Join        Login             Stock Quote

Will Earnings Season Boost Stocks?

 January 09, 2013 11:36 AM

The market is higher in early trading as earnings season officially kicked off last night.  There were only a small handful of companies reporting, but so far the reactions in stocks has been mostly positive.  It will be important to see how stocks continue to react to earnings reports going forward as well as what management's have to say about the business environment and any impact they see from the fiscal cliff issues.

The few stocks trading higher after reporting include AA, STZ, and WDFC.  One stock that disappointed and is trading down is APOL.

AAPL is also trading lower despite news that it may launch a lower-end iPhone during the second half of the year.  AAPL is trying to build a base near the $520 price support.  If they report a solid Q4 earnings figure, I think having this base building could help propel the stock back above its 50-day average which it first broke below on October 5th. 

[Related -Google Inc (GOOG): Why Nest Labs Deal Is A Wakeup Call For Apple Inc.?]

Asian markets were mixed overnight.  Japan was higher after the Bank of Japan plans to adopt a 2% inflation target and double the size of its asset purchase program.  China closed flat last night.

Europe is also mixed today.  Final Eurozone GDP for Q3 remained at -0.1%.  Germany's industrial production came in below expectations at 0.2%.  And Poland cut its key interest rate by 25 basis points to 4.00%.

The 10-year yield is flat near 1.87%.  And the volatility index is lower again down to the 13.50 level.  Hard to believe a little over a week ago it was spiking to 23. 

[Related -Apple Inc. (NASDAQ:AAPL): Why Gross Margins Will Expand In 2014 and Beyond?]

Trading comment: If you look at the chart of the S&P 500, you'll see that after that big spike higher on Jan. 2 the market really hasn't given much back.  We had a chance the last couple of days to selloff more, but the market usually found its footing and closed off of its intraday lows.  Today is basically the 5th day that the SPX has hovered around that 1460 level, and the sideways consolidation has allowed the market to work off its overbought condition.  It now appears that this brief rest could be enough to give the market a chance to work higher again.  With the fiscal cliff at least partially behind us, folks seem more inclined to continue to put money to work in the market.  For now the price/volume appears constructive.

KAM Advisors has long positions in AAPL



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.