What's going on?

Caterpillar, one of the world�s largest manufacturing companies, continues to dig itself out of a hole after it reported a jump in sales and profits on Tuesday that blew past Wall Street�s expectations � yet again! Following the news, its stock jumped by almost 5%!

What does this mean?

It wasn�t long ago that Caterpillar was struggling with declining revenue and falling profits, but thanks partly to improving global demand for its construction and mining equipment, it reported that its third quarter sales had grown by 24% compared to last year, and that its profits had almost quadrupled in the same period (as its cost-cutting measures continue to pay off). Caterpillar also said for the third time this year that it would earn more in profit in 2017 than it had previously forecasted � 25% more (which is a huge upward revision to its previous forecast). Yowza!

Why should I care?

The bigger picture: Caterpillar is catching the tailwinds of an increasingly healthy global economy.


As a major global supplier of industrial equipment, Caterpillar is often seen as a bellwether for the global economy at large (since there needs to be sufficient demand in the economy if companies choose to build stuff with Caterpillar�s equipment). Tuesday�s results suggest that things are looking good pretty much everywhere: Caterpillar reported increased demand in every place it does business.

For markets: Other companies are soaking up the good vibes too�


A slew of major companies released results on Tuesday that also beat Wall Street�s expectations, suggesting that stronger global economic growth is boosting profits and attracting investors� attention. American conglomerate 3M�s stock jumped by 6% as it reported its best quarterly sales growth since 2011, while shares in General Motors jumped by 3% following news that demand for cars is on the up in both North America and China (and Stanley Black & Decker, McDonald�s and others also did well).