Diamonds and Dogs

9/10/19

Oil looking good again. The driving season is over, but the price of oil is moving higher again. Oil-service giant, Schlumberger (SLB) is up 5% on an upgrade from Morgan Stanley. The upgrade is due to improving cash flow, a focus on international markets and maintaining its hefty dividend of 5.4%. With the stock down 50% from the highs set back in the beginning of 2018, there could be good upside.  

Ford Motor's (F) bonds are junk. The automaker is down 5% after bond-rating company Moody's downgraded the company's debt to junk, or speculative-grade status. The downgrade is due to considerable operating and market challenges facing Ford, and the weak earnings and cash generation likely as the company pursues a lengthy and costly restructuring plan to move more toward electric cars. Luckily for Ford, Fitch and S&P still rate Ford's bonds as investment grade.