Caterpillar Inc. Indicates Potential end to U.S. Recession

Caterpillar Inc. (CAT), which is often considered a good indicator of the market, was one among many U.S. Corporations who were forced to engage in massive layoffs. The heavy machinery company said it would cut 20,000 jobs during the first quarter of 2009. After this announcement, its shares fell 10%.

Due to the fact that much of Caterpillar’s buyers are outside the U.S., their decisions to hold layoffs could indicate “the U.S. economy [emerging] out of recession by the end of this year,” according to Jeffrey Kleintop, chief market strategist for LPL Financial. “But the global economy may remain mired into 2010.”

Caterpillar was one among 14 factors suppressing the Dow Jones Industrial Average. Another dawdler was General Motors Corp. (GM), which will lay off 2,000 more workers in the near future, according to The Wall Street Journal’s website.

The Dow Jones recorded earlier gains last Friday, only to fall 21.84 points to 8,055.82.

The layoffs expected today across the nation are expected to increase unemployment expectations among economists to 9% which is, according to U.S. market strategist, Marc Pado, a “deeper hole from which we must emerge through.

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