Diamonds and Dogs

1/17/18

Big Blue looks good ahead of earnings. IBM is up 2% ahead of earnings tomorrow thanks to an upgrade at Barclays with a $192 price target. The analyst thinks the narrative can favorably shift for shares of IBM after years of declining revenue; the company could be on the verge of showing stabilized sales or even returning to top-line growth. He's optimistic about the mainframe cycle and its ability to serve as a "buffer" while IBM progresses on newer initiatives. IBM could emerge as the next important cloud vendor after Amazon.

A few chinks in the bull market run. A number of banks Goldman Sachs (GS), Bank of America (BAC) and US Bancorp (USB) are lower by 2% following earnings this morning. In the short term, the new tax bill may be a negative for these finnancials. GE is continuing its slide from yesterday down 4% while Ford (F) said 2018 won't be any better than 2017. Ford is down 4%.

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