Diamonds and Dogs
Union Pacific (UNP) chugging along up 8% to a one month high. The railway company is getting a new COO and an upgrade. Union Pacific hired veteran, Jim Vena as COO less than two years after ending a four decade career with rival Canadian National. Cowen upgraded Union Pacific with a $178 price target. Cowen believes the new COO Jim Vena gives them more confidence in the company's ability to successfully implement its version of precision railroading (PSR).
California utilities, PG&E down again. S&P Global Ratings lowered PG&E's credit rating to single-B, two notches below the investment grade threshold, affecting around $18 billion in outstanding bonds. The stock is down 10% after dropping as much as 22%. Last November, PG&E warned investors that it faced "significant" liability, over and above its insurance capacity, if its equipment was found to have started the deadly Camp Fire that started in the city of Paradise and spread through much of Northern California, killing at least 86 people and causing billions in economic and environmental damage. On a similar note, today may be the last day for Sears Holdings (SHLDQ) before the courts rule to liquidate the whole company. Sears has been in operations for 126 years.