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Positive Points: "We are taking a pragmatic view of 2013-we're not expecting rapid growth, and we're not predicting a global recession. At this point, we expect 2013 sales will be similar overall to 2012, but with a slightly weaker first half and a slightly better second half", added management. Despite the turbulence seen in the global economy, Caterpillar registered record revenue levels for its third quarter. As the world's largest manufacturer of bulldozers, excavators and other construction machinery, Caterpillar is closely watched as a gauge of the strength of the global economy.

Negative Points: For the second time in 2012, Caterpillar has lowered its outlook for the full year. In July, the company also cut its 2012 forecasts, and last month it reduced its 2015 earnings forecast, saying it expects demand for its products to fall more than previously forecast over the next few years, especially in the mining sector. Caterpillar cited that the Eurozone is the most significant risk to its 2013 economic outlook.

Financial Highlights: Caterpillar recorded a quarterly profit of $1.7 billion, beating Wall Sreet estimates. The figure included a $273 million gain from the sale of a majority interest in the group’s third party logistics business. Revenues totalled $16.44 billion, from $15.72 billion during the same period a year earlier. It was an all-time third-quarter record, said the company, however the figure was lighter than consensus forecasts of $16.79 billion.

Third quarter results: Dow Jones Industrial Average component, Caterpillar Inc, reported better-than-expected quarterly profits that surpassed expectations, although revenues, 5% higher than Q3 2011, were shy of forecasts. The company lowered its 2012 outlook amid continued economic weakening and uncertainty. The company now expects per-share earnings of $9 to $9.25 on revenue of about $66 billion, compared with its prior estimate for earnings of about $9.60 and revenue of $68 billion to $70 billion. "We are taking a pragmatic view of 2013, we're not expecting rapid growth, and we're not predicting a global recession," said Chairman and Chief Executive Doug Oberhelman. "While machine deliveries to end users have continued to hold up, our sales will probably remain relatively weak early in 2013 as dealers are likely to continue reducing inventories”. On balance,

Company overview Caterpillar is the world's largest maker of construction and mining equipment, diesel and natural gas engines and industrial gas turbines, and the largest consumer of heavy plate steel in the United States. The company and its dealers now sell products in around 200 countries.

Hikma Pharmaceuticals: UBS downgrades neutral to sell, 755p unchanged.

Fidessa: Merchant Securities cuts target from 1,700p to 1,510p, buy rating kept; Jefferies keeps hold rating and 1,510p target; Investec cuts target from 1,230p to 1,110p, sell rating kept.

e-Therapeutics: Panmure Gordon cuts target from 76p to 73p, buy rating kept

Devro: Panmure Gordon keeps hold rating and 320p target; Investec keeps buy rating and 355p target.

Darty: AlphaValue upgrades from reduce to add.

Bunzl: Jefferies ups target from 860p to 880p, underperform rating kept.

ASOS: Investec raises target from 2,450p to 2,700p, buy rating kept.

Alliance Pharma: Investec ups target from 28p to 28.7p, hold rating kept.

Aggreko: Jefferies cuts target from 2,800p to 2,535p, buy rating kept; HSBC downgrades to underweight, target cut from 2,350p to 1,750p; JPMorgan Cazenove cuts target from 2,360p to 2,165p, neutral rating kept; Barclays Capital cuts target from 2,550p to 2,360p, overweight rating kept.

888 Holdings: Morgan Stanley ups target from 125p to 130p, overweight rating kept.

If only on the basis of timing rather than trading, the forthcoming update from ARM Holdings (ARM) could be helpful for stock market bulls as it coincides with the likely launch of the new iPad mini from Apple. There is no doubt that the chip designer is lucky to have Apple as one of its more important customers. Key for the Q3 update from the UK tech giant is whether the faith shown by UBS last month is justified. UBS reiterated its buy recommendation and raised its target price from £6.40 to £7.50. Those familiar with ARM’s share price performance since the summer will know that it has been a rocky ride and for some in the market, the stock trading at 26 times earnings for 2014 will prove too rich a rating regardless of the Apple connection.

UBS has also been hard at work in its research on Home Retail Group (HOME). At the start of September it upgraded the Argos owner to buy, rating it one of its top two picks in the retail sector. Indeed, since its last sector update in February, UBS has highlighted how well the group has performed well vs. the local market (despite the weather), with disposable income and intake margins recovering in line with expectations. The resulting effect on the share price has been a sharp recovery from 70p in July to over 100p going into the last few days ahead of the interim results.

For advertising giant WPP (WPP), the run-up to the U.S. Presidential election is effectively the home stretch of what should be bread-and-butter mega-media events for a group with such a truly international presence. Of course, investors have had a long time to factor in the London Olympics financial bonanza, so as we head into the autumn the issues centres around whether WPP’s present rating is fair or not? According to a recent update on the company from broker Jefferies, with the low single digit organic growth and PE around the 10 mark, it is difficult to view the shares as expensive.

Alliance Pharma, a speciality pharmaceutical company, has said its wholly owned subsidiary, Alliance Pharmaceuticals, has acquired Opus Group Holdings for £8.0m plus the net asset value of Opus at completion (estimated at £1.5m). The Opus group sells products for stoma care, including skin creams and cleansers, in the UK and Ireland. In the year ended March 31st Opus delivered turnover of £3.8m and pre-tax profit of £2.1m. The consideration is being funded from existing cash and bank facilities.

Consenus forecasts for the year ending October 31st 2012 are that IDOX will make pre-tax profits of £14.6m on turnover of £55.8m.