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T3's Take 3: Dell Makes Historic $67 Billion Buy of EMC


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

Today on T3 Live

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Dell's $67 Billion Deal

As was rumored last week, privately-held Dell Inc announced that it will acquire EMC (EMC) for $67 billion. The deal is the largest technology acquisition in history.

CEO Michael Dell, who will run the combined company, stated that the move leverages EMC's dominance in storage to boost Dell's enterprise presence. 

This deal will reduce Dell's dependence upon the sagging personal computer industry and give it increased leverage to enterprise IT.

The deal will be funded with debt financing from Wall Street banks including Bank of America (BAC) and JP Morgan (JPM). Michael Dell and his partners are also expected to contribute a new equity investment.

EMC finished up 1.8% at $28.35. 

US Markets

Bonds markets were closed for today's Columbus Day holiday. There were also no economic data or earnings reports.

US equity markets were roughly flat for the day. The S&P 500 closed up 0.1%, while the NASDAQ rose 0.2%.

Utilities saw the best gains.

Energy and basic materials stocks saw the largest losses today due to declines in crude oil and other commodities, which soured the mood.

The dollar fell against most major currency pairings, but rallied slightly against the Canadian dollar. The Fed made investors uneasy at the annual autumn meeting of the IMF and World Bank in Lima, Peru.

Fed Vice Chairman Stanley Fischer stated that while the Fed is looking to raise rates this year, they are not completely committed to it. 

World Equity Markets

China's Shanghai Compsite jumped 3.3% after the China Securities Journal released a quote from a central banker stating that he believes the correction in China's markets is almost over.

Plus, retail sales during the "Golden Week" holiday were strong, boosting sentiment.

Investors are also looking forward to Beijing's meetings later this month, where decision makers will discussing their five-year plan. Japan's Nikkei was closed for holidays, but will open tomorrow.

Hong Kong's Hang Seng followed through from its mainland counterpart, finishing up 1.2%. The Korean Kopsi added 0.1%. 

Europe was flat for the most part as investors were concerned about oil prices.

The German DAX rallied just 0.2%, thanks to gains in utility companies as they passed several government stress tests. Meanwhile, the French CAC dropped 0.3%.

Glencore shares fell over 6% after the company announced plans to sell its copper mines in order to combat debt. The announcement dragged down other mining companies in Europe. Engine makers were also dragged down after the European Competition Regulators announced they will begin to investigate maintenance and servicing policies.

Tuesday's Financial Outlook

US economic data for tomorrow will include NFIB small business optimism.

Overseas economic data will feature German, British, and Chinese CPI, Japanese machine tool orders, and the German ZEW economic sentiment survey.

ASML (ASML), Fastenal (FAST), and Johnson & Johnson (JNJ) will release earnings before the open tomorrow. CSX (CSX), Intel (INTC), and JP Morgan (JNJ) will report after the close. 
No positions in stocks mentioned.
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