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T3's Take 3: Big Blue Bombs, Tesla Ticks Down, Health Care M&A in Focus


Today's financial recap and tomorrow's financial outlook.


Today at T3 Live

Buzz & Banter contributor Michael Comeau sold his holdings in Facebook (FB) this morning. He originally suggested going the December $95 call for $2.04 or the January $100 call for $1.22 back on June 9. The calls were trading for $9.35 and $7.35, respectively, as of this morning.

Click here to learn more about the Buzz & Banter

Big Blue Falls

IBM (IBM) posted its thirteen straight revenue drop yesterday after the close. The biggest source of weakness was its software division. CFO Martin Schroeter tried to reassure investors that the company is on the right track with heavy investments for future returns. The company expects to return to growth though efforts in cloud computing, big data, security, and other areas falling into "strategic imperatives." Revenue from IBM's cloud business rose 70% during the quarter.

IBM shares fell 5.9%.

United Technologies (UTX) shares witnessed their largest decline since 2001 after the company lowered guidance in its UTC Aerospace Systems and Otis elevator units.

The drops in IBM and United Technologies pulled the DJIA lower, and it closed down 1.0% vs. -0.4% for the S&P 500.

Tesla Falls

Telsa (TSLA) shares took a beating today, closing down 5.5%. The company received a downgrade from UBS, which also cut its price target to $210 from $220. UBS said that the company's auto and storage businesses will most likely disappoint investors.

Tesla had risen sharply off its July 8 low.

Healthcare M&A Chatter

Thoratec (THOR) shares flew 18.0% today on a report from Bloomberg that the company was in negotiations to be taken over by St. Jude (STJ). JPMorgan (JPM) commented that the move would make strategic sense, allowing St. Jude to move into the ventricular assist device market.

Depomed (DEPO) rallied after it reported that it received unsolicited bid of $33 per share takeover proposal from Horizon Pharma (HZNP). Horizon previously bid $29.25 per share on May 27, which the board unanimously rejected.

Wednesday's Financial Outlook

US economic data for tomorrow will include MBA mortgage applications, FHFA house price index, existing home sales, and DOE oil inventory data.

Overseas, we will see the Bank of New Zealand Rate Decision, and Japanese merchandise trade balance.

Boeing (BA), Coca-Cola (KO), and St. Jude Medical (STJ) will announce earnings before the open.

American Express (AXP), Qualcomm (QCOM), Sandisk (SNDK), and Texas Instruments (TXN) will announce earnings after the close.

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