Positive comments about Deere () - and United Rentals () - an agricultural machinery company on Monday (April 25) -.
AAP officials said crops are a problem as regards Deere. According to the United States Drought Monitor, "nearly half (48%) of winter wheat in Colorado was rated in very poor to poor condition, and one-fifth to one-third of wheat was rated in very poor conditions in Kansas, Nebraska, and South Dakota, according to the AAP.
That augurs in favor of ag commodity prices remaining at levels that should... resurgence both farmer income and ag equipment expenditure, the AAP team said. We would not be surprised to see a pull-forward in ag equipment spending in the coming months if the Fed 'front-load' its interest rate increases.
At each of its next two meetings, many investors anticipate the Federal Reserve to hike interest rates by 50 basis points or more.
United Rentals is a business that cites the strong Architectural Billings Index for March and positive comments on Nucor () and Steel Dynamics () - non-residential construction.
"We see those statements laying the foundation for an optimistic future when United Rental reports its quarterly results later this week," the AAP team said.
Caterpillar () and Terex () have both reported earnings this week. And the AAP team predicts their results to show signs of growth for United Rentals.
Dawit Woldemariam, a Morningstar analyst, loves United Rentals.
United Rentals will continue to be one of the most well-known players in the equipment rental industry, according to a January statement. As the industry leader, the company provides customers better equipment availability and reliability than smaller players.