Courtesy of Blain.
In what was generally a quiet day we had some fireworks in Twitter (TWTR) in the closing hour as its earnings were released early causing the stock to halt and then re-open and plunge. More on that later. As for the indexes the S&P 500 gained 0.28% while the NASDAQ fell 0.10%. Many people tend to sit on their hands the day ahead of a Fed announcement, which comes tomorrow.
“The market is very content with the earnings and its a stubbornly strong market, and I suspect another reason for today’s climb is investors feel confident the FOMC statement … is not going to be (too) hawkish and interest rates stay on hold,” said Peter Cardillo, chief market economist at Rockwell Global Capital.-
We mentioned an “outside reversal day” in the NASDAQ yesterday; interesting to see Apple (AAPL) had the same thing happen to it today. To reiterate in the “old days” before the Federal Reserve made its mandate to push up the stock market, these outside reversal days were very short term bearish. But all bets are off in a central bank dominated market.
We’ll review individual stock charts today via Marketsmith.
The obvious big move today was Twitter (TWTR) – below you can see the intraday chart via Yahoo Finance and the plunge in the closing hour as earnings were released early and the market didn’t like them. Guidance is a big issue. Below that is a historical chart.
Twitter (TWTR) shares came under heavy pressure Tuesday amid disappointing first-quarter figures and a dimmed full-year outlook. The micro-blogging site revealed a net loss of $162 million, or 25 cents a share. On an adjusted basis, earnings came in at seven cents a share, topping expectations in a FactSet Research Systems survey by three cents. Sales of $436 million, up 74% from the prior year, missed estimates of $456 million. Average monthly active users, a closely-watched statistic, came in at 302 million, essentially matching estimates, and marking an 18% increase from the same period in 2014. For the full-year, Twitter sees revenue of $2.17 billion to $2.27 billion, lower than the $2.37 billion Wall Street analysts were forecasting. Selerity, a company that focuses on real-time news, data and content analytics, tweeted the results at 3:07 p.m. ET, well ahead of the scheduled release after the close of trading.
We said yesterday Apple was up 1.5% in after hours but anything can happen by the next day. Well it started out as a solid day but sellers eventually showed up. Apple (AAPL) had an outside reversal day as we mentioned above – rising over the previous day high then falling down below the previous day’s low and closing there.
GoPro (GPRO) had a good day in the regular session – then tacked on another 9% in after hours on earnings.
Wearable camera maker GoPro Inc (GPRO.O) reported quarterly profit and revenue that beat Wall Street expectations as sales surged outside of the United States. GoPro, which makes cameras used by surfers, skydivers and other action junkies, said international sales accounted for more than half of revenue in the first quarter. The company said sales from markets, including Europe and Asia Pacific, jumped 66 percent. GoPro, whose devices account for the five top-selling camera or camcorders in the United States, has said international expansion was a key part of its efforts to boost revenue growth.
Net income attributable to GoPro shareholders nearly doubled to $16.8 million, or 11 cents per share. Excluding items, the company earned 24 cents per share. Revenue rose to $363.1 million from $235.7 million. Analysts on average had expected earnings of 18 cents per share on revenue of $341 million.
Coach (COH) plunged 6%+, the biggest drop since last June, after posting North American comparable sales that fell below analysts’ targets in the third quarter. Currency effects also took a toll last quarter, reducing the value of its overseas revenue.
