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CATERPILLAR STOCKS FALL ON RATING DOWNGRADES -

27-Apr
20:50 IST

Caterpillar’s stock is currently trading at 112.47-lower by 1.38% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 1.70%. The stock has pared some of its earlier losses after the opening bell.

Morgan Stanley downgraded the heavy equipment maker’s stock to underweight from equal-weight. The investment bank also lowered the price target of Caterpillar to $93 per share from $107 per share. Morgan Stanley downgraded the heavy-equipment maker’s stock, as it sees risk from a possible multi-year downturn in non-residential construction, among other factors. In addition, the investment bank also sees historically weak crude prices and falling mining commodity prices to weigh on Caterpillar’s stocks.

Morgan Stanley expects the potential for all three of the company’s segments to fall further in the next year. The investment bank lowered its financial year 2020 and 2021 EPS estimates by about 20% and 40% respectively. The heavy equipment maker is scheduled to report its quarterly earnings before the market opens on Tuesday. Stocks of Caterpillar have fallen about 24% Year-to-date.

On the technical front, the RSI is currently at 47.88% and suggests that the market can move in the downward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger bands and is heading downwards.

Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit target.

 

TRADE SUGGESTION- LIMIT SELL AT 112.80  TAKE PROFIT AT 111.00 STOP LOSS AT 113.70

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13-Apr
20:31 IST

Caterpillar’s stock is currently trading at 114.59-lower by 8.35% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 1.94%. The stock has continued falling after the opening bell.

Bank of America downgraded the heavy equipment maker’s stock to underperform from neutral with a $115 per share price target. The investment bank downgraded stocks of Caterpillar citing that weakness in the heavy equipment maker’s energy business is a problem that is not going away. Bank of America further said that mining and energy shares are signaling another severe capital spending in two of the heavy equipment maker’s most important end markets.

The investment bank also said that dealer sales are expected to get worse before they get better as construction equipment dealers started getting more negative. The heavy equipment maker is scheduled to report its quarterly earnings before the market opens on 28th April. Stocks of Caterpillar have fallen about 22% Year-to-date.

On the technical front, the RSI is currently at 48.93% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger bands but is heading downwards.

Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit target.

 

TRADE SUGGESTION- LIMIT SELL AT 114.70  TAKE PROFIT AT 111.70 STOP LOSS AT 116.20

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03-Apr
23:43 IST

Caterpillar’s stock is currently trading at 139.28-lower by 0.69% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 0.88%. The stock has pared some of its losses after the opening bell.

The heavy equipment maker’s stock fell on Wednesday after Deutsche Bank downgraded it to hold from buy. The bank also slashes its 12-month price target on Caterpillar to $128 from $152.

Deutsche bank analysts noted that Synchronized global growth has collapsed, the China Land Cycle is rolling over, Europe is slowing more than expected and the US is oversaturated with construction equipment. Each of these factors alone is powerful drivers of Caterpillar’s earnings, but together this synchronized slowdown will not only guide to a negative earnings revision cycle, but also make 2019 the cyclical peak.

Caterpillar shares are currently down 13% from their 52-week high of $161. The heavy equipment maker’s stocks had rallied by 10% in 2019 through Tuesday’s close.

On the technical front, the RSI is currently at 61.71% and suggests that the market can move in the downward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands but is heading downwards.

 

TRADE SUGGESTION- LIMIT SELL AT 139.40 TAKE PROFIT AT 138.60 STOP LOSS AT 139.80

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