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Thursday, March 28, 2024

Market Recap Apr 27, 2016

Courtesy of Blain.

Indexes were in the red much of the day until the Fed announcement when most turned green (except the NASDAQ which was dragged down by Apple).  The S&P 500 gained 0.16% while the NASDAQ fell 0.51%.   The Federal Reserve kept rates unchanged and continues to expect “only gradual increases” in the Fed funds rate.  The Federal Open Market Committee’s post-meeting statement said, “economic activity appears to have slowed” and that “growth in household spending has moderated, although households’ real income has risen at a solid rate and consumer sentiment remains high.”

“The Fed was a non-event. The market continues to decouple on oil prices and the market is continuing to focus on fundamentals and earnings,” said Kevin Mahn, president and CIO at Hennion & Walsh Asset Management.

The S&P 500 pulled back from late 2015 highs but has held above the 20 day moving average so looks fine.  The NASDAQ has less of an appealing look as it fell below the 200 day moving average intraday but held it with the late day Fed rally.

spx

nasdaq

It has been interesting to see the NYSE McClellan Oscillator put on some 30 pts in 2 days on the back of 2 very modest rallies.

NYMO

Oil continues to act well.

wtic

Considering the poor day in Apple (AAPL) – and its heavy weight on the NASDAQ – that index did fairly well on the day.

aapl

Facebook (FB) had put in a bearish double top and has acted weak of late but today’s earnings were a booster shot and the stock is surging 9% to the $118s in after hours.   Mobile ads are now >80% total ad revenue – an amazing switch from just 3 years ago.

The social media company reported more active users and posted quarterly earnings that were well above analyst estimates. The company reported adjusted first-quarter earnings of 77 cents per share on revenue of about $5.38 billion. Analysts had expected Facebook to report earnings of about 62 cents per share on $5.26 billion in revenue.

Facebook also reported Wednesday that monthly active users, a key metric for the company also known as MAUs, were 1.65 billion at the end of the first quarter. Wall Street had only expected 1.63 billion. The earnings announcement included a proposal that would create new class C shares, a move that could allow Facebook CEO Mark Zuckerberg to liquidate some of his shares while maintaining control in the company.

“The company consistently ‘warns’ about higher spending, but they consistently manage their spending to deliver earnings upside. They’re an impressive company, and they leave very little room for criticism,” said Wedbush Securities analyst Michael Pachter, who called the operating margin a good surprise.

fb

Paypal (PYPL) rallied 2.5% in after hours after the payment technology firm reported better-than-anticipated quarterly results, thanks to the addition of new merchants like Air France, Crate and Barrel, Fresh Direct, Panera Bread, and Sephora. Earnings hit 37 cents per share, excluding items, the company said, more than the 35 cents predicted by analysts. Sales were $2.54 billion in the first quarter, above the $2.5 billion expected.

pypl

Boeing (BA) reported earnings that missed but revenues that beat.

ba

A huge wall of earnings Thursday include:  Altria, Celgene, Ford, MasterCard, UPS, Amazon.com, Amgen, Baidu, Gilead Sciences, LinkedIn,

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