Diamonds and Dogs
Maybe Trump isn't bad for Tiffany's (TIF). With Trump winning the election, customers were having a tough time getting to the Tiffany store on 5th Avenue, but today the stock is up 7% after better than expected quarterly numbers. Tiffany's beat earnings estimates by 9 cents while also beating revenue estimates. Gross margins of 61.0% in the third quarter and 61.4% in the year-to-date were higher than 60.2% and 59.7%, respectively, in the prior year. If Trump can get the economy going customers will have more money to spend at Tiffany's.
Woes continue for drug maker, Mallinckrodt (MNK). The drug maker is down 9%, the biggest loser in the S&P 500, not far from a 52 week low following earnings. The company actually beat sales and earnings estimates, but lowered guided going forward. During their conference call, management said the company's generic business continues to face significant challenges, with sales expected to drop at a double-digit rate next year.