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.

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

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

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

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

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!