The Past Week Has Been Rough on Industrial Stocks

The past week has been rough on industrial stocks. They have taken the brunt of the pain from a raft of unpleasant economic data, including slow jobs growth and weak regional manufacturing data. A possible deceleration in China is also weighing on the sector, as much of the growth in the sector these days depends on Asia. Caterpillar (CAT) has fallen 10% in the past five days, versus a drop of less than 4% for the S&P 500. Some of the news is sector-specific: Mining equipment maker Joy Global (JOY) cut guidance on May 31, helping sink shares of numerous industrials. But while Caterpillar’s has accelerated in recent days, the stock has lagged for awhile. After powering through the early part of the recovery from the recession, Caterpillar has had less success in recent months. In the past three months, shares are down 25% and in the past year, the stock is down 18%. Source: barrons.com