Diamonds and Dogs
Chips continue to perform well. Qualcomm (QCOM) is up 4% to a new high following an upgrade at Citigroup with a price target of $108 a share. The analyst expects upside to both revenue and margins for Qualcomm going forward given share gains in 5G, higher aerage selling prices and increased royalty revenue. Qualcomm shares have added 21% over the past three months, as the S&P 500 has risen 11%.
More software issues at Boeing (BA). Boeing is down 2% to a new recent low on news of a new software issue discovered in Iowa last weekend during a technical review of the proposed update to the grounded Boeing 737 MAX. The software issue is related to a power-up function that checks to see if data it is receiving from Boeing 737 Max monitors is working correctly. The software needs to be finalized before a global grounding can be lifted. If serious, the development could further delay the plane's return to service.