in the futures markets before we heard from caterpillar.31%, and it's not exactly cheap at 18 times forward. it's not a surprise that construction industries was weak as well as resources. the highlight was energy and transportation and the big highlight is operating margins. 20% on an adjusted basis. if you go back to 2017 to 2022, their operating margins were 14%, so they are structurally doing the right things on the margin side, and i think you want to continue to own this as an on shore, reshore play and certainly power. >> steph, thank you very much. stephanie link, we'll see you a little later. >>> in the meantime, keep an eye on shares of super micro computer. they are plunging after the company revealed in a regulatory filing that dy has resigned as its registered public accounting firm. ey, not dy, said that it had questions about the company's commitment to integrity and ethical values in connection with an accounting review. that stock is now down by almost 23%. >> that's never great. >> keep an eye on it closely. that does it f

could be the story. >> you want to do caterpillar?hit cat at all. >> a hundred points. >> caterpillar's actual weakness, and jifm umpleby is fabulous but things have gotten weak. this is more what you expect when the fed is -- fed hurt the economy. dr horton, pause. there's a lot of -- it's not p-a-w-s, that's just my philadelphia accent. there's a pause in a lot of business because they raised rates so much, and then we had a huge back-up in rates after they cuts rates, not unlike 1995. it is true that we have been at 4.2%, thank you to frank holland this morning for the last two years in the bull market, but i would point out if rates hadn't backed up, i think there would be more business being done. i'm surprised that jim did miss. look at that chart. holy cow. >> sequential declines across all basis segments at cat and to your point about the rate and the backup in rates impacting mortgage apps, down five weeks where you had refis down 6%. >> look, and horton, $400,000 homes, it was really bad. look, it was really bad from a basis

taking the axe on the rating of caterpillar.ill have all of the downgrade details when "worldwide exchange" returns. shares of caterpillar down 2.5%. >> announcer: sectornomics is sponsored by sector spdr etfs. how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. >>> welcome back. time for the call sheet. goldman sachs cuts applovin to neutral. >>> buraird is downgrading key neutral. >>> morgan stanley is downgrading caterpillar to underweight. >>> time for the global briefing. u.s. officials believe israel has narrowed down a strike on iran to military infrastructure in response to the tehran missile attack earlier this month. no response that israel will carry out assassinations. the u.s. officials stress israel has not made a final decision. >>> china consumer prices cooled in september as beijing rolls out stimulus measures to revive the economy. producer p

. >>> and the trades on caterpillar on its weaker results.li lilly down 8%, and carvana, as part of the "three stock lunch." "power lunch" will be right back. ♪♪ ♪♪ at state street, we know everyone's trying to get somewhere. ♪♪ take the next step toward your future, by investing in the dow with dia. getting there starts here. >>> its time for a deluxe three stock lunch. it's the thick of earnings season. let's get three names and victoria green is here with us, a cnbc contributor. victoria, welcome to you. let's start with caterpillar, shares off the worst level of the session. before we get your trade, let's bring in seema mody with all the details. >> kelly, this was significant the first tine of a year-over-year decline in four years. inventory levels remain too high, raising concerns that cat won't be able increase prices. barclays says it's a red flag for the bears. analysts blaming higher rates for the slowdown, but shares did bounce off the lows after the ceo said the company is building more capacity in engines for data centers, sayi

investors are selling caterpillar because morgan stanley basically told them to. the bears are tearing at the heavy machinery maker after morgan stanley downgraded the stocker analysts worried cat has reached peak earnings. and after a 3 33% runup, shares could be ready to take a breather. cat is down 22%. and the bad -- 2%. boeing is down $8.35 or more than 22 if after the embattled air are prospace giant said it's going to cut 17,000 jobs. that equals 10 percent of its work force, further delay the launch of the 777x, and they issued a profit warning as the machinist strike drags on. bond market's closed percent if holiday, but with stocks raring to go, so is the floor show and john corpina from the floor of the new york stock exchange and kenny polcari. john, normally this federal holiday would be a snoozer for the markets. volume might be thin, but the bulls are wide awake. what's got them running? >> hey, or liz. yeah, that's exactly it. we've got a quiet market with not a lot of participation, not a lot of volume. that's going to add to the a big influx in v

caterpillar, one of the biggest laggard.aded the name to sell on what they call mounting risk to cat's construction related business. the stock is down 2.5%. boeing is under pressure after announcing plans to cut 10% of its workforce. that's about 17,000 people. remember, the plane maker also warning it's looking at much bigger third quarter losses, weaker sales than what wall street is expecting and pushing back the launch of the wide-body airplane, the 777x until 2026 as the machinists are on strike, now entering the fifth week. nvidia, it's higher today, about 3% from also 3% from another all-time high and up more than 3%. two firms on the street reiterating buy ratings on that stock. shares have rallied more than 170% so far this year. as for the overall macro picture this morning, we did just get in the last hour some comments from minneapolis fed president neel kashkari. not a voter this year but did say that more cuts are justified as we enter the week wondering if, i don't know, maybe they're going to pause. as of ri

before he asenlded to be the head of caterpillar.aw a ton of equipment from emerson. i haven't looked at thang since it launched a hostile takeover for national interest. maybe it's time i revisit it same goes for a.b.b., a swiss giant that makes electrical equipment. i saw their stuff all over the place. all these companies are about creating clean power to run this behemoth and run it safely this is a different kind of technology one you can say is more hostage to the economy like honeywell or carrier. two misunderstood stocks that got pan kaikd earlier today after reporting some confusing numbers. they were both clobbered, especially honeywell, which we own for the charitable trust it's been red hot for restructuring but cold on earnings we're formulating a plan for it. sent you a memo earlier today. but club members, tune in tomorrow of course it's not all tech. we used to be hostage to an organization called opec the organization of petroleum exporting countries. because we were a giant importer of oil even 20 years ago now we'r

. >>> caterpillar reporting, wondering if it's demand for pumping and the other focus on inventory cuts texas instruments on semiconductor, and investors want to hear from the ceo about the broader market and whether he sees it improving in 2025. and whether the election can change its outlook. one bright center will be data centers providing batteries and power needs. earlier this year, cat partnered up with microsoft. wall street will be expecting earnings of $5.31 on revenue of $16 billion when cat reports, frank. >>> we do have more to come on "worldwide exchange," including the one word that investors have to hear today and the stock pick that every investor needs to know. >>> but, key spending trade ahead of the holiday season. >>> for and election day, looking at the trump surge in donald trump's wealth, in what is probably his most scefuucssl business venture. what happens if he takes the white house. >>> and later, two big tech earnings. we have more with "worldwide exchange." at betmgm, everyone gets a welcome offer. so whether you're courtside trying to hit the over... or up

we will hear from caterpillar along with eli lilly later in the morning as well. get the numbers, starbucks "after the bell", oil giant exxon mobil coming out on friday. a big week for earnings, the fitz-gerald group and to bulky fitz-gerald, good to see you, thank you so much for being here, your thoughts on the earnings season so far, any takeaways at the google quarter as well. companies put up good numbers if they got their stuff together companies that don't are getting punished rightfully so i was thrilled to see what google did particularly from the a.i. and enterprise which we talked about very early on people looked at me sideways when i said this is going to be a big deal, here we are. maria: does alphabet corridor last night and the surgeon revenue around cloud nai, does that give you any indication of what were going to hear from the others a.i. linked companies. >> cloud and a.i. is where everything is happening and that's where you want to be any company focused on cloud or a.i. and increased computing power and more efficiently nai for obvious reaso

effect in the caterpillar of one of the tanks, that's when i couldn't help but smile, the tanks kept going and going with a grinding and rumbling noise. the italians looked at all this with wide eyes, speechless from surprise. there's a cozy sale at the megamarket, millions of products at bargain prices, for example, a wi-fi coffee maker. polaris for 17,999 rubles. bdb. entrepreneurs need a new hero who will change the idea of ​​servicing small businesses. for the first time in the country. personal manager from vdb. for businesses of any scale. open business account on wtb.ru and get real support to solve your problems. vtb - we help with deeds. it is customary to invite friends to a birthday. therefore, in honor of the anniversary of russian lotto, among all the winners. we will divide a billion, everyone will get their share, two tickets out of three win, the chances are higher, there are more wins, luck is with us when we are together, buy tickets in branded stores on the stoloto website, at bigfest a cheeseburger for 45 rubles or other products at a bargain price, valentina, val

we got numbers from caterpillar, down in the premarket by 6%.is a miss on revenue, lighter on eps, and the outlook is not great. lisa: weakening demand for construction around the world, but this goes to a debate we've had a maybe they will have in industrial sectors, mining, and other core areas necessary to build out energy infrastructure. why is caterpillar doing so poorly? is this international or u.s.? jonathan: down by about 5%. as an update on stories elsewhere, with your bloomberg brief, dani burger. dani: another earnings result, shares of reddit surging nearly 24% in the premarket. sales and forecast beat expectations. they had already more than doubled in value this year, even before the report. have invested in advertising tech to monetize the large audience, suggesting that efforts are paying off. elon musk's artificial intelligence startup xai is set to be seeking new funding. a source says funding discussions are an early stage and details could still change. elon musk aims to double the computer power, which she claims is already

how about caterpillar? >> weaker than expected results due to lower demand, stuart. lower volume and lower sales. now remember, the ism manufacturing index has been in contraction territory. a manufacturing recession in the last 2222 of the last 23 -- 22 of the last 23 months. people feel like this manufacturing sector is weak and a recession, caterpillar feeling. that's. stuart: kraft heinz. >> near a 3-month allow -- low, sales are falling short basically on both volume and a mix of pricing. they're highlighting a lot of weakness in north america as well. stuart: a lot of stocks are down including super micro. what? 30%? >> wow. stuart: what happened? >> so their auditor, ernst and young with, has resigned in a filing. this is the company that the doj came out and said they were investigating the company's financials. ernest and young coming out and saying that they have worries about the company's commitment the the integrity and ethics. so this is a huge accounting issue and never good when ernst & young, your auditor, is saying we're pulling out. stuart: not goo

so caterpillar, a huge focus, a dow component.ve seen outperformances in certain retailers that have, poesh y exposure and canada goose. all of that due in part to wells fargo downgrading each of those names and they explicitly mentioned for names like canada goose some of the lingering macro concerns in china. yes, it's been a tailwind as of late and can they continue, ty? i know you'll talk about the china trade later on. >> we will, indeed. thank you very much. >>> shares of boeing meantime falling after preannouncing a huge third quarter loss of shares this year because of quality problems and profitability issues and the risk of a prolonged labor struck. it's already into the next week. one of our next guests downgradeded it to a sell, but the other one says there are they reasons to buy right now. joining us are matt acres and richard saffron, senior aerospes and defense analyst at seaport global securities. matt, let's begin with you to make the bear case here and then we'll hear from mr. saffron on the other side of the ar

let's move along to caterpillar.t to 10k trades who always guesses and guessed our chart today. that was the first mystery chart. shares are hitting an all-time high. investors are watching construction outlook in the u.s. they have pricing in maybe demand weakness to contemplate. you like this one on a fed pause. why? >> yes. we actually are holding this one also on our high conviction list. part of the reason is that we could theoretically be going into a slowdown, but there's still enough momentum, as you can see, from the hotter-than-expected inflation and the labor market. even if we do go into a slowdown, there is still going to be a lot of benefits from lower rates and pent-up demand in the industries. industries tend to do well when we get to that final rate pause. even if it is a short rate pause, we think that caterpillar is actually going to continue. they're a big player here, and they should benefit from continued activity that will, you know, sort of get that pent-up demand going. >> when i see the way

. >> we've got costumes like a caterpillar, a cow? is that elvis?that's taylor swift. >> oh, that's taylor swift. okay, there we go. a football player get a zebra. oh! >> oh, those babies are adorable. >> why do they have their halloween costumes before i do? they're new to this world. >> well, you have one at least. yeah, on our show. >> okay, finally, to the countdown to halloween right here on world news now. >> it's one of our favorite holidays for years, including back in 2010 when the situation and the facebook. >> yes, that was just getting going. six years later, we really raised the bar with kendis gibson and diane macedo, with themes and costumes. hamilton and wicked now coming out in theaters defying i forgot diane can sing. >> she's got such a skinny. yeah, last year was definitely one for the books when we did our own s ♪ ♪ >> announcer: it's "live with kelly and mark!"

we also own caterpillar, as you know that's been on fire as of late we removed deere about six monthsat decision we're bullish on industrials we like the caterpillar play >> fcx this week you go around and down the list of sectors, you're like, record high, record high, all-time high, and materials falls into that group >> we saw a pop because of the china play that's mostly a copper play. incredible dividend growth they care about their shareholders, special dividends, share buybacks i don't expect the copper to be a tomorrow story but a long-term thesis >> how about the market in general? i asked greenhaus whether we should expect ramped up volatility i mean, the election feels like it's still out of view a little bit because we have to get through mega cap earnings first, and that's going to take the tunnel vision of this market then the election looms on the other side >> volatility should spike as we get closer we know that from '16 and '20. the volatility can continue into the end of the year because the uncertainty of what the fed will do next year, are they going to keep this

caterpillar down 1.7%. let's end on a bright spot, wells fargo trading at an all-time high up seven days in a row gaining 15% over this time, the longest streak going back to make. last week, they put up a good quarter where they missed sales slightly but beat earnings. clearly, investors liking what they are seeing in wells fargo. katie: abigail doolittle, thank you so much. a shakeup is brewing over at southwest airlines. elliott management has called for a special shareholder meeting at southwest officially kicking off the first u.s. to fight since 2017. it is calling the meeting so fell investors can vote on new board nominees. they have nominated eight directors to the southwest board seeking to replace eight incumbents. we are joined by crystal see. it seems aggressive. what is the southwest response? >> southwest put out a statement . this is hot off the press. they say they have made every effort they can to reach a constructive resolution with elliott. i am sure elliot would probably say the same t

i was looking at a chart of caterpillar and john deere and if you look at, you know, caterpillar's kind of been stuck. john deere trades like a tech stock. if you look at a three-year cha chart, it's up three times they're doing things better, i'm not leaning on them in terms of being critical of their business, i just think that this is what we've seen in this stock market it wouldn't be extraordinary, we have seen extraordinary moves that sometimes have not been related to fundamentals, but the market itself. >> when you make a call out ten years, it's -- who is going to remember the call, if he's wrong? right? i mean, making call on ten years. but historic little -- >> itimpults inside knowledge that nodoesn't exist. you can see out three the, four months if you can see what's happening in 2027, you might want to keep that to yourself but it's the nature of wall street >> and historically, markets go up on average 10% or roughly there abouts, 10%, 11%, since the beginning of markets, on average. >> 3% a year, just for inflation. >> yeah, yeah. >> depending on where inflation is going

it was one of the most popular german. caterpillar of one of the tanks, that's where i not in a quarter of an hour i noticed a defect in could not help but smile, the tanks went and went with a grinding and roaring. the italians looked at all this with wide eyes, having lost their surprise, the gift of the evening. still thinking about the ideal home? is it time to switch to domklik to buy an apartment in a new building or secondary market or build your own house on a mortgage? choose what everyone will like. on domklik, everyone will find housing for himself. we still have unlimited social networks, messengers, calls from berp. all for 349 rubles. Сpermobile.

. >> caterpillar on the list rate cuts more construction, caterpillar is the biggest construction manufacturergood dividend story with like evidence for the past 30 years year after year to increase their dividends. charles: tumor names on the list as well. >> we feel. >> i know you like home depot restoration hardware as a proxy anyone who's been in the store knows that the proxy but the home depot is for middle america the fixer-upper and professional contractors. >> absolutely professional contractors hits the nail on the hub and with rate cuts we will see improvements and housing projects and those home depot customers and their sticky customers and we agreed going down in the home equity line of equity when using opera renovation for that reason. charles: we seen heloc loans go up until after the job super but imported under before then we saw spike in their a big spike in refinancing that a lot of that money may be going back, it sounds great, 30 seconds left is there anything that worries you at all. >> absolutely we spoke about the concentration in the geopolitical are very concerning

>> caterpillar, for more. obviously very economically sensitive.at the chart, though, of the chart over the last couple years. lower left, upper right, in a meaningful way. trading like a tech stock. multiple is reasonable, but you don't really have the eps growth or the revenue growth to back it up. and if the economy is slowing the way i think it is, i think you're going to first start feeling it in a name like caterpillar. the stock has been amazing. valuation is compelling, but this is what i want to watch. >> julie, which are you watching? >> ah, on halloween, which is coincidentally, my birthday -- >> ah. >> i don't think surprises people at all. >> interesting. >> when they meet me and definitely when i'm mad at them, it doesn't surprise them, but lemaitre is a small cap business, really nice profitability, expanding margins, dividend. it's really well positioned and i'm curious to see what they say about the health care market, which has been pretty choppy. >> dan? >> ah, on october 31st, that would be halloween, also -- >> boo. >> and juli

and one thing that i looked at this morning was the intersection of a company called caterpillar.management, obvious, they always have a lot of reasons when this kind of stuff happens. but one thing that stood out bigtime is that we're not building in america. we don't build things in america that much, right? at least not, you know, listen, you get an occasional tall building in new york city, that kind of stuff. but i think the prime example, for instance, going into this third quarter, structures, they continued their long retreat. negative retreat. residential investment, we know that that really continues to swoon. and you wonder why because we, everyone keeps saying we have a housing shortage. now on the consumption side, again, significantly higher than consensus. and then we had some gains in intellectual property, but those were smaller than we thought. you think about the mag. -- mag 7, you think about technology, intellectual property, i thought, was a negative surprise. another surprise, government spending. [laughter] it just, it continues to cast a huge shadow to ove

and when snails are caterpillar's come to feed on their leaves, plants can't run away. despite those limitations, green and growing, things still actively communicate with their environment according to causing sleep . ok? the biologist studies the secret lives of plants, the spun nonsense. the interesting thing about plants is that they can do the same things we can, but in a very different way. these interactions takes place on a chemical level. and in order to observe them, you have to look or smell very closely, or carry out complex experiments and it's mysterious sleep. i says that although at 1st glance they appear pretty helpless against past plants have evolved ways to cope with them. the southern european spa burge, for instance, deploy, is a kind of chemical weapons in a targeted way when it's an index quote. and if an insect starts chewing on the plan, it releases this milky south that sticks to the insect smells parts and then it can no longer feed on the plan and kind of push mountain. yep. and if the milky sap is exuded in large quantities, if it can even coat the insec

can i say your caterpillars coming down? but once you get here, you become a butterfly and if you need to leave this place, at least you have just experienced. and so people out there that, you know, the, there is a place where you become what you want to become. and that's here. and you know, there's a whole community that will support any idea that anybody has the my kids are you know, i don't, i don't have them right now. my associates a jury tongue. i lost, i still can't see my kids. so they're, i mean, it is very self 7th and low whenever, whenever i see my kids again, you know, when they asked me and asked, what were you doing this whole time? no, that's what i've been doing all the time. i'm is, i'm 11. i'm actually happier, you know, i, i can be who i am and i get judged by that for me. you know, uh, i don't seem to the hell here, you know, and why would i leave and put myself in a spot where i'm going to be homeless there. right now. i'm homeless. i have a roof of my food in the cabinets, you know, stuff that you dr

when i say your caterpillar's coming down, but once you get here, you become a butterfly and if you need to leave this place, at least you have just experienced. and so people out there that, you know, the, there is a place where you become what you want to become. and that's here. and you know, there's a whole community that will support any idea that anybody has the marquez or you know, i don't have them right now. my associates a jury trial in alaska seal. i can see my kids, so they're 18. i mean, it is very, so, 7th and low whenever, whenever i see my kids again, you know, when they asked me and asked, what were you doing this whole time? no, that's what i've been doing all the time. i'm is, i'm 11. i'm actually happier. you know, i, i can be who i am and i can't judge by that for me. you know, uh, i don't seem to the hell here, you know, and why would i leave and put myself in a spot where i'm going to be homeless there. right now. i'm homeless. i have a roof over my food and the cabinets, you know, stuff that you drink, i have friends. good leader. we're based here. i give you may,

unitedhealth, goldman sachs, caterpillar, dow stocks, all up, taken together they add 225 points to thel average. the agriculture department is under investigation in their handling of the deadly boar's head listeria outbreak. what exactly is being investigated? >> reporter: this is an internal investigation launched by the usda office of inspector general and the office is acting did federal and state investigators respond appropriately to years of reports of unsanitary conditions at the boar's head factory in virginia. this follows chris's him from richard blumenthal among others that the usda failed to address these reports of serious problems. insect infestation, dirty equipment, leading up to this year's deadly listeria outbreak, the largest listeria outbreak in a decade. blumenthal wrote yesterday, quote, the usda took no action allowing boar's head to continue business as usual at its unsanitary virginia plant despite finding repeated serious violations. the virginia plan should have been shut down years ago before people got sick or died from listeria. as you recall ten people d

caterpillar, goldman, ibm, microsoft, united health. dow stocks and they're adding 189 points to the dow, which is up over 00 points as w. apple's new operating system could help people stay in touch during milton, even if there's no wifi or cell phone service. ashley, house does this work? ashley: pretty cool. iphone users can stay in touch with friends and family via satellite messaging as long as they update to ios18 ahead of the hurricane. if you don't you can do it on iphone 14 models or later. and be outside with the clear view of the sky and horizon. that's because it's a satellite but what's in store, you can send apple messages or sms messages and share your location using the find my app via satellite. satellite messaging feature also available we should mention to google mix el 9 owners and hotters say this iphone satellite messaging peature has been an absolute lifeline for resident miss north carolina dealing in the wake of hurricane helene. stuart: thanks, ash. mark tepper, you think this could be something of a game chang