Diamonds and Dogs

10/24/18

Boeing (BA) flying higher. Boeing easily beat earnings and sales estimates while also raising guidance thanks to strong defense spending. Full year revenue could top $100 billion for the first time. The total backlog for planes grew to $413 billion or 5,800 airplanes. Net new orders for the quarter rose to $28 billion. Boeing reaffirmed they will deliveries of 810-815 commercial airplanes this year.

Texas Instruments (TXN) confirms a chip slowdown. TI is down 4% to a one year low after lowering earnings and sales guidance for the fourth quarter across most of their markets. The trade tariffs aren't helping either as companies have no incentive to stock up on components they're uncertain they will be able to use.  At least eight downgrades, but some analysts are saying long term the fundamentals are solid and the recent selloff properly discounts the earnings cut.