It will be interesting to see if IBM ( IBM) decides to make another run at Sun here, which we may hear more about later in the day when IBM reports earnings after the bell.
Shares of Oracle have held up better than most other tech plays in the downturn, dropping about 20%. The stock does need to hold the $15 support level on any downdraft. If the stock can firm up, we see $19 to $21 as levels of overhead resistance. We would remain on the sidelines for now, but will take our cue from how the market reacts to this large acquisition. Oracle holds a Dividend.com DARST Rating of 3.1 out of 5 stars.
These results easily beat the average analyst estimate for earnings of 5 cents per share. However, much of the bank's profits for the quarter were derived from recent mergers and one-time gains. Merrill Lynch, which merged with Bank of America in January, contributed more than $3 billion to BofA's net income in the latest quarter.
We removed shares of BofA from our "Recommended" list back on Sept.15 when the shares were at $33.74. We had the shares briefly on our list from the $32.23 price point. The company has a 0.38% dividend yield based on Friday's closing stock price of $10.60. The stock has technical support in the $5 to $7 price area. If the shares can rebound from today's drop, we see overhead resistance around the $11 to $14 price levels. BofA is not recommended at this time, holding a Dividend.com DARST Rating of 2.8 out of 5 stars.