Diamonds and Dogs
Broadcom (AVGO) keeps pushing higher. Communications chipmaker, a key supplier to Apple, is up 3% following better than expected earnings after beating on sales as well. Revenue rose 132.8% year over year to $4.15 billion while gross margins improved as well to 62.4 percent. The company provided upside guidance for current quarter to $4.025-4.175 billion verse estimates of $3.9 billion. Following the better than expected earnings the stock received at least four upgrades with price targets in a range of $240 to $261.
The government showing up at your headquarters is not a good sign. Machinery giant Caterpillar (CAT) is down 5% after the U.S. DOJ showed up at their offices to conduct a raid in concert with three other federal agencies: The FDIC and IRS and Department of Commerce office of export enforcement. The stock has been on a tear in the last year, but this raid may put an end to that.