Diamonds and Dogs
10/23/18
Two Dow components trading higher. Verizon (VZ) is up 4% thanks to stronger-than-expected third quarter earnings, adding more telephone users to its network than analysts had anticipated. With the beginning of the 5G era in the fourth quarter, Verizon expects the trend to continue. McDonalds (MCD) is up 6% not far from a 52 week high following earnings. Sales fell 6% year over year, but global sales rose 4%. As one analyst put it, the results underscore the persistent strength of the McDonalds model.
Two Dow components trading lower. Caterpillar (CAT) is down 7% after having their best third quarter in company history. But less than stellar guidance, weak free cash flow and a declining backlog has investors selling. Another industrial, 3M (MMM) is down 4% after missing third quarter estimates and lowering guidance for the rest of the year. With the trade tariffs, it's not a good time to be an industrial.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.