Large, multi-national industrial companies have issued positive forward guidance, potentially lifting the industrial sector exchange traded fund outlook for this quarter.

Over the past week, the Industrial Select Sector SPDR (NYSEArca: XLI) has increased 4.2%, Vanguard Industrials ETF (NYSEArca: VIS) gained 4.5% and iShares U.S. Industrials ETF (NYSEArca: IYJ) rose 3.9%. Nevertheless, the sector has fallen behind the broader market this year, with XLI up 0.2%, VIS down 1.7% and IYJ 2.5% lower year-to-date.

On Tuesday, Illinois Toll Works (NYSE: ITW) revealed that it beat earnings expectations and slightly increased its 2014 guidance, reports Bob Pisani for CNBC.

Illinois Toll Works reveals the underlying strength in the industrials sector. The company dabbles in a broad array of products, including automobiles, commercial food equipment, welding equipment, building materials, testing equipment, adhesives and lubricants, among others. Additionally, the company’s revenues, which 30% is taken from Europe, reveal that overseas growth has not stagnated.

Observers have been worried that slower growth in Europe coupled with an appreciating U.S. dollar would weigh on corporate earnings for large, multi-national U.S. companies.

Meanwhile, United Technologies (NYSE: UTX) revealed an earnings beat by a penny. Sales are keeping pace with expectations, even with a 20% exposure to Europe. The company also affirmed its 2014 guidance.

Additionally, Honeywell (NYSE: HON) raised its 2014 earnings and revenue guidance while Bell Helicopter and Cessna Aircraft parent Textron (NYSE: TXT) also raised its guidance.

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