Cummins shares explode after earnings report

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Stock in Cummins Inc. shot up as much as 24.7 percent this morning following a positive first-quarter earnings report.

At noon, the shares had settled retreated from a peak of $107 to near $100—still a huge run-up compared to yesterday’s closing price of $85.99..

The Columbus, Ind., diesel engine maker said profit rose 5.9 percent, to $142 million, mostly due to strong performance in its electrical power-generation and distribution business.

Sales of engines for heavy trucks declined due to trucking firms’ stocking up before new emission regulations went into affect.

Cummins shares have been on a tear since CNBC “Mad Money” host Jim Cramer began touting the stock this month and Italy-based Fiat this week announced it would like to enter the U.S. truck market through an acquisition.

In pre-trading activity this morning, the shares were up nearly 6 percent, to $91.10. As recently as April 19, the stock traded at $73.80.

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