Why Caterpillar stock is down 6%
Caterpillar stock falls as traders focus on rising costs.
Caterpillar stock gained a strong downward momentum after the company released its quarterly report .
The company reported revenue of $13.8 billion and adjusted earnings of $2.69 per share, beating analysts' estimates for both earnings and revenue.
While fundamentals were strong, the market focused on cost constraints that put pressure on margins.
The market is concerned about the negative impact of higher inflation on stocks and business in 2022, so it's not surprising that investors are sensitive to any sign of rising costs.
These concerns have already put considerable pressure on Caterpillar stock today, as the stock is down 6% and currently struggling to stay below the $200 level.