Caterpillar bucks broader decline for industrial stocks (NYSEARCA:XLI)

Caterpillar (NYSE:CAT) this week rose 6.1% to defy a broader decline among the biggest U.S. industrial companies.

Shares in the maker of heavy machinery and construction equipment hit a record high on Tuesday after the company’s Q2 results beat Wall Street estimates. Management provided an optimistic picture for the remainder of the year, saying its adjusted operating profit would be at the high end of its previous guidance.

The Industrial Select Sector SPDR ETF (NYSEARCA:XLI), whose holdings include some of the biggest U.S. companies in the sector, fell 1.7% for the week. United Parcel Service (UPS) led the declines with a 3.7% weekly drop. The Dow Jones Industrial Average (DJI) also slipped 1.1% for the week.

Despite the slide in industrial stocks, the group outperformed the broader market. The Standard & Poor’s 500 stock index (SP500) slumped by 2.3% this week, the biggest weekly decline since the first week of March – when the collapse of two large regional banks chilled the market. The Nasdaq Composite (COMP.IND) slid 2.8% as many tech companies lost value.

Stocks sold off after Fitch downgraded the U.S. credit rating earlier in the week. The monthly jobs report on Friday showed that U.S. employers had reduced hiring, a sign that the economy may be contracting. However, wage growth was solid.

RTX (RTX), formerly known as Raytheon Technologies, fell 3.2% in a second straight week of losses. The aerospace and defense contractor dropped 9.4% last week, which was notable for the company’s disclosure that its Pratt & Whitney unit had recalled some jet engines because of a defect.