Diamonds and Dogs
Is your new year's resolution getting in better shape? Then you should take a look at today's diamond, Lululemon Athletica (LULU). The Canadian based company known for their yoga and running clothes is jumping 6% thanks to not one, but two upgrades. Not many stocks are trading higher with the Dow down over 350 points today, the worst start to a year in 84 years, but Lululemon looks to be getting their act in gear. The analyst today indicated among other things that the company is making changes to their supply chain to lower costs, reduce discounts and boost profit margins. If these changes work, 2016 could a good year for Lululemon.
Today's dog is the market in general. The major indexes are all lower by 2% or more with the Dow falling over 350 falling and as much as 400 points this morning. The selling started in Asia overnight with China halting their trading after a 7% drop. The London and Tokyo exchanges didn't fare much better. The German index dropped 4%. On the brighter side, gold is up 1.4% today showing some people are transferring their money from securities to gold in fear of more downside. Many of the dog in the market last year are seeing a rebound today with the start of a new year.