Caterpillar Power Surge Boosts Dow as Demand Boom Continues

Caterpillar's second-quarter profit surged on strong demand for its power-generation and construction equipment.

The company raised its annual revenue growth forecast after beating earnings estimates, with shares soaring 12% in morning trading. The stock surge also lifted the Dow Jones industrial index by 1.3%.

Caterpillar's core construction segment saw a 35% revenue increase in the quarter, driven by strong retail sales in North America where it recorded a 50% jump. The power and energy arm reported 17% revenue growth.

The company attributed the demand boom to the buildout of data centers and backup power equipment needed for such buildings. CEO Joe Creed told analysts that non-residential investment in critical infrastructure programs, heavy construction, and data centers is contributing to overall construction spending levels.