NEW YORK ( Real Money) -- Something's not jibing. That conference call Tuesday from Cummins (CMI - Get Report), the engine company -- which was about as negative as you can get -- didn't really translate into declines in a lot of other stocks that should have been affected. For example, why were shares of Wabco (WBC - Get Report), the big truck-braking-and-suspension company, not down on the day? The stock was almost at its 52-week-high coming into the session, for heaven's sake. It should have been clubbed.
Caterpillar (CAT - Get Report), despite endless negativity on its last call, really wasn't down much at all, again confounding those who had expected a second world of hurt put in for this key Dow Jones stock. Yes, Caterpilllar has fallen from $89 -- where the stock was when the company reported -- to $84 Tuesday. But all that decline has done is take the stock back to where it had been seven days before it had lowered the boom on itself. It hasn't gone any further than that. Shouldn't Caterpillar have had another pummeling?
Mining-equipment company Joy Global (JOY - Get Report) did lose 92 cents, dropping from $58.75 to $57.78 -- but, given the run this stock has had in the last 10 days, it should be appreciably lower after the Cummins call. It should maybe be as low as $54 to $55, if what Cummins said about its last quarter applies to the future.
Finally there's Eaton (ETN - Get Report), so related to trucks still, even as the company has diversified into many different electrical processes and controls, especially since the closing of the Cooper deal. What happened there? It finished up on the session, not down, but up 76 cents.What is there to make of this strength in light of the hideous weakness from Cummins, the best-of-breed truck-and-power-engine company? I think some things that went wrong at Cummins this quarter were, indeed, Cummins-specific. I had had no idea, for example, how exposed to India this company is. India was an unmitigated disaster. The call made me want to immunize everyone's portfolios against any company dependent upon India for business. Wow. It was shocking.