Diamonds and Dogs

10/16/20

Industrials acting well. Caterpillar (CAT) is up 3% on an upgrade. The analyst expects outlook and earnings to substantially improve beginning in 2021 due to anticipated growth from global reacceleration. The analyst has a price target of $220 a share or 30% upside from current levels.

Transports taking a hit following J.B. Hunt's (JBHT) earnings. J.B. Hunt is down 8% near a one-month low after missing earnings as sales actually rose 4.6% to $2.47 billion. Revenue performance was primarily driven by a 25% increase in revenue per load in Integrated Capacity Solutions (ICS), a 34% increase in the number of stops in Final Mile Services (FMS), a 9% increase in loads in Dedicated (DCS), and a 14% increase in loads in Truck (JBT), partially offset by a 5% decrease in revenue per load in Intermodal (JBI) and 32% decline in fuel surcharge revenue. The stock is still up 50% since the March lows.