Diamonds and Dogs

1/25/18

3M (MMM) leading the Dow to new highs. The Minnesota Mining and Manufacturing Company is up 2.6% to all-time highs thanks to better than expected earnings. Broad-based organic growth across all segments allowed the company to beat earnings by 7 cents as revenues rose 9.0% year/year to $7.99 billion. 3M lifted guidance for 2018 to a range of $10.20-10.70 verse prior $9.60-10.00 estimates. It's a good time to be an International conglomerate.

Union Pacific (UNP) is trading lower down 5% after missing earnings estimates by a penny as revenue rose 5.5% year over year to $5.45 billion slightly ahead of estimates. Fourth quarter business volumes, as measured by total revenue carloads, increased 1%; compared to 2016. Volume increases in industrial products and chemicals more than offset declines in agricultural products, automotive and coal. Intermodal volume was flat compared to 2016. Freight rev: Industrial Products up 28%; Chemicals up 7%; Intermodal up 4%; Automotive down 1%; Agricultural Products down 4%; Coal down 5%. The company is optimistic the economy will favor a number of thier market segments leading to another year of positive volume growth, but after a big run up, investors are taking profits.