It's earnings Tuesday.
Caterpillar (CAT) - Get Caterpillar Inc. Reportbeat earnings estimates on both top and bottom lines, as did McDonald's (MCD) - Get McDonald's Corporation (MCD) Report . Verizon (VZ) - Get Verizon Communications Inc. Report also beat on earnings.
Caterpillar earnings were interesting on a number of front. Firstly, revenue proved that there's a possibility business spending is still high in general, and that interest rates may not have had their way yet on the economy (although they may soon, in which case Caterpillar may not poised for big sales numbers ahead). Secondly, the stock fell almost 7% in pre-market trading, leaving TheStreet's RealMoney stock of the day reporter, Kevin Curran to find out why.
Caterpillar is RealMoney's stock of the day. Find out why macro concerns, mainly relating to elevated costs as a result of tariffs, hurt CAT stock Tuesday morning. Also see what asset managers are saying about business spending, interest rates, and industry, in my newsletter here.
As for McDonald's, the fast food chain posted a stellar quarter, and the stock jumped this morning to the tune of 2.5%. A Morgan Stanley note out last week noted that sales could come in strong, as a supportive macro environment and higher consumer spending, which we saw in American Express (AXP) - Get American Express Company Report earnings, could see McDonald's through. That's exactly what happened.
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