Diamonds and Dogs

11/21/19

More mergers. Charles Schwab (SCHW) is up 8% on rumors they are in talks to buy rival TD Ameritrade (AMTD) for as much as $26 billion. TD is trading up 18% but still down below the highs for the year and barely positive for the year. The combine companies would have $5 trillion in assets and combine the number one and number three RIA custodians. Fidelity is number 2.  Ameritrade acquire rival Scottrade just two years ago. If the deal goes through, I doubt this will be the last of the industry deals.

Applied Materials (AMAT) downgrade. AMAT is down 3% after UBS analyst Timothy Arcuri downgraded Applied Materials stock to sell from neutral and trimmed his price target to 48 from 49. As the analyst put it, the semiconductor equipment stocks may have, in the near term, run their course.