Diamonds and Dogs
Big blue led the Dow higher on Trump's first day on the job. IBM rose 2% following better than expected earnings last night and raised guidance for the first quarter. The company said they exited 2016 in a stronger position with their fastest growing divisions contributing more and more revenue. The strategic imperative divisions (cloud, analytics, mobility, and security) rose 16% year over year delivering nearly $32 billion in revenue or 40% of total sales. The analyst at Stifel upgraded IBM with a $192 price target.
Another bad day for Bristol Myers (BMY). The stock dropped 11% back to the October 52 week lows after the company announced they will not pursue accelerated regulatory pathway for combination of Opdivo plus Yervoy in first-line lung cancer in the US based on review of data available at this time. Approval of the drug would've added billions to the company's annual revenue. Rival, Merck rose 3% on the Bristol news.