Diamonds and Dogs
Chips jump ahead of a $52 billion Congressional subsidy bill vote. Nvidia is up 5% as Nancy Pelosi's husband bought over $1 million worth of the chip stock ahead of the vote. I guess he knows how his wife will vote and where the money will be allocated. The draft bill in the Senate aims to increase semiconductor manufacturing in the U.S., putting the country on a more even footing with China.
IBM (IBM) falls after strong earnings. IBM is down 5% to a one-month even though the company beat estimates and sales rose 9.3% to $15.54 billion, the highest sales growth in over a decade, despite headwinds from the strong dollar. The reason for the sell off is due to the near-term outlook and lower free cash flow. Some analysts are concerned of slowing growth and rising risks. Longer term, the analysts concede there are catalysts to move the stock higher including re-accelerating services growth, better software performance and a weaker dollar.
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