Diamonds and Dogs
Apple (AAPL) leading the chip sector higher. Apple is up over 2% after the Nikkei Asian Review reported the company asked its suppliers to increase production for the iPhone 11 by up to 10%. Apple suppliers like Skyworks Solutions (SWKS) is up 4%, Lumentum Holdings (LITE) is up 5% and the Philadelphia Semiconductor Index is up 1.2%.
HP (HPQ) continues to struggle. The computer and printing giant is down 9% after announcing plans to cut 7,000 to 9,000 jobs over the next three years, as its biggest profit generator, printing, continues to reel from soft demand pressures and cheaper printing supplies. HP expects to save a $1 billion over the next three years with the restructuring. The company remains a cash cow generating free cash flow of at least $3.0 billion a year. HP will use the job cuts and cash flow for a $5 billion share repurchase program and raise their dividend by 10%. The dividend hike and the constant decline of the stock bumps the yield up to 4%.