U.S. Markets closed

TODAY'S CHARTS: Caterpillar admits to cheating customers; Smith & Wesson owner plunges after massive gun sales decline

Amazon (AMZN) is rallying on news the “Amazon Effect” is alive and well. United Natural Foods (UNFI), the food distributor whose largest customer is Amazon’s Whole Foods, said it is “continuing to see record sales and shipping unit volume” and incurred $25 million in additional out-of-stock costs as it races to keep up with demand.

Trivago (TRVG) shares are rising on an upgrade to buy at Deutsche Bank. Analyst Lloyd Walmsley notes the bidding environment from large customers is stabilizing, which may drive better revenue.

Caterpillar (CAT) admitted in court documents that one of its heavy machinery units cheated railcar customers by performing unnecessary repairs and dumped brake shoes and other evidence into the ocean. The unit agreed to pay a $5 million criminal fine and $20 million in restitution.

Western Digital (WDC) shares are up over 2% after Reuters reported the data storage company and Toshiba are aiming to settle their chip dispute, with a potential agreement coming as soon as next week.

United Continental (UAL) is trading slightly higher after the airline boosted its Q4 revenue guidance and announced a $3 billion share buy back program.

Shares of American Outdoor Brands (AOBC) are falling to a two-year low. The Smith & Wesson owner said it saw a severe drop in gun demand, as gun buyers have become less concerned about the likelihood of gun legislation.