Dow Earnings: More on Caterpillar, Microsoft Results

Earnings Reports Overview - The earnings reports of major companies, including Caterpillar Inc (CAT) and Microsoft Corp (MSFT), are currently under scrutiny as they have recently released their financial results [1] Microsoft Corp (MSFT) - MSFT experienced a significant decline of 6%, trading at $416.03, marking its worst day since October and its fourth loss in five days [2] - Despite beating both top- and bottom-line estimates in its fiscal second quarter, MSFT provided a disappointing outlook for cloud growth and justified increased spending on artificial intelligence (AI) [2] - Following the earnings report, MSFT faced six price-target cuts, with BMO reducing its target from $510 to $500, making it the biggest loser on the Dow [3] - MSFT is also the second most-traded stock in options markets, with a notable interest in the weekly 1/31 420-strike call options [3] Caterpillar Inc (CAT) - CAT's stock fell by 4.3% to $376.12, despite reporting a profit beat for the fourth quarter, as it missed revenue expectations and lowered its sales forecast for 2025 [4] - The stock struggled to break through the $410 level in previous sessions, reflecting ongoing pressure since November [4] - CAT is experiencing its worst single-day percentage drop since September, although it still shows a year-over-year gain of 25.5% [4] - Options traders have shown a preference for calls, as indicated by CAT's 50-day call/put volume ratio of 1.54, which is higher than all other annual readings [5]