I don't make a habit of arguing with the market but in this case you have selling from speculators who will be cleared out by ten a.m.
From Dow Jones:
Deere 2Q Net Up 65% On Higher Prices, Volume; Raises Year View
Deere & Co.'s (DE) fiscal second-quarter earnings surged 65% as the agricultural-equipment maker benefited from higher prices and volume, helping it beat analysts' expectations.Here's the expanded (22 page PDF) release and financials.
Shares were up 1.8% at $88.50 in premarket trading as the company also unveiled plans for a new plant in China to meet rising demand and boosted its guidance for the year. Through Tuesday's close the stock is down 13% from its all-time high in April, it remains up 52% in the past year.
Deere said the initial outlay for the new plant in Northeast China--its seventh manufacturing site in China--is about $80 million. The plant is expected to be up and running late next year.
High crop prices have been spurring farmers around the world to spend more on equipment such as tractors, combines and planters. Deere's results improved last year from weakness during the recession as stronger demand and prior cost-cutting helped the bottom line. A recent pullback in some crop prices could hurt demand if the trend persists.
Chairman and Chief Executive Samuel R. Allen in February set a goal of doubling the company's annual sales to $50 billion by 2018 by increasing equipment sales outside the U.S. and Canada.
"Sales of large farm machinery, particularly in the United States, Canada and Brazil, are continuing to support the company's performance," Allen said Wednesday. "Construction equipment shipments are moving higher in spite of lingering weakness in the residential and commercial construction sectors."...MORE
Here's the second quarter conference call slideshow presentation.
