3 Stocks Leading the Dow Rally: Caterpillar, General Electric, and JP Morgan Chase

The Dow Jones Industrial Average (NYSE:DIA) is flat today at 11,063, but Capital Goods (NYSE:XLI) are leading the way with a gain of 1.59%.

Caterpillar (NYSE:CAT): Citigroup Analyst Timothy Thein said companies including “Caterpillar Inc. and Cummins Inc. (NYSE:CMI) are the most likely to benefit from a boom in petroleum exploration and production (NYSE:OIH). Increased investment by the oil industry is ‘likely to be felt in some way’ by other engine manufacturers as well,” reported Bloomberg. Caterpillar’s stock is up 2.48%.

Investing Insights: Industrial and Capital Goods ETF: The Top Exchange Traded Fund for Your Investing Watchlist.

General Electric (NYSE:GE) is up over 2% today after engine manufacturer Cummins (NYSE:CMI) popped over 6% after setting 2015 targets of $30 billion in sales (i.e., annual growth rate of 14%) and an EBIT margin of 18%. General Electric has also made some positive business announcements recently. Dow component United Technologies (NYSE:UTX) is also benefitting from the strong industrial outlook.

JPMorgan Chase & Co. (NYSE:JPM): Stifel Nicolaus analyst Christopher Mustascio in a note today upgraded the shares to Buy from Hold after Jamie Dimon, the CEO of the company believes that American banks should discard the Basel Group of Global Regulations. Dimon is in favor of banks having higher capital to absorb losses in times of distress, but he is not in favor of imposing charges on the world’s largest banks. According to Reuters the CEO currently is not expecting any job cuts at the firm. The stock is currently trading at $33.20.

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