Diamonds and Dogs
Back to back big up days in the markets producing plenty of diamonds, but U.S. engineering and construction company McDermott (MDR) is up more than 25% this morning after it announced a new contract with Saudi Arabia's state oil company. The $1.5 billion contract is the largest single contract ever for McDermott's Middle East operations and is the first following a recently signed 5-year agreement with Saudi Aramco in offshore Saudi oilfields. The size of the contract is worth more than the market cap of McDermott. That's saying a lot.
Retail has been a great place to hide in the recent turmoil, but today the cookware and home furnishing company, William Sonoma (WSM) is the dog down 5% on lackluster earnings and weak guidance. Sales at the company's Pottery Barn and West Elm chains have been growing, its flagship brand is slumping. Tiffany's and Dollar General are also lower following disappointing earnings. Not a great day for retail.