Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of the world. Much of Cummins’ foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins’ business model is unique as it competes with many of its heavy-duty truck manufacturer customers, which also make their own engines.

The first-quarter earnings season has been sensational. Many companies knocked it out of the park when delivering earnings and revenue numbers that well beyond expectations. With reports now in from about 96% of S&P 500 companies, earnings have climbed a staggering 29% from last quarter. Information Technology, up 56%, and Communication Services, up 51%, have led the pack. At the bottom are Healthcare, down 3%, and Energy, down 1%. With earnings season essentially over, we have had a chance to look at trends. In particular, we watch for companies that raised guidance as we view that action as a likely catalyst for market-beating returns in the quarters ahead. It's even harder for companies to raise guidance during uncertain economic times, as vision is murky. The following is a partial list of companies in Argus' Fundamental Universe of Coverage where management raised its outlook during the 1Q26 reporting season.

Cummins designs, manufactures, and distributes diesel and natural gas engines and power distribution systems. The shares are a component of the S&P 500. The company has 67,400 employees.

The May jobs report comes out this week, as do a few late earnings reports from some big tech and retail names. Last week, the Dow Jones Industrial Average rose 1%, the S&P 500 was up 1.4%, and the Nasdaq popped 2%. Year to date, all three indices are in positive territory, with the DJIA up 6%, the S&P 500 higher by 11%, and the Nasdaq ahead by 16%. On the earnings calendar, highlights this week include Hewlett Packard Enterprise on Monday; Palo Alto Networks, Dollar General, and Ulta Beauty on Tuesday; Broadcom, CrowdStrike, and Medtronic on Wednesday; and Ciena and Lululemon on Thursday. About 96% of S&P 500 companies have reported so far, and overall earnings are up 29% over last quarter. Information Technology, up 56%, and Communication Services, up 51%, are leading the pack. At the bottom are Healthcare, down 3%, and Energy, down 1%, according to LSEG I/B/E/S. On the economic calendar, ISM Manufacturing and Construction Spending are due out on Monday; the Job Openings and Labor Turnover Survey (JOLTS) report on Tuesday; ADP's private payrolls report on Wednesday; and the May Employment Situation report on Friday. Turning to economic data, gas prices remain elevated but dropped a penny last week, with the average price for a gallon of regular gas now at $4.48. The Atlanta Fed GDPNow forecasts GDP growth of 3.8% for 2Q, compared to the 1.6% actual in 1Q. The Cleveland Fed Inflation Nowcast calls for CPI of 4.2% for May, a step-up from the 3.8% print in April and 3.3% in March. Mortgage rates inched up another two basis points last week, with the average 30-year fixed-rate mortgage now at 6.53%, according to FreddieMac. The next Federal Open Market Committee (FOMC) meeting is on June 17, and will be the first under the chairmanship of Kevin Warsh. Odds are at 0% for a rate move at that meeting. Taking a deeper dive into performance so far in 2026, a leading industrialized global stock market index, the ETF EFA, is up 9% year to date. The leading emerging market ETF (EEM) is up 25% year to date. U.S. growth stocks are up 7% looking at ETF IWF, while value stocks (IWD) are up 12%. Crude oil prices continue to be volatile. On Friday, oil was much lower at $87 per barrel, but still up 51% for the year to date. In other asset classes for the year to date, AGG bonds are down 1%, gold is up 5%, and Bitcoin is down 16%. The U.S. dollar is up 1%, tracking DXY. The VIX Volatility Index was about 15 on Friday, well below its historical average of 20. Turning to sector performance, the year-to-date list from first to worst as of May 22, is Energy (+32%), Information Technology (+18%), Communication Services (+9%), Industrials (+11%), Real Estate (+11%), Consumer Staples (+10%), Materials (+10%), Utilities (+6%), Consumer Discretionary (+2%), Financials (-5%), and Healthcare (-3%).