Diamonds and Dogs
A chink in the Armour. Under Armour (UAA) is down 26% to a 4 year low after missing earnings and sales estimates for the fourth quarter, while also announcing that its chief financial officer is leaving. On the one hand, Under Armour did deliver increases in revenue and sales, which is pretty good considering the overall apparel market, but sales look to be growing only 12% about half the annual growth rate over the last five years. Going forward, Under Armour foresees its 2017 revenue of only $5.4 billion well below estimates of $6.06 billion.
Drug stocks including Celgene (CELG) are higher in a down market after President Donald Trump met with CEOs of the biotech and pharma industries, promised to "streamline the FDA" and cut regulations so that new products can be brought to the market faster and cheaper. Trump also wants drug prices to remain low through more competitive bidding. He vowed to take on "price fixing by the biggest dog in the market, Medicare."