Diamonds and Dogs

4/26/19

Ford's (F) pickup truck is kicking butt. Ford is jumping 10% to a nine month high following better than expected earnings. The popular F-Series truck was the big winner in the first quarter gaining market share. The F-Series is also the highest margin product rolling off their assembly lines, lifting profits in North America by $300 million. Ford also benefited in the quarter from the introduction of the newly redesigned mid-size Ranger pickup. Ford plans to release a new Super Duty pickup truck before year end. An all-new F-150 will debut in 2020 along with a hybrid option. Finally some good news from Ford.

Intel (INTC) lowering guidance. Intel is down 9%, on track for the biggest one-day decline in 11 years, after reporting earnings. Intel actually beat earnings and sales results, but then lowered guidance for the second quarter and full year. Last week Intel disclosed they were pulling out of their next generation modem as their largest customer, Apple, switched to Qualcomm after settling their lawsuit. Intel is expecting a better second half to the year, but for now, business will be slow.