Diamonds and Dogs
United Continental (UAL) adding some positive news to the airline industry. United is trading up 6% to a one month high after raising guidance for the quarter and full year. United sees improving sales, improving profit margins while fuel costs are under control. This positive news follows a negative 60 minutes piece on Allegiant Airlines and a fatality on a Southwest flight the other day.
IBM still stuck in a trading range. IBM feels a lot like Lucy pulling the football away from Charlie Brown. IBM seems to rally into every earnings report only to pull back afterwards. This quarter was no different as the IBM is down 7% even as they beat estimates and sales grew 5% year over year. A number of analysts came to the defense of big blue, but it doesn't seem to helping in the short term. The good news is the stock yields 4%.