Diamonds and Dogs
Under Armour (UAA) up 4% after cutting 400 jobs or 3% of their workforce as part of the sportswear maker's efforts to slash costs and to compete with Nike and Germany's Adidas. Under Armour now expects its pretax restructuring charges for the year to be between about $200 million and $220 million, with the workforce reductions resulting in about $10 million in severance charges. Under Armour shares have run up 34.4% year to date through Wednesday, while rival Nike Inc.'s stock has climbed 36.3% year to date. Nike has sold out 61% more merchandise since the controversial ad campaign featuring former NFL player Colin Kaepernick appeared earlier this month
Red Hat (RHT) is in the red. The Linux open-source software firm is down 6% following earnings. Earnings beat expectations, but sales which grew 14% were light of expectations. The company also lowered guidance for the current quarter. Red Hat's CEO, Jim Whitehurst, insisted that the company is not losing market share, but investors are not so sure.