What recession? Caterpillar keeps repeating that demand is 'healthy,' 'strong' and 'robust'

In case there was any doubt, Caterpillar Inc. executives said about a dozen times on one conference call that demand remained healthy, strong and robust.

Shares of the construction- and mining-equipment maker CAT, +8.03% shot up 8.9% in afternoon trading toward a 4-month high, after the company reported third-quarter profit and sales that rose above expectations.

The stock, which was seeing its biggest-ever price gain of $17.49, based on FactSet data going back to 1972, added about 115 points to the Dow Jones Industrial Average DJIA, +0.76%, which was up 344 points.

When asked by William Blair analyst Larry De Maria on the post-earnings conference call whether the company is concerned about a potential recession or is doing anything to prepare for one, Chief Executive Jim Umpleby appeared to shrug off recession fears.

He acknowledged that the company is closely monitoring the macroeconomic environment but said that since laying out a competitive and flexible cost structure back in 2017, it has demonstrated that it can take action when needed.