New York, Feb 3, 2026, 11:54 (EST) — Regular session
- Caterpillar shares climbed 1.7% in late-morning trading, extending gains from Monday’s rally
- Jamie Cook raised the target price to $786, pointing to a strong backlog and clearer earnings outlook
- A Form 144 notice indicated a planned sale of 39,138 shares via Morgan Stanley Smith Barney LLC
Shares of Caterpillar climbed 1.7% to $702.63 in late-morning trading Tuesday, pushing the machinery maker’s rally into a second day.
This matters now because Caterpillar offers a quick snapshot on two key questions traders are watching this week: can heavy industry sustain growth into 2026, and how much of the data-centre expansion translates into orders for engines and power equipment.
Last week’s earnings added fuel to the debate. The company highlighted a surge in generator demand but flagged tariffs that could tack on roughly $2.6 billion in costs by 2026. Joe Creed told analysts orders were up for “prime power” systems, which provide continuous electricity. Still, Jefferies analyst Stephen Volkmann noted that “Better-than-expected sales across business segments were hindered by tariff headwinds, limiting the margin expansion for the quarter.” (Reuters)
On Monday, Truist Securities’s Cook bumped the stock’s price target to $786 from $729, maintaining a Buy rating. She said the earnings report delivered “everything one could hope for” and suggested the company’s 2026 revenue forecast might actually be “conservative.” (TipRanks)
Caterpillar played a major role in the Dow’s moves this week. Its stock jumped $29.84 on Monday, adding about 184 points to the index at one stage, MarketWatch data shows. (MarketWatch)
Separately, a Form 144 notice filed with the U.S. Securities and Exchange Commission revealed a planned sale of 39,138 shares via Morgan Stanley Smith Barney, targeting around Feb. 2. The total market value clocks in at roughly $26.7 million. According to the filing, those shares were acquired the same day through a stock option exercise. (Stock Titan)
Shares of Deere & Company climbed 1.2% on Tuesday, while Cummins Inc. added 2.0% in the same session.
Data-centre power is making headlines in corporate news. On January 28, Caterpillar announced that American Intelligence & Power Corporation placed an order for 2 gigawatts of fast-response natural gas generator sets. These units are destined for a new compute campus in West Virginia, with deliveries lined up from September 2026 through August 2027. Melissa Busen noted the deal signals strong demand for “primary, continuous-duty power at scale.” (Caterpillar)
The rally leaves little margin for error. Tariff costs stand out as a key risk to margins, while any dip in non-residential construction or a halt in data-centre spending might slow order growth right as forecasts climb.
Investors are now eyeing further analyst updates and any new details on tariff relief. The next dividend stands at $1.51 per share, scheduled for payment on Feb. 19 to shareholders recorded by Jan. 20. (Caterpillar)
