NEW YORK, Feb 14, 2026, 13:14 EST — Market is shut.
Industrial stocks in the U.S. snapped higher Friday, lifted by a softer U.S. inflation reading that took some heat off interest rate worries. The Industrial Select Sector SPDR Fund (XLI) tacked on 0.8%, finishing at $174.17.
Here’s the key point: industrials track what’s happening in the “real economy,” with fortunes linked to spending on capital projects, freight volumes, and how much gets allocated to defense. XLI’s most recent sector allocation puts aerospace and defense, along with machinery, at the top, which means the fund reacts quickly to changes in economic momentum and the cost of financing. (State Street Global Advisors)
Trading resumes Tuesday, just after Presidents Day. Eyes turn to Wednesday for the major data drops: U.S. industrial production hits at 9:15 a.m. ET, followed by the Fed’s Jan. 27-28 meeting minutes, out at 2 p.m. ET. (Federal Reserve)
Most major industrials pushed ahead Friday. Caterpillar climbed 2.1%, with GE tacking on 2.7% and Boeing up 1.5%. Honeywell inched 0.6% higher. But Union Pacific slipped 1.3%, and RTX dipped 0.5%.
The consumer price index climbed 0.2% in January, missing economists’ call for a 0.3% increase, the Labor Department said. Compared with a year ago, CPI was up 2.4%. Stripping out food and energy, core CPI registered a 0.3% monthly gain and was 2.5% higher than last year. “For the Fed, this probably doesn’t change much in the near term,” Edward Jones economist James McCann noted. (Reuters)
Still, the market wrapped up a volatile week in the red, weighed down by the influence of big tech. “Large cap tech stocks continue to be an anchor,” said Michael James, managing director at Rosenblatt Securities. With traders scaling back exposure before Monday’s U.S. holiday, trade adviser Peter Navarro, for his part, dismissed talk of softer steel and aluminum tariffs. (Reuters)
Within the group, investors are zeroing in on forward-looking guidance rather than broad sector narratives. Gates Industrial rose 1.6% on Friday after posting fourth-quarter net sales of $856.2 million and putting out 2026 targets: adjusted EPS projected between $1.52 and $1.68, with core sales expected to gain 1% to 4%—that figure strips out currency fluctuations and M&A impacts. CEO Ivo Jurek described himself as “optimistic about our growth prospects in 2026,” but also pointed to an “uncertain demand environment.” (Gates Industrial Corporation)
Honeywell declared a quarterly dividend of $1.19 per share on Friday, set for payment on March 13 to shareholders on record by Feb. 27. (Honeywell)
Caterpillar group president Jason Kaiser offloaded 1,690 shares at $776.70 each on Feb. 12, a recent filing revealed. Form 4 filings track insider moves like these, and they often stand out when a stock is hovering near its highs. (SEC)
If inflation proves stubborn and rate-cut bets are delayed, financing for planes, machines, and large-scale projects quickly gets pricier—leaving the sector’s gains vulnerable. On top of that, unpredictable policy moves on trade or input costs keep manufacturers and transport stocks on edge.
Traders face a short week, with eyes on Wednesday’s industrial production report and Fed minutes for any cues on rate moves — and to see if industrials can keep Friday’s momentum alive.
