New York, Jan 25, 2026, 13:22 EST — Market closed.
- The S&P 500 industrials sector dropped 0.8% on Friday, with the XLI ETF sliding 0.77%
- Caterpillar dropped 3.36%, while Boeing inched up ahead of its earnings report
- The Fed’s decision on Wednesday might shift rate expectations for cyclicals
U.S. industrial stocks closed the week lower, as the S&P 500 industrials sector index slipped 0.8% on Friday. The Industrial Select Sector SPDR ETF (XLI) dropped 0.77%, finishing at $164.22. 1
Industrials matter now as a direct gauge of the economy’s “real” sector — think planes, machines, freight, construction — and they usually move with rates and trade news. This week delivers both, alongside earnings reports that will reveal if order books and pricing remain strong.
Investors are shaking off a volatile start to the year, shifting focus back to earnings and the Fed after politics rattled markets earlier this week. “It’s been a little bit of a short but steep roller-coaster ride,” said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. Meanwhile, Franklin Templeton’s Chris Galipeau warned that with valuations running high, “the earnings bar had better be met.” 2
On Friday, Caterpillar dropped 3.36% to close at $626.62. Boeing, by contrast, inched up 0.29% to $252.15. 3
The mood turned cautious heading into the weekend. The Dow slipped 0.58%, weighed down by a steep fall in Intel shares after the company’s outlook fell short of forecasts. Geopolitical concerns also rattled traders. Jason Blackwell of Focus Partners Wealth noted investors were “pretty good” with current conditions but braced for more “twists and turns” in 2026. 4
Boeing is drawing fresh attention to overseas demand this weekend. The U.S. Commerce Department reported that companies secured $244 billion in foreign government procurement contracts for 2025 with its backing—almost triple the 2024 figure. Boeing’s net orders surged to 1,075 from 377. CEO Kelly Ortberg described the Commerce Department’s support as a “differentiator,” while Secretary Howard Lutnick said the agency remains “laser-focused” on investment and manufacturing. 5
Boeing plans to unveil its fourth-quarter results Tuesday, Jan. 27, with Ortberg and CFO Jay Malave slated to break down the details on a 10:30 a.m. ET call. Watch closely for updates on deliveries, cash flow, and any shifts in production or supply chain discipline. 6
Caterpillar will release its fourth-quarter and full-year 2025 results at 5:30 a.m. CST on Thursday, Jan. 29, two days from now. Investors are focused less on the quarterly numbers and more on whether demand will ease after a strong stretch, and how pricing holds up amid rising customer cost concerns. 7
Rates remain central. The Federal Reserve’s two-day meeting takes place Jan. 27–28, with the policy announcement set for 2:00 p.m. ET Wednesday and a press conference following at 2:30 p.m. ET. While lower rates help reduce financing costs for expensive equipment and aircraft, any sign the Fed may pause cuts could quickly weigh on the most rate-sensitive cyclical sectors. 8
Traders will keep an eye on how the group responds. A strong Boeing forecast often boosts suppliers and competitors alike — Airbus being the clear commercial benchmark — while Caterpillar usually drags along other heavy machinery stocks, given its reach into mining, energy, and construction sectors.
But a trap door remains. If tariff talk heats up again or tensions linked to Greenland flare, risk-off moves from earlier this week could resurface. Any earnings slip from key players might ripple through the sector, especially with valuations stretched and investors firmly in a “show-me” mindset.
The next key dates are close at hand: Boeing reports on Jan. 27, the Fed announces its decision on Jan. 28, and Caterpillar releases earnings on Jan. 29, just as markets reopen Monday and look for direction in the final stretch of January. 9
