Diamonds and Dogs
Boeing (BA) flying higher. The worst performing Dow component for the year is now helping prop up the Dow with a 5% rally to levels not seen since December. The company easily beat earnings estimates by 20 cents as sales fell 7.5% year over year to $23.9 billion. Investors seem to be looking toward 2017 when business is expected to pick back up. During the quarter, the Boeing paid $700 million in dividends and repurchased 51 million shares for a total of $6.5 billion or 7% of their market cap. Wow. The analyst at Standpoint downgraded the stock to a sell and a $125 price target before the open. Thanks for nothing.
Edwards Lifesciences (EW) takes a hit. The heart value maker saw sales rise 20.1% year over year, great for most companies, but not for Edwards Lifesciences. The stock is down 16% back to the June lows. Management still thinks it can hit the high end of its previous revenue guidance of $2.7 billion to $3.0 billion, but the company is limited to the number of patients requiring such heart valve surgeries particularly for long term growth. I guess this is a good thing for the average person.
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