Industrial sector shows strong growth and order backlogs, poised for gains despite macro risks.

The industrial sector, represented by XLI, is demonstrating strong fundamentals with expanding factory activity, rising backlogs, and robust order growth. This suggests future revenue strength for major companies like Caterpillar, Deere, Raytheon Technologies, and General Electric. Investors can potentially benefit from volatility and earnings uncertainty through strategies like writing calls on XLI, which offers an estimated 13.5% annualized yield. However, risks include ongoing input cost inflation, limited capital rotation from tech stocks, and liquidity constraints in related investment products.

Caterpillar trades at USD 726.56 with a slight 0.11% gain as of Oct 20, 2026 23:11 WIB on Pluang. Deere shows stronger momentum, rising 1.35% to USD 635.48. Raytheon Technologies is down 0.89% at USD 190.40, with nearly balanced buy-sell activity. These figures highlight mixed investor sentiment in the industrial sector amid earnings season.