Caterpillar, Deere on Different Roads With Investors Lately -- WSJ

By Bob Tita

Caterpillar's strong generator business with AI data centers made it the envy of the machinery industry over the last year as the company's shares soared with high-flying tech stocks.

But decent third-quarter sales and profit from the construction and mining equipment maker on Thursday were brushed aside by jittery investors. The company's shares dropped more than 9% Thursday in a sell-off of stocks with exposure to the AI sector. Caterpillar, which has fallen more than 20% in the past month, was down about 4% Friday.

Rival machinery manufacturer Deere, which ironically has for years tried to attract more tech-focused investors with its automated farming software, has avoided the AI carnage. Deere's shares are up about 45% since the start of the year. Investors have piled into Deere on the expectation that a long slump in the U.S. farm equipment market will ease next year and farmers will start buying more Deere tractors again.

Deere is up about 1.5% on Friday.

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October 30, 2026 14:37 ET (18:37 GMT)