Why the Dow Is Rallying This Morning
The Dow Jones Industrial Average (INDEX: ^DJI) is rising for the second day in a row as the U.S. Commerce Department reported orders for durable goods rose 3% in December. Also, three Dow components reported earnings. At 10 a.m. EST, the Dow was up 75 points to 12,831.
Caterpillar (NYS: CAT) reported strong earnings this morning. Earnings per share were up 60% to $2.32, above analyst expectations of $1.73 per share. Revenue was $17.24 billion, above analyst expectations of $16.05 billion. In early trading, Caterpillar is up 3.5%.
3M (NYS: MMM) also reported earnings before the market opened, with earnings up 5% to $1.35 per share, just above expectations of $1.31 per share. This was above analysts' expectations of $0.33 per share; revenue was $7.1, which met expectations. In early trading, 3M is up 0.9%.
AT&T (NYS: T) reported a $6.7 billion loss, or $1.12 per share. Analysts expected earnings per share of $0.42. Earnings were hit by the breakup fee with T-Mobile, iPhone subsidy expenses, asset impairments, and an actuarial loss on benefit plans. Revenue was $32.5 billion, slightly above analyst expectations of $32 billion. The stock is down 2.1% in early trading.
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At the time this article was published Dan Dzombakholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of and creating a diagonal call position in 3M. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.