Diamonds and Dogs

12/18/15

Red Hat is red hot. Red Hat (RHT) is higher by 4% to a new all-time high following better than expected earnings last night. As one analyst put it, Red Hat delivered an early holiday gift with their results. The analyst raised his price target to $97 from $85 joining 19 other analysts who also raised their target prices.  A good day for software, but not much else.

Boeing (BA) is losing altitude. After raising their dividend by 20% and increasing their share buyback to $14 billion on Wednesday closing near an 8 month high, Boeing's stock has been slammed the last two days down 4% today on fears of lower pricing for jets and used jets. Wells Fargo downgraded the stock today saying 2016 is looking less than favorable risk-reward balance for aerospace with a possible earnings short fall this quarter for Boeing.