Diamonds and Dogs

7/16/19

JB Hunt (JBHT) continues to chug along. The trucking and logistics company is up 6% to a three month high following earnings. Earnings were not spectacular beating by 2 cents as revenues rose 5.7% to $2.26 billion. But the stock was not far from a 52 week low due to fears of wage inflation, rail problems, and the ever-shrinking delivery window thanks to Amazon.com. Cowen upgraded the stock with a $113 price target stating management's comments concerning pricing and the overall landscape were more positive than many anticipated.

Domino's Pizza (DPZ) taking a hit. Domino's is down 7% near a four month low following the slowest U.S. same-store sales growth in at least three years and concerns about the company's delivery service strategy. Competitors like UberEats, DoorDash and GrubHub are pushing into the pizza delivery business, which has been at the heart of Domino's expansion into the world's biggest pizza chain. Domino's wants to speed up delivery times by opening more stores near existing ones, but that plan may not be the best strategy.