Diamonds and Dogs
Bristol-Myers Squibb (BMY) finally rebounding. Drug maker, Bristol is up 4% after initially opening down 2% after acknowledging their top-selling cancer drug faces challenges in the coming years with a clinical trial setback. But thanks to better than expected earnings and revenue up 10% to $6.27 billion, ahead of estimates, the stock is moving nicely higher. Bristol is also expecting to broaden their drug portfolio with the acquisition of Celgene for $74 billion later this year or next year.
Tesla (TSLA) is having a tough day. The battery car maker is down 14% following disappointing earnings. Tesla badly missed earnings even as sales rose 58% to $6.35 billion. Tesla had to cut prices to generate more sales. Good news in the short run, but bad news for the long run. Tesla generated $614 million in free cash flow and has $5.0 billion of cash and cash equivalents so there are no liquidly issues, but longer term, Tesla needs to drive down costs and boost profitability of their battery cars. Rival, Ford (F) isn't doing much better down 6% following earnings.