Company Description: Caterpillar, Inc. manufactures construction and mining equipment; diesel and natural gas engines; and industrial gas turbines. It operates its business in Machinery, Engines, and Financial Products lines. Machinery line involves in the design, manufacture, marketing, and sale of construction, mining, and forestry machinery, such as track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, telescopic handlers, skid steer loaders, and related parts. It also offers logistics services for other companies. Engines line offers engines for the company’s machinery; electric power generation systems; on-highway vehicles and locomotives; marine, petroleum, construction, industrial, agricultural, and other applications; and related parts. Financial Products line provides a range of retail financing alternatives to customers and dealers for Caterpillar machinery and engines, solar gas turbines, as well as other equipment and marine vessels. The company also offers various forms of insurance to customers and dealers to help support the purchase and lease of equipment, as well as invests in independent power projects using Caterpillar power generation equipment and services. It markets its products through various distribution centers and dealers in the United States and worldwide. The company was formed as Caterpillar Tractor Co. in 1925 and changed its name to Caterpillar, Inc. in 1986. Caterpillar, Inc. is headquartered in Peoria, Illinois.

Our Analysis: The shares of Caterpillar, Inc. 'CAT' are a component of the Dow Jones Industrial Average which I have rated as moving lower from its current levels. The shares of 'CAT' closed below a key support level on heavier than normal trading volume. The shares of 'CAT' should continue to move lower and test $53.78/share, the point from which they gapped higher on the open of trading on August 31st of this year. If the shares of 'CAT' close below that level then they should continue to move lower and test $50.82/share, the point from which they gapped higher on the open of trading on July 19th of this year. I see upside resistance on the shares of 'CAT' at $55.19/share, and have set our stops accordingly at $55.66/share.