Diamonds and Dogs
Chevron (CVX) is the diamond of the day up 3% as the top performing component in the Dow Jones Industrial Average. Rumors have been flying that Chevron doesn't have the cash to maintain the dividend without dramatic cost cuts or asset sales. Part of the rally is short covering as the price of oil rocketed the last several days up 15% to $44.45 a barrel since Wednesday. Nice rally, but will it last?
Gamestop (GME) has stopped going up. The video game retailer is down 6% following earnings and conservative guidance. One analyst upgraded the stock raising his price target to $55 saying the next generation of video game sales coming out this fall will easily beat estimates while another analyst downgraded the stock to a sell comparing the company to Blockbuster. Let's hope the company can figure out a profitable way to transition the company to the digital future.