Diamonds and Dogs
Chip stocks rebounding thanks to earnings from Micron (MU). The DRAM maker is up 12% following better than expected earnings and an optimistic forecast of a recovery in chip demand in the second half of the year. Most of the chip stocks are trading up more than 2% easing concerns that rising trade tensions would exacerbate a slump in the sector. Micron also said it was resuming some shipments to Huawei Technologies after reviewing a U.S. ban on selling products to the Chinese smartphone maker, its biggest customer. We'll see what President Trump has to say about that.
General Mills (GIS) generally lower. The food maker known for brands like Cheerios, Pillsbury, and Haagen-Dazs ice cream is down 6% to a four month low following earnings. General Mills beat earnings estimates, but sales missed expectations. Sales rose 7% to $4.16 billion thanks in large part to the 2018 acquisition of pet-food maker Blue Buffalo. However, organic sales rose just 1%-2% in the current fiscal year and North American sales, which account for more than half of the company's revenue, fell 2% due to a decline in its U.S. snacks business.