Diamonds and Dogs

1/10/19

Boeing (BA) keeps delivering. Boeing is having a good week up 2% today and up 7.5% for the week. Earlier in the week, Boeing reported fourth quarter deliveries of 238 total commercial airplanes vs 209 in last year. The stock has received two upgrades in the last couple of days with price targets of $388 and $450. Boeing keeps churning out cash for a 10% "free cash flow yield". The Morgan Stanley analyst expects a compounding growth story of 15% to 20% coming from buybacks, production hikes, and profit margin improvement.

A bad day for the retailers. Macy's (M) is down 18% on lower Dec/Nov comps and lower 2019 earnings guidance. Kohl's (KSS) was delighted with their holiday comp sales and yet the stock is down 6%. Target (TGT) saw 5.7% Nov/Dec comps and yet the stock is down 3.6%. Ralph Lauren (RL) is down 2.5% on an upgrade. Here we go again.