Diamonds and Dogs
Your portfolio has an ally today. Today's diamond, Alliance Fiber Optic (AFOP) is surging 19% after agreeing to merge with customer, Corning for a $305 million. This deal will add to Corning's Optical Communications sector by adding AFOP's ability to create optical components for cloud data-center operators. With today's rally, Alliance is back to levels not seen since October.
Gap is gapping lower. Retail heavy weight, Gap Inc. (GPS) is down 14% not far from their 52 week low following disappointing earnings. Gap saw sales fall to $1.43 billion from $1.53 billion a year ago while same store sales decline by 6% in March. Among its brands, Banana Republic saw the largest decline of 14% in same-stores sales compared to a 3% a year earlier. The Easter holiday left Gap with some rotten eggs.