Strong Caterpillar earnings lift Dow
Earth-moving equipment maker Caterpillar on Friday reported first-quarter earnings higher than forecast at $1.23 billion, up from $233 million during the same period last year. (April 24, 2006) Credit: Getty
Caterpillar drove the Dow Jones industrial average higher Friday after the company reported a huge gain in first-quarter earnings.
Shares of the world's largest maker of mining and construction equipment rose 2.5 percent after its earnings increased more than fivefold. The company also raised its sales and profit forecast for the year.
The Dow added 4 percent in April, its best month since December.
The Dow rose 47.23 points Friday, or 0.37 percent, to close at 12,810.54. Caterpillar accounted for 21 points of those gains. The company's stock has soared over the past year on booming demand for its products.
"The industrial sector and the manufacturing sector of this country are much stronger than many investors have perceived," said Rob Lutts, president and chief investment officer of Cabot Money Management.
The Standard & Poor's 500 index rose 3.13 points, or 0.23 percent, to close at 1,363.61. The index gained 2.8 percent in April. The Nasdaq composite added 1.01 point, or .04 percent, to 2,873.54. It rose 3.3 percent for the month. Both had their best month since February.
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