Diamonds and Dogs
Hewlett Packard Enterprise (HPE) is one of the few tech stocks trading higher following earnings. HPE is up 5% to a one month high after beating estimates by 2 cents as revenues rose 3.7% to $7.95 billion. HPE also gave in-line guidance for the current quarter and maintained guidance for 2019. Investors breathed a sigh of relief that guidance wasn't cut. HPE competes with rivals such as Amazon and Microsoft and is cutting costs as part of its effort to drive gross cost savings of $1.5 billion in the next three years.
Another bad day for the banks as Citigroup (C ), Bank of America (BAC) and Wells Fargo (WFC) fell over 3% to new 52 week lows. JP Morgan Chase is down 3% not far from a 52 week low as CEO Jamie Dimon made comments today saying the strong economy is being offset by geopolitical uncertainty -oil, Brexit and Chinese trade tariff issues. Jamie Dimon does not see recession risk from flattening yield curve, but a recession is possible in 2020/21. However the lower corporate tax rate is a significant tailwind.