by Jared Levy on September 28th, 2010
I mentioned the need for infrastructure in this country a couple weeks ago. One of the companies that could potentially benefit from this would be ole’ CAT tractor … Caterpillar Inc. (NYSE:CAT).
Caterpillar, the agriculture and construction machinery giant, maker of everything from pavers to excavators and even turbines for energy generation, continues on its breakout to the upside after eclipsing its last resistance point of $72.00. Though the stock was down slightly in Monday’s trading, the long-term upside prospects still hold from a technical and fundamental standpoint. The stock was resilient in Monday’s session as the broad market moved lower in late-session trading.
But maybe we need to look at this situation the other way around. The 30 stocks that comprise the Dow Jones Industrial Average have collectively been a barometer for many investors for quite some time. But the fact of the matter is that this index may be somewhat flawed.
Consider this:
- If you were to remove CAT from the Dow, the index would only be up 2.5% year-to-date compared to its current gain of 3.7%.
- The Dow Jones’ stocks are weighted by stock price…