Vernova turbines and additional capacity from Solar Turbines, a Caterpillar subsidiary. Chevron will supply natural gas from its Permian Basin production and manage long-term operations, securing stable revenue through a take-or-pay contract while Microsoft locks in energy for decades. This move diversifies Chevron's revenue streams and positions it to benefit from AI-driven energy demand.

Kevin Warsh, in his first Jackson Hole speech as Fed chair, rejected the Phillips curve dogma that inflation stems from workers earning too much, instead blaming fiscal deficits and money creation. This reframing matters for growth stocks, industrials, and banks, as it reduces the Fed's incentive to raise rates when hiring accelerates. NVIDIA reported revenue of $96 billion, more than doubling year over year, and Caterpillar posted its first $20 billion quarter, both benefiting from a Fed that treats investment cycles as productive rather than overheating. JPMorgan reported a 23% ROTCE, and a less reactive Fed could compress rate volatility for bank shareholders ahead of the September 16 decision. The market priced roughly a 55% to 60% chance of a rate hike at the September meeting as of August 28, 2026.

Caterpillar Inc. reported a 34.8% year-over-year increase in Construction Industries segment revenues to $8.35 billion in the second quarter, following a 38% rise to $7.16 billion in the first quarter. The segment, which generated about $25.1 billion in sales in 2025, accounting for roughly 37% of total revenues, now represents about 41% of the company's total. The growth was driven by a $1.75 billion benefit from higher sales volumes and $309 million from favorable price realization. Caterpillar aims to increase Construction Industries sales to end users by 1.25 times by 2030 compared with 2024 levels, supported by expectations of over 25% growth in global construction spending between 2024 and 2034. The company is expanding rental, digital, and technology-enabled offerings, and investing in autonomous equipment and AI-driven jobsite solutions. Caterpillar shares have gained 91.3% in the past year, and the Zacks Consensus Estimate points to 42.4% earnings growth in 2026 and 20.6% in 2027.

Caterpillar Inc. has strengthened its dividend-growth credentials in 2026, raising its quarterly dividend by 8% to $1.63 per share in June, which brings the annualized payout to $6.52 per share and marks the 32nd consecutive year of increases. The hike is backed by stronger cash generation, with second-quarter enterprise operating cash flow of $4.4 billion and a record $5.1 billion in MP&E free cash flow, while management expects full-year MP&E free cash flow to land in the top half of its $6 billion to $15 billion target range. However, the stock's forward yield is only about 0.79% at a share price of $827.90 on August 21, making it more attractive for dividend growth than for current income. The company also spent $6.522 billion on share repurchases in the first half of 2026, compared with $1.399 billion in dividends, indicating a combined capital-return strategy. While the dividend appears well supported, the low starting yield and cyclical nature of the business raise questions about whether the current share price offers enough upside.

US manufacturing rose to its highest level since 2022 last month, driven mainly by demand from AI data centers, with industrial giants including Caterpillar, Cummins, and Ford shifting their businesses to capture the opportunity. Caterpillar's electricity generators have become its most profitable segment, and the company is investing $725 million to expand generator production at an Indiana plant while converting a Kansas plant to produce turbine engines and resuming production of 10-megawatt generators. Cummins is investing $450 million to expand generator production on top of a $200 million expansion completed last year, and expects data center-related sales to rise 80% to $9 billion by 2030. Ford was also named among manufacturers pivoting toward AI-data-center-adjacent opportunities, though it revealed fewer specific investment figures. Both Caterpillar and Cummins are now more exposed to a single fast-moving market than they've ever been, and any slowdown in AI infrastructure spending would hit their generator segments.

Caterpillar's order backlog hit record levels before its stock surged 96% between August 2025 and August 2026. In fiscal Q1 2025, management reported an all-time record for organic backlog growth in a quarter, a $5 billion jump that pushed the total to $35 billion, and by the next quarter it climbed to a new record of $37.5 billion. The company attributed the growth to increasing energy demands to support data center growth related to cloud computing and generative AI. Despite trailing-twelve-month revenue being down 4.9% and tariff headwinds clouding the earnings outlook, the backlog signaled future sales were lining up at unprecedented levels.

Caterpillar reported a sharp year-over-year improvement in adjusted operating margin in the second quarter of 2026, expanding about 430 basis points to 21.9%, the first such improvement since the second quarter of 2024. The gain came despite an 18% rise in cost of sales and higher SG&A and R&D expenses, as higher sales volumes and favorable pricing more than offset cost pressures, and the quarter included $392 million of expected IEEPA tariff recoveries. Management now expects full-year 2026 tariff costs of about $2.2 billion, excluding any additional IEEPA tariff recoveries in the second half, and has raised its 2026 outlook to mid-to-high teens sales growth from low-double-digit growth. The Zacks Consensus Estimate calls for 2026 revenues of approximately $78.8 billion, implying an adjusted operating margin near the lower end of Caterpillar's 18-22% target range, up from 17.2% in 2025. Among peers, Terex reported a slight decline in operating margin to 10.9% and Komatsu reported 14.5% for the April-June quarter, both citing tariff headwinds.

Natural gas power turbine prices are on track to nearly triple by the end of next year, driven by surging demand from AI data centers. Wood Mackenzie projects the per-kilowatt cost of gas turbines could be 195% higher than in 2019. GE Vernova's power division saw orders jump 134% year over year in Q2, lifting its backlog by $13 billion to $176 billion. Siemens Energy reported 18.5% revenue growth and received 15 gigawatts of new gas turbine orders in the latest quarter, expanding its backlog to 69 gigawatts. Mitsubishi Heavy Industries posted 13.3% revenue growth, while Caterpillar and Woodward are also benefiting from the trend.

Caterpillar and Cummins both reported record quarterly results driven by surging demand for data center power generation and strong North American construction activity. Caterpillar's second-quarter 2026 sales rose 24% year-over-year to $20.5 billion, with adjusted earnings per share of $8.17, far exceeding the $6.20 analyst average, and it raised its full-year revenue growth outlook to mid- to high-teens percentage from low-double-digits. Cummins posted record revenue of $9.5 billion, GAAP net income of $932 million, and diluted earnings per share of $6.73, while lifting its 2026 revenue growth forecast to 10-13% from 8-11% and its full-year EBITDA margin guidance to 18.0-18.5% from 17.75-18.5%. Caterpillar also reduced its full-year tariff cost estimate to approximately $2.2 billion and secured $392 million in tariff recoveries under the International Emergency Economic Powers Act. The article notes Caterpillar trades at a forward P/E of 26.07x versus Cummins at 18.50x, and suggests Cummins may offer better risk-adjusted value for new investors.

Palantir Technologies reported second-quarter earnings that beat expectations and raised its full-year guidance, sending shares up 26% in early trading. Revenue grew 93% year over year, with U.S. commercial revenue jumping 150%, and cash flow margins reached 51%. CEO Alex Karp used the shareholder letter to sharply criticize OpenAI and Anthropic, arguing that Palantir's model-agnostic approach protects customers from having their data used to build competitors. The discussion also covered Caterpillar's expectation-smashing quarter, driven by AI-related infrastructure demand, and Spotify's mixed results, which showed strong user growth but missed revenue and earnings estimates.

Caterpillar reported second-quarter 2026 sales and revenues of $20.5 billion, up 24% from a year earlier and the first time the company has exceeded $20 billion in a single quarter. Adjusted profit per share rose 73% to $8.17, while backlog grew sequentially by $9 billion to a record $72 billion. The company raised its full-year 2026 sales and revenues growth forecast to mid- to high teens, citing strong demand across all three primary segments, and now expects adjusted operating profit margin near the bottom of its target range excluding one-time tariff recoveries. Caterpillar also increased its full-year machinery, energy and transportation free cash flow expectation to the top half of its $6 billion to $15 billion annual target range.

Caterpillar reported second-quarter 2026 sales and revenues of approximately $20.5 billion, up 24% year over year and exceeding $20 billion for the first time in the company's history, while its order backlog surged 92% to a record $72 billion. Adjusted operating margin expanded to 21.9% from 17.4% a year ago, and operating cash flow rose 94% to around $5.7 billion. The company raised its full-year 2026 revenue growth forecast to the mid-to-high teens from low-double digits, citing healthy demand across all three primary segments, and said 59% of the backlog is expected to be delivered over the next 12 months. Following the results, analysts raised earnings estimates for both 2026 and 2027, with the Zacks Consensus Estimate now projecting 38% earnings growth in 2026 and 21.8% in 2027. The stock currently carries a Zacks Rank #1, or Strong Buy.

About 86% of the more than 440 S&P 500 companies that have reported second-quarter results beat analysts' estimates, pushing stock indexes to fresh highs and easing concerns that the record rally relies too heavily on a small group of artificial intelligence companies. The index is on course for its seventh consecutive quarter of double-digit earnings growth, with blended earnings up roughly 50%, the strongest growth since the stimulus-driven recovery in 2021. Energy-sector earnings rose more than 147%, driven by higher oil prices linked to the Iran war, while communication services gained around 117%, consumer discretionary 92%, and technology 70%. Upbeat results from Palantir Technologies, Caterpillar, and Walt Disney helped major indexes post their strongest weekly gains since April, and AI spending continued to drive results across sectors, with Amazon shares jumping 15% in one session after cloud-computing sales accelerated and Microsoft adding a record $450 billion in market value. Still, earnings growth remains concentrated, as Alphabet and Amazon accounted for about 71% of the increase in blended S&P 500 earnings since July, and excluding them would reduce growth from about 50% to 32%. Valuations also remain elevated, with the S&P 500 trading at around 28 times trailing earnings, above its 10-year average of 22.5.

Caterpillar reported record quarterly sales exceeding $20 billion and a 73% jump in profit per share, while a $392 million IEEPA tariff recovery boosted adjusted operating margin to 21.9%. The one-time clawback, combined with lower ongoing tariff costs of about $400 million versus a prior $700 million estimate, added 430 basis points to margins and shifted full-year margin expectations toward the middle of the target range. The backlog swelled to $72 billion, up 92% year-over-year, with Power & Energy sales to users surging 33% on data-center demand and lead times for gas engines extending into late 2028. Oppenheimer raised its price target to $1,118 from $1,105, citing acceleration across all segments, while the average analyst target stands at $1,013. Caterpillar lifted its full-year sales outlook to mid- to high-teens growth and expects free cash flow in the top half of its $6 billion to $15 billion range.

Caterpillar reported record quarterly revenue of $20.54 billion and adjusted earnings of $8.17 per share, far exceeding Wall Street estimates, as the artificial-intelligence boom drives demand for heavy equipment in data-center construction. The results sent shares up roughly 10% and underscored how AI infrastructure spending is spreading beyond chipmakers to industrial companies. Chief Executive Joe Creed cited strong order rates and a growing backlog across all three primary segments, with data-center projects becoming a meaningful growth driver. The earnings beat highlights that building AI data centers requires massive earthmoving, power systems, and heavy machinery, benefiting firms like Caterpillar even as tech giants pour billions into expanding capacity.

Caterpillar, Mercury General, and Zebra Technologies each delivered standout second-quarter results that crushed Wall Street estimates. Caterpillar posted adjusted earnings of $8.17 per share on revenue of $20.54 billion, topping consensus by nearly 31% and 24% year-over-year growth, while raising its full-year sales outlook and reporting a record $72 billion backlog. Mercury General earned $3.52 per share, a 95% beat, with sales rising 14% to $1.67 billion, driven by stronger underwriting and higher investment income. Zebra Technologies reported $6.35 per share, a 46% surprise, on revenue of $1.55 billion, and significantly raised its full-year guidance to 14% to 16% revenue growth and adjusted EPS of $20.75 to $21.25.

US stocks closed sharply higher on August 4, 2026, with the Dow Jones Industrial Average and the S&P 500 both ending at fresh record highs. The main driver was robust earnings from artificial intelligence-related companies such as Caterpillar and Palantir, which eased demand concerns. The Dow Jones Industrial Average closed at 54,085.88, up 907.47 points or 1.71 percent. The S&P 500 ended at 7,736.52, gaining 136.02 points or 1.79 percent. The Nasdaq Composite finished at 26,584.99, surging 671.10 points or 2.59 percent. Palantir Technologies shares soared 29.5 percent, their biggest single-day percentage gain since February 2024, after the company raised its full-year revenue forecast. Caterpillar shares jumped 5.6 percent after it lifted its annual revenue growth outlook, fueled by rising demand for power generation machinery and construction equipment amid the expansion of data centers supporting artificial intelligence technology. Caterpillar contributed the most to the Dow's advance, adding roughly 280 points to the index. A roughly 5 percent drop in crude oil prices also provided support, after Qatari officials said diplomatic efforts to resolve the conflict were ongoing, and the US Treasury Secretary stated that a deal with Iran to reopen the Strait of Hormuz could be reached within two days. The decline in oil prices pushed the probability of a Federal Reserve rate hike at the September meeting down to 56.9 percent from 67.2 percent the previous day. On the US economic data front, job openings fell to 7.359 million in June, below the 7.440 million analysts had expected.

The Dow Jones Industrial Average closed up 907.47 points, hitting a record high of 54,085.88, buoyed by strong earnings from artificial intelligence-related companies and hopes for an end to the Iran war, which pressured oil prices and bond yields lower. The S&P 500 closed at 7,736.52, up 136.02 points, and the Nasdaq ended at 26,584.99, up 671.10 points. Tech stocks soared 4.1%, led by Palantir Technologies surging 29.5% after revenue beat expectations and the company raised its revenue forecast for 2026. Caterpillar jumped 5.6%, providing the biggest boost to the Dow, after raising its revenue outlook, driven by AI data center construction. The Philadelphia Semiconductor Index surged 6.6%, extending gains for a fourth day. Meanwhile, WTI crude oil prices tumbled more than 5% after Qatar confirmed that mediation between the US and Iran is ongoing, and the US Treasury Secretary indicated a deal to reopen the Strait of Hormuz could be reached soon. As a result, the yield on the 10-year US Treasury note fell to 4.665%, and investors scaled back expectations for a Fed rate hike in September to 56.9% from 67.2%.

On the 4th, the Dow Jones Industrial Average and the S&P 500 both closed at record highs in the New York market. Strong earnings from heavy machinery giant Caterpillar and data analytics firm Palantir Technologies, along with hopes for a peace deal between the U.S. and Iran, lifted the market. Palantir surged 29.5 percent, while Caterpillar rose 5.6 percent. In currency markets, the yen fell against the dollar and the euro, weakening 0.25 percent to 157.56 per dollar and 0.33 percent to 181.36 per euro. However, it remains significantly stronger than the nearly 40-year low of 163.99 reached before last week's coordinated intervention by Japan and the U.S. In bond markets, crude oil prices fell on expectations of an end to hostilities between the U.S. and Iran, and fading speculation of a Federal Reserve rate hike in September pushed the two-year yield down 6.22 basis points to 4.194 percent, its lowest in about two weeks. The 10-year yield also fell 5.72 basis points to 4.627 percent. Gold futures rose 1 percent as the sharp drop in oil eased inflation concerns, with U.S. gold futures settling 1.5 percent higher at 4,152.60 dollars. U.S. crude futures fell more than 5 percent, with Brent crude down 5.3 percent to 79.36 dollars and WTI crude down 5.7 percent to 75.77 dollars, hitting their lowest in about three weeks.

The S&P 500 and Dow Jones Industrial Average closed at new all-time highs, while the Nasdaq 100 hit a two-and-a-half-week high, driven by strong technology earnings and a plunge in oil prices on hopes of a US-Iran deal. Palantir Technologies surged more than 27% after reporting better-than-expected second-quarter revenue and raising its full-year forecast, and Zebra Technologies jumped over 21% on an earnings beat and raised guidance. Caterpillar led the Dow with a more than 5% gain after its adjusted earnings per share of $8.17 far exceeded the $6.17 consensus. Crude oil fell more than 4% to a three-week low after Qatar said a draft resolution was being circulated between the US and Iran, easing inflation fears and pushing the 10-year Treasury yield down 4 basis points to 4.64%. Weaker-than-expected US economic data, including a surprise drop in June factory orders and a decline in JOLTS job openings, failed to dent the rally.

Wayfair, Caterpillar, and Palantir shares surged following their latest earnings reports and forward guidance. Wayfair jumped after guiding for high single-digit revenue growth in the third quarter. Caterpillar surged as second-quarter earnings blew past Wall Street expectations, easing concerns over power-generation equipment sales to data centers. Palantir shares rose after the company boosted full-year revenue and income forecasts, now expecting $4.89 billion to $4.91 billion in adjusted income from operations, with commercial demand described as otherworldly. McDonald's also rose despite comparable sales slightly below consensus, as adjusted EPS beat estimates.

The Dow Jones Industrial Average surged more than 700 points today, boosted by a sharp drop in oil prices following reports that the United States and Iran are close to reaching an agreement to reopen the Strait of Hormuz. As of 9:19 PM Thai time, the Dow was up 726.32 points, or 1.37%, at 53,904.73. Brent crude fell below $80 a barrel, while WTI crude slipped below $76. US Treasury Secretary Scott Bessent said negotiations could lead to a deal as early as today or tomorrow, guaranteeing freedom of navigation for commercial vessels. Markets also drew support from declining US Treasury yields and strong earnings from Palantir and Caterpillar.

U.S. stock futures pointed higher Tuesday, extending a rally that drove the Dow Jones Industrial Average to a record closing high on Monday. Palantir Technologies stock led premarket gains, rising more than 16% after the data analytics company posted second-quarter results. Nasdaq-100 futures were up 0.7%, while Dow futures added 201 points, or 0.5%, and S&P 500 futures were 0.2% higher. Caterpillar stock was up 6% before the open after its second-quarter earnings beat Wall Street estimates, according to CNBC. Crude prices climbed, with WTI futures settling 1.8% higher at $81.82 a barrel and Brent crude advancing 2.3% to $85.74 after a report of a ship being struck in the Strait of Hormuz.

Caterpillar reported second-quarter results that exceeded analyst expectations, sending its stock up 5.2% in premarket trading. Adjusted earnings per share reached $8.17, beating the consensus estimate of $6.19, while revenue rose 24% to $20.5 billion, surpassing the $19.24 billion forecast. Chairman and CEO Joe Creed noted this was the first time the company generated over $20 billion in sales and revenues in a single quarter. Operating profit climbed 50% to $4.3 billion, and the adjusted operating profit margin expanded to 21.9% from 17.6% a year earlier. Construction Industries led growth with a 35% sales increase to $8.3 billion, driven by higher equipment sales in North America.

Caterpillar shares have dropped 16.4% over the past month and sit 22.3% below their 52-week high ahead of its second-quarter earnings report due on Tuesday, Aug. 4. The industrial giant, increasingly tied to the artificial intelligence trade through data center construction and power demand, faces estimates of $6.25 earnings per share on $19.31 billion in sales. Analysts note that hyperscalers like Amazon and Meta Platforms plan to spend as much as $700 billion on data centers this year, and Caterpillar's energy and power segment, which grew 30% last year, could be a key growth driver as data centers may consume 9.1% of U.S. power by 2030. The pullback may offer a long-term buying opportunity for risk-tolerant investors, though near-term AI sentiment has heightened pre-earnings risk.