Caterpillar Inc. (CAT), Alcoa Inc (AA): Will Dow Jones Industrial Average (DJI) 15,000 Hold Today?

Although we don’t believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes — just in case they’re material to our investing thesis.

Since first hitting 15,000 back in May, the Dow Jones Industrial Average (INDEXDJX:DJI) have traded on either side of the milestone level, as optimism over the economic recovery has been tempered by concern over interest rates and heightened geopolitical tensions in the Middle East. This morning, though, investors appear to be focusing more on the positives of the global economy, with many commentators citing more optimistic assessments of economic conditions in China and Europe as reasons to be bullish. By 10:45 a.m. EDT, the Dow Jones Industrial Average (INDEXDJX:DJI) was up 80 points, climbing back above the 15,000 level.

Caterpillar Inc. (NYSE:CAT)

Among Dow Jones Industrial Average (INDEXDJX:DJI) components, the biggest gainer is Caterpillar Inc. (NYSE:CAT), up 2.4%. China reported that exports grew 7.2% in August, which was more than economists had expected. Caterpillar Inc. (NYSE:CAT) in particular has had its future prospects hurt by the slowdown in China, having marked down its long-range earnings estimates in future years as a result of the sluggishness of the Chinese economy. More favorable news from China, however, raises hopes that the slowdown in growth there could reverse itself and help bolster sales of construction and mining equipment, helping Caterpillar Inc. (NYSE:CAT)’s prospects.

Alcoa Inc (NYSE:AA) has risen 1.5%, likely for much the same reason, as the aluminum market has been sensitive to Chinese demand in the past. One interesting initiative that the company started last week that didn’t get much attention, however, was its decision to combine its aluminum-scrap recycling unit with its packaging-market aluminum-recycling business to create a single Alcoa Inc (NYSE:AA) Recycling division. Given the oversupply in the aluminum market, it might seem counterintuitive to encourage recycling initiatives that by their nature reduce the need for new aluminum production. But if Alcoa Inc (NYSE:AA) can capture more of the recycling market, it can potentially provide more value to its customers. Already the company has worked with The Boeing Company (NYSE:BA) to boost reuse of custom aerospace aluminum alloys in aircraft manufacturing; it is expected that 8 million pounds of reusable aluminum will be recycled. That will save The Boeing Company (NYSE:BA) costs and help improve Alcoa’s standing as the aircraft maker’s go-to supplier for aluminum in the future.

Finally, Johnson & Johnson (NYSE:JNJ) has gained about 0.1% as investors continue to assess the ramifications of reports that it’s planning to sell off its clinical-diagnostics division. Until now, Johnson & Johnson (NYSE:JNJ) has resisted the trend toward breaking off pieces of its health care conglomerate business, choosing instead to try to be a one-stop shop for all things related to health care. But with a sale potentially raising $5 billion, investors may end up looking at the potential move as helping Johnson & Johnson (NYSE:JNJ) refocus on its core businesses and address some of the quality-control issues and other problems that have plagued the company in recent years.

The article Will Dow 15,000 Hold Today? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!