Diamonds and Dogs

3/12/18

 Micron (MU) on a roll. The DRAM maker is leading the chips and the tech sector higher today, up 8% thanks to an upgrade at Nomura Instinet with a new price target of $100 a share up from $55. The analyst believes Micron shares are in the early stages of another major breakout with DRAM pricing resuming an upward trend in Q2. The analyst also expects a first-time dividend and share buyback announcement in May with continued margin expansion in NAND [flash memory] and increased M&A discussion as important catalysts. Micron's stock is up 50% from the February lows.

Boeing (BA) taking a hit on further concerns of steel and aluminum tariffs. Boeing's commercial and military jets are constructed using significant amounts of metal, but the bigger concern is tariff retaliation. Boeing could lose out to archrival Airbus for future orders to foreign nationals including China. The military side of Boeing is just as vulnerable. Boeing's very public dispute with Bombardier that led the U.S. to try to impose a nearly 300% tariff on CSeries jets angered officials in Canada and the United Kingdom.