Why Heavy Equipment Stocks Are Under Pressure Today
Wall Street is running the numbers on the tariffs, and the impact is not good for heavy equipment manufacturers.
Shares of Caterpillar (NYSE: CAT) fell by as much as 7% and Deere (NYSE: DE) by 4% after both companies were hit by downgrades, and Toro (NYSE: TTC) fell as much as 5% in sympathy. The stocks all rallied into the close and were all down about 2% as of 3:30 p.m. ET.
Heavy equipment manufacturers figure to get hit by tariffs both on the supply and demand sides. The massive tractors, construction, and agricultural equipment they make requires a lot of steel and other raw materials that are subject to tariffs, and their high-priced finished goods sell best when customers are flush with cash.
Source Fool.com
