Diamonds and Dogs
A good week for Salesforce (CRM). The software maker is up 26% following earnings and news their stock will be added to the Dow Jones Industrial Average. Earnings jumped 118% from a year earlier while revenue climbed 29% to $5.15 billion, including the acquisition of Tableau Software. Salesforce earnings and sales are benefitting from the great "Digital transformation" as companies turn paperwork into electronic records and automate business workflows. Thanks to the nearly 40% rally in the two weeks, Salesforce is now one of the top 20 largest US companies.
American Airlines Group (AAL) expecting a tidal wave of layoffs. American is down 2% as the airline plans to cut 19,000 workers once federal payroll aid expires on October 1st, capping a 30% workforce reduction since the coronavirus pandemic began. American is the first major carrier to disclose how much it will shrink operations as it adjusts to passenger numbers that are down 70% from last year. To prevent the job cuts, Congress may have to step up payroll support for airlines.
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