New York, Jan 20, 2026, 13:52 EST — Regular session
- Caterpillar shares dropped roughly 3% amid a widespread U.S. selloff sparked by renewed tariff concerns, even as a bullish analyst note was released
- The stock goes ex-dividend Tuesday, so anyone buying after that won’t get the upcoming $1.51 payout
- All eyes now on Caterpillar’s Jan. 29 earnings, as investors scrutinize orders, pricing trends, and demand forecasts for 2026
Caterpillar (NYSE: CAT) shares dipped Tuesday, deepening their slide amid a broad selloff in U.S. stocks and pressure on industrials. By early afternoon in New York, the stock had dropped roughly 2.8% to $629.03, hitting a low of $627.37 during the session.
This matters because Caterpillar serves as a key indicator for global construction and mining. Investors often slash valuations on machinery and equipment firms at the first hint of trade or growth concerns, even before the company issues any updates.
Tuesday’s drop comes just ahead of Caterpillar’s upcoming earnings report, stirring some jittery positioning ahead of the release. Plus, the stock is trading ex-dividend, a factor that can weigh on the price by itself.
Wall Street’s key indexes dropped to near three-week lows following President Donald Trump’s announcement of new tariffs targeting several European nations, injecting fresh uncertainty into an already jittery market. “We think we’ll settle down and realize this is just a negotiation tool,” said Jeff Buchbinder, chief equity strategist at LPL Financial. He added that the tariff moves “have got investors a little bit rattled.” 1
Caterpillar shares were trading without entitlement to the upcoming quarterly dividend. According to Caterpillar’s dividend calendar, the ex-dividend date is set for Jan. 20, with a $1.51 per-share payment scheduled for Feb. 19. Shares purchased on or after Jan. 20 generally won’t qualify for that dividend. 2
Oppenheimer boosted its price target on Caterpillar to $700 from $645, maintaining an “Outperform” rating. The firm cited a “flurry of macro factors” affecting industrial stocks heading into earnings season. Analyst Kristen Owen authored the note, according to GuruFocus. 3
Despite that backing, Caterpillar tracked the sector lower. The Industrial Select Sector SPDR Fund (XLI) dropped around 1.9%. Deere dipped about 0.6%, Cummins slid roughly 2.1%, and United Rentals lost close to 2.0%.
Caterpillar bulls face a threat if tariff discussions turn into real policies that curb demand or push up costs along supply chains, adding strain to cyclical industrial stocks. Another short-term concern: the Jan. 29 report. If orders, dealer inventory, or margins appear weaker than investors currently expect, it could shake confidence.
Caterpillar said it will release fourth-quarter and full-year 2025 results on Jan. 29 at 5:30 a.m. CST, with the report filed through the SEC. Traders are focused on that update and the management’s 2026 outlook as the next major catalyst. 4
