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T3's Take 3: Uncle Warren Goes Shopping, Pays Up in the Aerospace Aisle


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

Today on T3 Live

T3 Live's Sean Udall is hosting a special webinar on tech stocks this coming Tuesday.

He's making a pretty bold case to get out of hot names like Netflix (NFLX) and Ambarella (AMBA), so you may want to consider hearing him out.

Click Here Now to Sign Up!

World Markets

US stocks pushed higher today  after Federal Reserve Vice Chairman Stanley Fischer told Bloomberg that he doesn't expect the first rate hike to occur until after inflation returns closer to the Fed's 2% target. In recent months, inflation has been hovering around 0% and hasn't been above the 2% level since April 2012.  The S&P 500 rallied 1.3%.

European markets were green as well. The French CAC gained 0.8% and the German DAX jumped 0.99%. Greece's Athens Composite Index managed to finish up 2.1% higher today as discussions for a  third bailout for Greece appeared to advance over the weekend.

Asian market showed a more mixed picture after China posted weak economic data. China's July trade numbers showed exports falling by 8.3%, while imports fell 8.1%. Year-to-date, China's imports and exports are down 0.8% and 14.6%, respectively. The Shanghai Composite managed to rally 4.9% despite the numbers due to expectations of government intervention, while Japan's Nikkei rallied 0.4%.

Deal Time

Warren Buffeft's Berkshire Hathaway (BRK.A) announced it will pay $32 billion for aerospace and industrials supplier Precision Castparts (PCP).

Shares of Precision rose 19.1% to $230.92, helping make industrials one of the better performing sectors on the day.

Buffett himself admitted that Berkshire is paying a fairly high premium for Precision, which will help Berkshire diversify away from its financial businesses.

Alibaba (BABA) shares jumped 2.1% today after the company announced that it will acquire a 20% stake in electronics retailer Suning. Alibaba will be paying an estimated $4.6 billion for its stake. Suning is one of China's biggest online electronic retailers that has been hurt by competitive pressures in recent years. Alibaba's chief's executive Daniel Zhang, mentioned in a conference call that the company will use Suning's large number of retail outlets to sell groceries and other items outside Suning's core consumer electronics business.

Commodities Jump Back

The Bloomberg Commodity Index posted its biggest intraday gain since February today. Last month saw the worst performance for commodities since September 2011. Oil prices climbed from their lowest price in almost five months after China's crude imports rose, calming investors about Chinese demand.

Copper prices rallied after rains Chile caused mudslides, halting production in some of the world's biggest copper mines.

Meanwhile, satellite images are showing that increased moisture is worsening the outlook for US crop yields, which caused corn futures' prices to rally.

Tuesday's Financial Outlook

US economic data for tomorrow will include NFIB small business optimism, nonfarm productivity, unit labor costs, wholesale inventories & trade sales.

Overseas economic data will include German & Euro-zone ZEW survey, and Australian comsumer confidence.

Aecom Tech (ACM), AerCap (AER), and QIWI (QIWI) will announce earnings before the open.

Computer Sciences (CSC), and Symantec (SYMC) will release their earnings after the close.
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