Associated Press

Caterpillar released earnings Thursday, missing analysts' revenue expectations and reducing its outlook for profits in 2017. The firm's struggles call into question investor enthusiasm for the U.S. economy following the election.

During a call with analysts, CEO Jim Umpleby said that slow growth in places like Brazil and China cut into profits last year, and that he doesn't expect any returns from U.S. infrastructure spending until at least 2018. As a net exporter, the firm is optimistic about border adjusted tax reform, though a projected stronger dollar would mitigate the effects.

(function () { var attempt = 0, init = function(){ if (window.pym) { var pymParent = new pym.Parent("g-caterpillar-01-box", "", {}); } else if (attempt++ & 40) { setTimeout(init, 50); } }; init(); })();

Data:; Chart: Andrew Witherspoon / Axios

Ronnie Moas of Standpoint Research placed a sell rating on the stock, arguing its rise in recent months puts too much faith in the Trump Administration's ability to execute priorities, without factoring in a backlash from trading partners.

Economic risk abounds: A delay or watering down of infrastructure spending, a hastening of the decline in China's economy, or the escalation of trade could hit American profits and deflate investor optimism.

Go deeper

45 mins ago - World

U.S. policy shift will allow taxpayer funding for projects in West Bank settlements

Friedman (L) with Netanyahu. Photo: Menahem Kahana/AFP via Getty Images

The U.S. and Israel will announce tomorrow that they are expanding three agreements on scientific cooperation to include Israeli settlements in the West Bank, Israeli and U.S. officials tell me.

Why it matters: This is a substantial policy shift for the U.S., which did not previously allow its taxpayers' money to be spent in the Israeli settlements.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Obama: Trump is "jealous of COVID's media coverage" Axios-Ipsos poll: Federal response has only gotten worse.
  2. Health: Hospitals face a crush — 13 states set single-day case records last week.
  3. Business: Winter threat spurs new surge of startup activity.
  4. Media: Pandemic causes TV providers to lose the most subscribers ever.
  5. States: Nearly two dozen Minnesota cases traced to three Trump campaign events.
  6. World: Putin mandates face masks.

McConnell: Confirming Amy Coney Barrett will help GOP retain Senate

Photo: Samuel Corum/Getty Images

Senate Majority Leader Mitch McConnell (R-Ky.) expressed no regrets about Judge Amy Coney Barrett's controversial confirmation, telling Politico in an interview that he believes the decision to place her on the Supreme Court just a week before the election will help Republicans retain the Senate.

Why it matters: With a week to go until Election Day, many Republicans are concerned that President Trump's unpopularity could cost them the Senate. McConnell has long viewed the transformation of the federal judiciary through the confirmation of young conservative judges as his defining legacy.