New York, Feb 3, 2026, 05:03 EST — Premarket
- Caterpillar shares climbed 5.1% on Monday and were steady around that mark heading into Tuesday’s open
- A major U.S. factory survey returned to expansion territory, boosting cyclicals
- Price-target increases and tariff concerns have resurfaced ahead of the session
Caterpillar shares hovered near unchanged in early premarket Tuesday, following a 5.1% surge to $690.91 the day before. The sharp gain has pushed the industrial giant back into focus as a busy week of U.S. data looms.
The company’s stock typically moves as a stand-in for construction and mining spending, but expectations are steep following a solid rally. Policy news keeps stacking up, and with key economic data delayed, investors have zeroed in on the clearest signals available.
Monday brought a key indicator: the Institute for Supply Management’s manufacturing PMI ticked up to 52.6 in January, staying above the 50 mark that signals growth. Susan Spence noted that “some buying appears to be to get ahead of expected price increases.” Meanwhile, Mark Streiber at FHN Financial cautioned that tariffs continue to “freeze small businesses.” (Reuters)
Truist Securities analyst Jamie Cook raised her price target on Caterpillar to $786 from $729, maintaining a buy rating. She suggested the company’s 2026 revenue forecast might be “conservative,” highlighting a “massive backlog” of unfilled orders. (TipRanks)
DA Davidson’s Michael Shlisky bumped his target to $650 from $569, maintaining a neutral rating. He highlighted data-center demand as a boost for 2026 but noted that margin pressures and uncertainty over tariffs might limit further gains. (TipRanks)
Caterpillar posted record fourth-quarter sales of $19.1 billion last week, the highest in its history for a single quarter, pushing full-year sales to $67.6 billion. CEO Joe Creed said the company is entering 2026 with “strong momentum” and a record backlog. (Caterpillar)
The push for industrial stocks isn’t limited to Caterpillar. Deere & Co. and Cummins Inc. also closed up in the previous session, albeit with more modest gains.
Still, the rally tightens the margin for error if the PMI rebound doesn’t last or pricing power slips. Caterpillar projects about a $2.6 billion tariff impact in 2026, and traders are cautious about the margin pressure if volumes decline. (Reuters)
Investors face uncertainty on the labor front. The Bureau of Labor Statistics announced the January jobs report, originally set for Feb. 6, will be postponed due to the partial U.S. government shutdown. A spokesperson, Emily Liddel, said the release will be rescheduled once funding is restored. Former BLS commissioner Erica Groshen told Reuters the agency’s staff was “already under extreme pressure” before the shutdown hit. (Reuters)
