Diamonds and Dogs

7/1/22

Starbucks (SBUX) continues to bounce. Starbucks is up 2% as the company will reopen 600 of their 900 stores in Shanghai, including the Shanghai Roastery to mobile and to-go orders. At the same time Starbucks is aiming to exit Russia and close 130 licensed cafes and employees back here continue to try and unionize. Insider buying in May is a good long term signal.

Chips are on a cyclical downswing. Micron (MU) is down 5% making a 52-week low after lowering guidance for the rest of the year. Micron blamed its disappointing outlook on weakening smartphone and PC sales as well as demand and supply issues in China. The company also cited elevated inventory levels at its cloud computing customers. The rest of the sector is lower in sympathy as analysts expect more shoes to drop.