What Industrial Select Sector SPDR (XLI) Bought: Caterpillar Lea

WELLCOME TRUST LTD opened a $226.4M position in GE, per an SEC 13F filing. Multiple institutional investors adjusted their GE holdings in Q2 and Q3 2026, with some adding significant positions while others reduced theirs. GE insiders and members of Congress also traded GE stock. Analysts have set price targets for GE, with a median of $430.0.

HSBC's Islamic Global Equity Index Fund will stop investing in companies linked to Israel's military, including RTX, Rolls-Royce, Honeywell, BAE Systems, and Palantir, due to new rules restricting weapons-related investments. The fund follows the S&P Global 1200 Shariah Select Index, which will enforce a 5% income limit from military activities. The changes take effect on November 23, 2026, and follow an investigation revealing prior investments in these companies.

SoftBank reported a $3.7B loss on unused turbine orders, denying a default but confirming a $2.9B write-off. Elon Musk had claimed a default on X, causing SoftBank's shares to drop 10.83%. GE Vernova, a supplier, said the move had no impact on its backlog.

Morgan Stanley maintained a Buy rating and $1,350 price target for GE Vernova (67% upside), citing a backlog nearing $200B and long-term service revenue. The stock is down 31% from its June high due to data-center spending concerns. Analysts have raised 2027 earnings estimates, and the target implies a 58x forward P/E. SoftBank's reassessment of a project has added to investor uncertainty.

Five data center power suppliers reported updates on backlogs, guidance, and a fuel cell deal. Bloom Energy (BE) gained 13.0% after a 900-MW power agreement. GE Vernova (GEV), Constellation Energy (CEG), Talen Energy (TLN), and Quanta Services (PWR) also reported positive developments and raised guidance. The U.S. Energy Information Administration forecasts record electricity generation in 2026.

Anthropic, the company behind Claude AI, spent $3.4B on 1.7GW of gas generators from Caterpillar (CAT) for its data centers, highlighting AI's growing power needs. The deal, closed in September, underscores the importance of power generation for AI infrastructure. Anthropic, which filed for a 2026 IPO, reported an $80.7B net loss in H1 2026 and has $895B in long-term computing commitments, relying on loans for funding.