logo
  Join        Login             Stock Quote

AAPL Weighs On Nasdaq

 January 24, 2013 01:12 PM
 


The markets are mixed this morning with the S&P 500 making fresh highs while the Nasdaq languishes under the weight of AAPL shares.

I read the earnings release for AAPL and listened to the conference call and the results do not lend themselves to a -10% plunge in the share price.  It's tough to watch this as an investor but it really comes down to high expectations.  Traders were hoping for a bigger beat on the EPS number as well as higher unit sales for iPhones and Macs.  Mac sales were definitely light, as the company said they were capacity constrained on production.  So I'm not sure it's a softening demand issue. 

I think shares of AAPL remain very cheap, but the stock had simply become over-owned.  Every fund manager was already overweighted in shares of AAPL, so there just are enough new buyers out there relative to sellers.  And that is why the stock still hasn't bottomed.  I am hopeful that this quarter will mark the lows in the stock.  I sure hope AAPL's management wakes up and starts buying back its own stock.  They did a poor job of stock buybacks during the quarter.  They have $130 billion in cash and buying back stock at these levels would be a nice way of helping shareholders.

[Related -Fusion-IO, Inc. (FIO): Can Fusion-IO Q2 Results Cheer Street?]

Among other companies reporting earnings, I am seeing more stock showing positive reactions vs. negative ones.

Stocks rising on earnings: NFLX, MMM, MO, BMY, BGG, JBHT, GWW, AVT, AGU, PCP

Stocks falling on earnings:  AAPL, VAR, UNP, DBD, ARG, LMT

[Related -Netflix, Inc. (NFLX) Q4 Earnings Preview: What To Watch?]

Asian markets were mixed overnight.  China fell -0.8% depsite its HSBC Manuf. PMI rising to 51.9, its best level in 2 years.  S. Korea GDP came in a bit low at 0.4%.  N. Korea said it is planning another missile test.

European markets are also mixed today after the Eurozone PMI came in at 47.5, and the services PMI was 48.3.  Spain's unemployment rose to a record 26% and the youth unemployment component hit a whopping 55%.

The dollar is lower today, but commodities are mixed.  Oil prices are higher near $96, but gold and silver are lower with gold falling to $1669.

The 10-year yield is a bit higher to 1.86%.  And the volatility index is still hovering around 12.60.

Trading comment: The S&P 500 is higher for a 7th straight day.  We looked at several different measures of market breadth yesterday, and the market is overbought on nearly every one of the indicators we looked at.  While the timing is never perfect, that usually means a short-term pullback is in the cards.  So we would prefer to wait for such a pullback before adding to new or existing positions.

KAM Advisors has long positions in AAPL, BMY

iOnTheMarket Premium
Advertisement

Advertisement


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

rss feed

Latest Stories

article imageXerox Corp. (XRX): An Insider’s $500,000 Insider Buy

Last week was a healthy week of insider buying as 194 companies reported purchase records. The number read on...

article imageQihoo 360 Technology Co Ltd. (QIHU) Q2 Earnings Preview: A Green Monday

Qihoo 360 Technology Co Ltd. (NYSE:QIHU) will report its second quarter 2014 financial results on Monday, read on...

article imageSix Stocks that Could Outperform in the next 90 days

Earlier today, Goldman Sachs put out its list of the 50 stocks that Matter Most. It’s a list of the 50 read on...

article imageFoot Locker, Inc. (FL) Q2 Earnings Preview: Running Past the Street View

Foot Locker, Inc. (NYSE:FL) plans to report financial results for its second quarter ended August 2, 2014 read on...

Advertisement
Popular Articles

Advertisement
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.