Diamonds and Dogs
Chips keep performing well. DRAM maker, Micron (MU) is up 5% to a 16-month high following an upgrade at Susquehanna. The analyst sees increased prospects of a sustainable DRAM/NAND ASP improvement starting in the May quarter and sustaining into second half of 2020 with earnings power in the $8-$10 a sahre range. The analyst upgraded his price target of Micron of $85 a share.
More bad news for Boeing (BA). Boeing is down 3% on heavy volume on rumors Boeing may cut or halt production of their 737 MAX plane after the Federal Aviation Administration said last week it would not approve the plane's return to service before 2020. Boeing's best-selling plane has been grounded since March after two crashes in Indonesia and Ethiopia killed 346 people, costing the plane manufacturer more than $9 billion so far. Analysts say a suspension of MAX production would likely result in significant additional charges for Boeing and could result in layoffs or furloughs of workers at Boeing's 737 factory south of Seattle and their suppliers.