Diamonds and Dogs
Oil keeps cooking. Dow component, Chevron (CVX) is up 5% not far from a 52 week high after easily beating earnings estimates even as sales declined 12.2% year over year to $30.14 billion. The trend is in their favor as third quarter results reflect an improvement from the first two quarters of this year. Looking forward, December production is expected to be between 2.65-2.70 million barrels per day up 5% from current levels.
Healthcare can't get out of its own way. Plenty of dogs in the healthcare space as Amgen (AMGN) drops 10% while McKeeson (MCK) drops 24% on earnings. McKeeson, one of the largest US prescription drug wholesalers slashed its fiscal year earnings forecast to an range of $12.35 to $12.85 per share, from its prior outlook of $13.43 to $13.93 per share due to drug pricing pressures. The CEO for McKeeson said in his conference call that competitors had significantly undercut their pricing, so they were compelled to respond. Looks like a race to the bottom.