Advertisement
U.S. markets open in 6 hours 21 minutes
  • S&P Futures

    5,208.75
    -6.00 (-0.12%)
     
  • Dow Futures

    39,221.00
    -2.00 (-0.01%)
     
  • Nasdaq Futures

    18,185.00
    -46.50 (-0.26%)
     
  • Russell 2000 Futures

    2,047.50
    -2.30 (-0.11%)
     
  • Crude Oil

    82.55
    -0.17 (-0.21%)
     
  • Gold

    2,159.70
    -4.60 (-0.21%)
     
  • Silver

    25.11
    -0.15 (-0.61%)
     
  • EUR/USD

    1.0866
    -0.0011 (-0.10%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • Vix

    14.33
    0.00 (0.00%)
     
  • GBP/USD

    1.2704
    -0.0024 (-0.19%)
     
  • USD/JPY

    150.3180
    +1.2200 (+0.82%)
     
  • Bitcoin USD

    64,232.21
    -4,107.81 (-6.01%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,722.55
    -4.87 (-0.06%)
     
  • Nikkei 225

    40,003.60
    +263.20 (+0.66%)
     

China stocks are popping and history shows that means these Dow stocks should be winners

China stocks are popping and history shows that means these Dow stocks should be winners
  • China's Shanghai Composite Index surged more than 4 percent on Monday.

  • History shows Caterpillar and Boeing are among the biggest Dow winners when China's stocks pop, according to CNBC analysis using Kensho.

  • It may be a quick trade, however, if the Chinese government's efforts to boost their market don't last.

China's Shanghai Composite Index surged more than 4 percent on Monday as authorities took steps to boost stock prices in the face of a slowing economy. History shows certain U.S. stocks are positively correlated to big up moves by China's equities.

One in particular — Caterpillar CAT — tends to do really well.

CNBC used analytics tool Kensho to look at what happens to members of the Dow Jones Industrial Average when the Shanghai jumps 2 percent or more in a single day.

Here are the biggest winners when U.S. trading opens following a big day for China stocks:

Source: Kensho

Caterpillar CAT 's success is closely tied to global manufacturing, so as China takes steps to support its markets, that should give a boost to the company. Caterpillar shares were up 1.4 percent in premarket trading Monday.

Other winners include Disney DIS , Cisco CSCO and Boeing BA .

This could be a quick trade, however. If the Chinese government's efforts don't work and Chinese stocks return to their bear market, Caterpillar and other Dow stocks could suffer .



More From CNBC

Advertisement