Diamonds and Dogs
Chip stocks keep rallying. Advanced Micro Devices (AMD) and Intel (INTC) are higher following upgrades at Nomura Securities. AMD is up 9% as the analyst called it a stand out in the chip space. Intel, Texas Instruments, Microchip are all up over 2% today. Also helping the sector is optimism for a U.S.-China trade deal.
Raytheon (RTN ) in defensive-mode. The defense contractor known for their missile defense system is down 4% on a downgrade at UBS with a lower price target. In a research note to clients, the analyst said Raytheon's relative valuation "is no longer compelling" given the company already has outperformed the large-cap defense average by roughly 900 basis points this year, and that it is already below average free cash flow yield for 2019 and 2020.