Diamonds and Dogs

10/8/19

American Airlines (AAL) looking better. The airliner is up 3.5% after posting their best on-time arrival rate of 82.9 percent in September, its strongest month since November 2017 and the seventh-best monthly performance since American and US Airways merged in 2013. American is also benefitting from a lawsuit form Southwest pilots against Boeing alleging they have lost $100 million in wages from 30,000 canceled flights of the Boeing 737 Max. Boeing has already set aside billions for airline compensation for the likes of Southwest and American.

Ambarella (AMBA) may lose two customers. The high-definition video chip designer is down 10% after the company's biggest customers, China's Hangzhou Hikvision and another Chinese firm were blacklisted by the Trump administration. The Trump administration placed eight Chinese technology companies on a U.S. blacklist accusing them of being implicated in human rights violations. These moves are coming as high-level trade talks are set to begin Thursday in Washington. These two Chinese companies may make up as much as 15% to 25% of Ambarella's revenue.