Diamonds and Dogs
Merger Thursday. U.S. regional lender BB&T (BBT) is buying out rival SunTrust Banks (STI) for $28 billion creating a combined bank worth $66 billion with assets of $442 billion. Today's deal is the world's largest bank merger in more than a decade, creating the sixth-biggest commercial bank in the U.S. The $28 billion deal scraps both companies' names and headquarters, creating an entirely new bank based in Charlotte, North Carolina. This deal is the potential first step in a long-awaited wave of consolidation in the sector.
Bad day to report earnings. The online food delivery company, GrubHub (GRUB) is down 17% after missing earnings and sales guidance. The social-media company, Twitter (TWTR) is down 10% following lackluster earnings and lower guidance. The cybersecurity firm, FireEye is fizzling today down 11% following earnings and weaker-than-expected guidance. Retailer, Tapestry (TPR), the parent for Coach and Kate Spade, is down 17% following disappointing earnings, sales and lower guidance.