Diamonds and Dogs
Big Blue flexing its muscle lifting the Dow. IBM is up 8% to a five month high following earning. The company beat earnings estimates by 2 cents as revenue came in higher than expectations thanks to strong cloud revenue which rose 20%. IBM also modestly raises earnings expectations and received a couple upgrades. One analyst believes IBM will parlay their cyclical benefits into secular tailwinds in 2018 to drive sustained revenue.
Drug maker, Allergan (AGN) is down 3% and down 7% in the last two days to a 10 month low on news a U.S. judge on Monday essentially invalidated Allergan's move to transfer their blockbuster dry-eye medicine drug, Restasis patent to the New York state's Saint Regis Mohawk Tribe, claiming the group's status as a sovereign nation meant the patents could not be reviewed by the U.S. patent office. A creative move by Allergan, but it looks like our courts won't let it pass.