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.