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Dow Earnings: More on Caterpillar, Microsoft Results

Both companies issued downbeat forecasts

Digital Content Manager
Jan 30, 2025 at 2:41 PM
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The earnings docket is in focus amid a slew of megacap reports, with a handful of Dow components stepping into the confessional as well. Caterpillar Inc (NYSE:CAT) and Microsoft Corp (NASDAQ:MSFT) are among them, and as both securities tumble after reporting results, now looks like a good time to check in.

Microsoft Stock's Worst Day Since October

MSFT is down 6% to trade at $416.03 at last glance, pacing for its fourth daily loss in five and worst day since October, but a floor at $410 looks ready to contain this pullback. The tech giant beat top- and bottom-line estimates during its fiscal second quarter, but it also issued a dismal cloud growth outlook and defended increased spending on artificial intelligence (AI) despite DeepSeek pressure

The equity attracted six price-target cuts in response, the worst from BMO to $500 from $510. The biggest loser on the Dow today, MSFT is also the second most-traded stock in the options pits with triple the intraday average volume. Most popular by far is the weekly 1/31 420-strike call, where positions are being opened.

Caterpillar's Lackluster Sales Forecast

CAT is also struggling, last seen down 4.3% at $376.12, brushing off a fourth-quarter profit beat after the heavy equipment name also reported a revenue miss and cut its 2025 sales forecast. Caterpillar stock failed to conquer the $410 region in the previous session, which also enacted pressure in November. Despite eyeing its worst single-day percentage drop since September, CAT still sports a 25.5% year-over-year lead.

Over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CAT's 50-day call/put volume ratio of 1.54 sits higher than all other annual readings. This indicates options traders have favored calls over the last 10 weeks.

 
 

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