There is a lot going on with portfolio stocks this morning, and I want to give readers an update. I am not taking any action in this alert.
Caterpillar (CAT) reported third-quarter earnings, with net income of $927 million, or $1.40 a share. Revenue rose 9% to $11.44 billion. Analysts were expecting net income of $1.43 on revenue of $11.19 billion. For the full year, the company said it now expects to earn $5.20 to $5.60 a share vs. the previous estimate of $5.30 to $5.80. While the numbers are a little disappointing, Caterpillar's stock is incredibly cheap, so I am not selling at these prices.
In other news, McDonald's (MCD) also reported third- quarter earnings, although the company had already preannounced. For the quarter, the company earned 83 cents on revenue of $5.9 billion. The company benefited from strong sales overseas, as well as the weak dollar. McDonald's remains one of my favorite stocks.
Lastly, it was announced that NYSE Euronext (NYX) will be added to the S&P 500. The stock is up $2.50 currently on the news, and while this doesn't change the fundamentals of the company, it's a positive for the stock.
Regards,
Jim Cramer
DISCLOSURE: At the time of publication, Cramer was long Caterpillar, McDonald's and NYSE Euronext.
Send email to james.cramer@thestreet.com.