New York, Jan 26, 2026, 20:13 EST — Market closed
- Caterpillar shares ended Monday up 1.5%, holding steady in late trading.
- Attention turns to Caterpillar’s quarterly earnings on Thursday, with the Fed’s policy decision set for mid-week.
- New figures revealed a boost in U.S. equipment financing for December, fueling optimism about a “soft landing.”
Caterpillar shares climbed Monday, with investors gearing up for the heavy-equipment giant’s quarterly earnings due later this week.
This shift is significant as Caterpillar serves as a key indicator for spending on major equipment. Its forecast arrives amid a busy week filled with earnings reports and a Federal Reserve decision that might reshape rate expectations for cyclical stocks.
Traders are eyeing whether credit remains accessible enough to sustain equipment demand, particularly among buyers who rely on financing despite high interest rates.
Caterpillar (CAT) ended the day up 1.48%, closing at $635.92. After-hours saw it tick slightly higher to $636.29. (StockAnalysis)
The broader U.S. market closed up as investors prepared for mega-cap earnings reports and the upcoming Fed meeting. “It seems like we’re having an expansion in corporate profits and an expansion in the economy,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. (Reuters)
Equipment demand got a boost from a separate report. According to the Equipment Leasing and Finance Association, U.S. companies took on 5.9% more debt to finance equipment purchases in December compared to the previous year, marking the second-highest level ever recorded. ELFA President and CEO Leigh Lytle said, “While we expect some volatility in 2026, all signs point to another year of strong demand and stable financial conditions.” (Reuters)
For Caterpillar, financing often makes or breaks a sale. It can sway a customer to place an order immediately rather than hold off—especially with construction and mining equipment, which usually involve lengthy wait times and hefty price tags.
Caterpillar plans to release its fourth-quarter and full-year earnings Thursday, followed by a conference call at 8:30 a.m. ET. (Caterpillar Investors)
Investors are tuning in for clues on machine demand in construction and mining, pricing power, and if customers continue to invest in engines and power systems linked to data centers and other energy ventures.
There’s a snag. Cyclical stocks can tumble quickly if management grows cautious, if financing tightens, or if the Fed adopts a more hawkish stance than anticipated — and Caterpillar’s shares have barely any margin for error with sentiment already tilted toward “good news.”
Coming soon: the Fed’s policy update on Wednesday, Jan. 28, followed by Caterpillar’s earnings report and conference call on Thursday, Jan. 29.
