Rob Wertheimer of Melius Research spoke on CNBC's "Squawk Box" about Caterpillar's CAT earnings report that came in below expectations. Management also lowered full-year earnings guidance.
Wertheimer said the market is looking for security and stability right now and Caterpillar's earnings miss just adds to the uncertainty.
See Also: Caterpillar Falls After Q2 Earnings Miss
He's also concerned about the increase in inventory, which he sees as a trend in the industry. Tariffs are partially to blame for this issue as it's hard for the management to plan the volume of production. Wertheimer added that Caterpillar had many years of gaining market share in China and several months of losing share.
The stock traded lower by 4.1% to 132.37 at time of publication.
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