Markets wavered on Monday after shares of International Business Machines Corporation, better known as IBM, were slipping. The company posted a 4% decline in quarterly revenue for the third-quarter. The company said that revenue overall fell to $22.4 billion, which was down from the $23.34 billion this time last year. This missed analysts’ expectations of $23.37 billion. Profit from continuing operations also dropped to $3.46 billion, or $3.46 per share, from $4.14 billion, or $3.77 per share, this time last year. Chief Executive, Ginni Rometty, said, “We are disappointed in our performance. We saw a market slowdown in September in client buying behavior, and our results also point to the unprecedented pace of change in our industry.” The company has been taking steps to refocus their efforts on high-end products like Cloud and mobile security. Daniel Ives, an analyst with FBR Capital Markets, said that “IBM needs to find success and growth in the cloud through organic and acquisitive means in our opinion, otherwise there could be some darker days ahead for the tech giant (and it’s investors.)”
Shares of General Motors (GM) were relatively flat on Monday after it was reported that the total number of deaths related to the ignition switch defect has climbed to 29. Since the company began taking claims for deaths and injuries related to the defect, there have been 1,517 claims submitted. The problem with the vehicles were with the ignition switch. It could slip out of place and cause the vehicle to stall and disable the airbags. This problem lead to a recall of nearly 2.6 million cars and massive criticism of GM for waiting 11 years to place the recall after learning of the issue. To date they have accepted 56 claims that are eligible for compensation, 29 deaths and 27 injuries.
Toyota Motor Corp announced a new recall that will include 247,000 vehicles in the United States. The company said the recall is being placed due to a defective front passenger air bag inflator. There is a possibility that they could rupture and shoot out metal shrapnel. A Japanese company called Takata Corp. made the inflators. Models of vehicles affected were made between 2002 and 2005 and include the Lexus SC, Toyota Corolla, Corolla Matrix, Sequoia SUV and the Tundra full-size pickup.
Warren Gates, Normandy Research