Diamonds and Dogs
Starbucks (SBUX) brewing up something good. Starbucks is up 3% not far from a 52 week high following better than expected earnings. Revenues rose 9.2% to $6.63 billion, ahead of estimates. The closely watched comparable store sales number came in at 4%, beating estimates of 3%. The U.S. saw comp-store sales of 4%, while China's comp store sales were up 1% in the quarter. During the quarter, Starbucks opened 541 new stores, bringing the total to 29,865 worldwide. A number of upgrades with price targets of $70 and $72 a share.
Maybe there isn't an Intel chip inside after all. Semiconductor, Intel (INTC) is down 5% not far from a 52 week low after earnings. Intel actually beat estimates, but then guided lower for the first quarter. The company had plenty of excuses including the U.S.-China trade, the U.S. government shutdown and Brexit. The good news is the company upped the dividend which now yields 2.6%. I guess Intel is an income stock until demand improves again.