Apple Earnings: Investors are Holding Their Breathe
August is already here, after a great show in wall street for the month of July. In July, the S&P 500 rose 1.9%, the Dow added 2.5% and the Nasdaq gained 3.4%. The dollar index (UUP) ended the month with a 2.9% loss, its worst since March 2016. Gold gained 2.5% in its best monthly performance since February.
The Dow Jones Industrial Average hit a record closing high on Monday, helped by Boeing (BA), while selling in Facebook (FB), Google (GOOGL) and other technology companies checked the S&P 500 and pulled the Nasdaq lower.
Technology sector (XLK) dipped 0.53% with Facebook (FB) falling 1.86% and Google (GOOGL) down 1.34%. The bull market is sort of broadening out and people are taking a few profits off the table on some of these stocks that have done exceedingly well.
Boeing (BA) rose 0.49% and hit a record high of $242.46 after JPMorgan raised its price target on the world’s biggest plane maker to $280 per share.
Investors have been counting on earnings to support high valuations for equities.
In summary: The Dow Jones finished the day up 0.28%, The S&P 500 lost 0.07% and the Nasdaq dipped 0.42%.
Tesla (TSLA) dropped 3.46% after Chief Executive Elon Musk warned that the electric carmaker would face “manufacturing hell” as it ramps up production of its new mass-market Model 3 sedan.
About 6.3 billion shares changed hands in U.S. exchanges, above the 6.0-billion average over the last 20 sessions.
Tuesday: August trading kicks off Tuesday on what could be one of the more important market days of the summer. The PCE inflation data report, which is closely watched by the Fed and a key to its decisions on interest rates, leads a series of major economic reports, including personal income and spending, and car sales.
Before the bell, there are dozens of earnings reports, from companies such as Pfizer (PFE) and Under Armour (UAA), but the market is really waiting for Apple (AAPL) earnings after the bell. Apple is expected to report adjusted earnings of $1.57 per share, a nearly 11 percent gain, on a six percent jump in revenue to $44.89 billion in the 2nd quarter.
It’s going to be the pivotal day of the week. Usually you say it will take a back seat to the jobs number. But today everything is on the ‘A’ list. Given the recent slump in tech, everything Apple says could be a big deal. We really want to hear what they say about guidance. We want the tell. The market is looking for details on the iPhone 8 and its release date.
Tuesday morning’s data could set the tone across financial markets, as investors position for the new month.
The inflation data is key since Fed Chair Janet Yellen, when she testified before Congress in July, pointed out that the central bank is concerned about the weak trend. The market responded by becoming even more skeptical that the Fed would raise interest rates again this year.
There are dozens of earning report today, among them: BP, CMI, CME, PSX, NFX, DVN and COG.
Hot Stocks: TXRH, SLCA, ALSN, BP, CME, PSX, UAA, SHOP, RCL
Have a great trading day!
|Monday||10:00||Pending Home Sales||–||Medium|
|Wednesday||8:15||ADP Employment Change||–||High|
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