Apple’s X Factor
Is Apple losing its X-factor? Apple (AAPL) fell on Monday after the Japanese newspaper, Nikkei, reported that the iPhone maker would be halving production because of weak sales. The market’s response was not slow in coming. At one point in the day, AAPL shed 2.6% of its value, and traded at the $167.07 level. The stock succeeded in recovering slightly towards the end of the day, but it seems that traders’ are full of nervous anxiety in advance of the company’s report come Thursday.
Also in the tech sector, AMD rallied higher by over 2% after MKM Partners shared that the demand in the digital currency market for its products will fuel a strong 4th quarter. AMD’s main competitor, NVIDIA (NVDA) also recorded nice gains on the day.
On the heels of the fall in Apple, the market fell as well. At the bottom edge of the day, the S&P 500 and the NASDAQ traded off 0.7%. We’re not in disaster zone at the present time.
Daily Summary: The Dow Jones fell 0.67%, the S&P 500 also shedding 0.67%. The NASDAQ retreated 0.52%.
The earnings season work is playing perfectly into the market’s hand! As of now, 76% of the companies that have reported have beaten their earnings forecasts, and 81% have outstripped revenue forecasts. These 2 figures are substantially above the long-term historic average. In effect, in the event the 81% figure holds water until the end of the quarter, it would be the best reading since Q2 2011, when the figure stood at 72%.
Revenue growth now stands at 12%, each and every sector recording growth. Back in December, analysts had expected growth of 11%.
Another stock standing out in yesterday’s trading was the casino house, WYNN, which was slashed 6.6% after the company reported that it was establishing an investigative committee into the alleged sexual harassment on the part of company CEO, Steve Wynn.
Tuesday: The Federal Reserve will be convening today for its period 2-day policy meeting, in what stands to be the last meeting in which Janet Yellen will be presiding as Fed Chair. At the end of the month, she will pass the reins to incoming Fed Chair, Jerome Powell. The Fed meeting will conclude of Wednesday with a policy announcement at 14:00 N.Y. time. Yellen’s last day in the role will be this Friday.
Yellen will be leaving the Fed after presiding as Fed Chair for 4 years, and in this period, she spearheaded a gradual process of interest rate normalization, while lowering the balance on the Fed’s books. The central bank is not expected to make any monetary policy move this week – and investors are expecting the next rate hike to be executed in the Fed’s March meeting. All-in-all, the Fed expects to hike rates three times this year.
Tuesday’s Hot Stocks: MET, MCD, TROW
Have a great trading day!
|Tuesday||9:00||S&P Corelogic Case-Shiller||0.6 %||Medium|
|Wednesday||8:15||ADP Employment Report||195,000||High|
|Wednesday||10:00||Pending Home Sales Index||0.4 %||Medium|
|Wednesday||10:30||Oil Inventories||-1.1 M barrels||Low|
|Wednesday||14:00||FOMC Meeting Announcement||1.375 %||High|
|Thursday||8:30||Jobless Claims||235 K||Medium|
|Thursday||9:45||PMI Manufacturing Index||55.5||Medium|
|Thursday||10:00||ISM Mfg Index||58.7||High|
|Thursday||10:00||Construction Spending||0.5 %||Medium|
|Friday||8:30||Unemployment Rate||4.1 %||High|
|Friday||8:30||Average Hourly Earnings||0.3%||High|
|Friday||10:00||Factory Orders||1.5 %||Medium|
Today’s Picks – Day Trading!
New York Strategy Swing