Diamonds and Dogs
Cinco de Mayo was good to Constellation Brands (STZ). The beer and spirits distributor is jumping 6% to a new all-time high following better than expected earnings. The company easily beat earnings expectations while sales rose 3.4% year over year to $1.94 billion in line with expectations. Constellations Brands raised its full-year earnings forecast, due in part to strong expectations for its beer business, to between $7.90 and $8.10 per share from its previous view between $7.70 and $8 per share.
Techs and FAANG stocks are taking it on the chin. The tech sector is the best performing sector year to date rallying as much as 20%, but into quarter end investors are taking profits. Google is down over 2% while Apple, Amazon, Netflix and Facebook are down over 1%. Can't blame investors. It's been a great run for these stocks, but it's time to rotate into cheaper sectors.