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Wall Street shuddered Tuesday, mirroring a risk-off sentiment around the world, as geopolitical tensions and the prospect of slowing economic growth continued to put investors on edge.
Caterpillar beat on both the top and bottom lines. The heavy-equipment maker warned that it sees rising material costs on the horizon.
Caterpillar's shares jumped premarket.
The Dow Jones Industrial Average fell more than 400 points Thursday on trade war jitters.
Caterpillar announced much higher-than-expected earnings for the first quarter of 2017 on Tuesday, and its stock is popping.
Caterpillar is accused of failing to comply with US tax and financial reporting rules in an effort to boost its stock price, according to The New York Times.
Caterpillar beat on earnings but lowered its outlook because of a strong US dollar.
"In our view, $3.25 on $38 billion of sales and revenues is too optimistic considering expected headwinds," Caterpillar said.
Caterpillar lowered its outlook for profit this year when it reported third-quarter earnings results on Tuesday.
Goldman Sachs has placed a buy rating on Caterpillar shares less than a year after telling clients to sell and after a 31% rally in the stock this year.