First up, and I’ll report it soon enough, is Apple’s (AAPL) earnings report. We’ll see if Wall Street analysts have lowered earnings forecasts enough to beat expectations once again. (sigh) Then its Yellen & Co turn to finesse a message saying once again everything and nothing regarding monetary policies and the condition of the U.S. economy and etc.
Otherwise bulls continue to manage market behavior keeping the recent rally together come hell or high water. The dip buyers remain in charge no matter how few of them there are, since you’ll note volume has dried up (only roughly 66M in SPY shares traded.)
Not that it matters to bulls, but most economic data Tuesday wasn’t impressive as PMI Services index climb to a still soft 52 vs 51; Durable Goods Orders rose to 0.8% vs a lowered prior report to -3.1% while ex-Transportation weakness remained at -0.2%; The Redbook continued to show consumer weakness; and, Consumer Confidence fell a sharp 94.2 vs prior 96.1.
The markets remained subdued most of the day with only crude oil, emerging markets, commodities (all stronger) and the dollar (weaker) commanding attention.
Apple reported a decline in revenues and profit nearly 22.5% which was the first since 2003. So that’s a big miss with the stock falling in after-hours trading falling roughly 6%. It’s hard to know if the stock is as over-owned as it was at the end of 2015. Nevertheless, the company’s heavy weighting in indexes no doubt remains substantial. Twitter reported earnings which also disappointed with after-hours trading being down approximately over 11%.
Below is the heat map from Finviz reflecting those ETF market sectors moving higher (green) and falling (red). Dependent on the day (green) may mean leveraged inverse or leveraged short (red).
Volume showing another light day before all the important data after the close Tuesday and the Fed Wednesday. Breadth per the WSJ was positive.
Chart Of The Day
This is another short report but things will change after the Fed meeting at 2 PM Wednesday.
There should also be some sharp declines in tech area once again given how weak earning are being reported by heavyweights in the sector.
Let’s see what happens.
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