Diamonds and Dogs
Procter & Gamble (PG) one of the few Dow components higher. The consumer staple is up 2% after Stifel Nicolaus upgraded the stock with a $117 price target saying its time to buy, citing valuation and potential near-term sales growth from COVID-19. P&G is also installing new lines to start production of hand sanitizer in five manufacturing sites around the world. P&G is also making face masks for the healthcare industry.
Gap (GPS) gaping lower. The clothing retailer is down 7% not far from a 52 week low after withdrawing full-year forecast issued just two weeks ago, suspended its dividend and said it will draw down on its entire $500 million credit facility as the apparel retailer looks to weather the coronavirus crisis. The CEO said in a statement that the company was taking the steps to further strengthen its financial liquidity and flexibility "in this time of unprecedented disruption to the retail sector." The company will also reduce capital expenditure by nearly $300 million during the year, as well as review all operating expenses to curb spending.
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