Caterpillar Inc (CAT.N) shares rose 4.4% on Friday, closing at $598.41 and finishing just shy of $600 after touching $599.60 in the session. The heavy-equipment maker opened at $577.59.
The gain puts Caterpillar in focus before the next U.S. session, with investors shifting from year-end positioning to a data-heavy January. The employment report due Jan. 9 and the consumer price index on Jan. 13 are among the releases that can swing expectations for Federal Reserve rate cuts; futures markets show little chance of a move at the late-January meeting and nearly a 50% chance of a quarter-point cut in March, Reuters reported. 1
U.S. stocks opened 2026 on Friday by snapping a four-session losing streak, with Caterpillar and Boeing among the biggest boosts to the Dow, Reuters reported. Joe Mazzola, head of trading & derivatives strategist at Charles Schwab, described a “buy the dip, sell the rip” mindset — buying pullbacks and selling rallies. 2
On the brokerage side, Wolfe Research raised its price target for Caterpillar to $670 from $470 and reiterated an “outperform” rating, MT Newswires reported. A price target is a broker’s estimate of where a stock could trade over the next year. 3
Technically, the $600 level is the next hurdle. Round numbers can act as resistance — a spot where sellers step in — until the stock clears it decisively.
Caterpillar often trades as a proxy for the industrial economy because its sales hinge on construction, mining and energy projects. Investors will look for fresh signals on dealer inventories and pricing — whether the company can hold price increases without sacrificing volume.
Macro cross-currents matter here. Higher borrowing costs can curb equipment purchases, while a more dovish Fed stance can lift cyclical stocks by lowering discount rates used in valuation models.
But the set-up cuts both ways. A hot inflation number or a weaker jobs print can revive worries about growth or rates, and Caterpillar tends to feel that turn quickly when risk appetite cools.
Caterpillar is expected to report earnings on Jan. 29, with analysts forecasting $4.52 per share, according to Nasdaq. Investors will watch the outlook for 2026 demand and margins for clues on whether Friday’s jump can hold. 4
