Exchange traded funds following the industrial sector got mixed results from two key holdings on Friday: Caterpillar (NYSE: CAT) and General Electric (NYSE: GE).
Caterpillar shares slipped nearly 7% in premarket trading after the company reported second-quarter profit of $1.52 a share, or $1.72 a share excluding expenses related to the acquisition of Bucyrus. On average, analysts were looking for earnings of $1.70 a share.
Also Friday, GE rose 2% after the firm delivered better-than-expected earnings.
Both stocks are also in the Dow Jones Industrial Average.
“General Electric positions itself to be a leader in all markets in which it competes,” investment researcher Morningstar wrote in a recent note on GE. “After shedding underperforming businesses during the past few years, the firm has energy infrastructure square in its sights. We believe GE will emerge as a leader in the power infrastructure market, which will be the backbone for the firm’s growth.”
GE is a top holding in Vanguard Industrial ETF (NYSEArca: VIS), iShares Dow Jones US Industrial (NYSEArca: IYJ) and Industrial Select Sector SPDR Fund (NYSEArca: XLI). Meanwhile, Caterpillar represents 5.4% of the Industrial SPDR.
Industrial Select Sector SPDR Fund
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.