Courtesy of Blain.
The S&P 500 opened in the red and really didn’t emerge north of unchanged much of the session while the NASDAQ chopped around in a tight range. The S&P finished with a loss of 0.52% while the NASDAQ fell 0.05%. Earnings were mostly uninspiring today despite low expectations. European stocks were mixed after the European Central Bank kept rates unchanged and ECB President Mario Draghi said he expects rates to remain at present or lower levels for an extended period. It is interesting that those sort of comments did not give Europe more of a charge as traders love the smell of cheap money in the morning.
“I think we’re having a mildly above average earnings (season) but that’s probably not going to drive the market much higher,” said Mike Bailey, director of research and chair at FBB Capital Partners.
Interesting: There is a hedge fund that has raised $100M solely to short one company. That company will be revealed in a few weeks. That’s a first.
As you can see below the S&P 500 is approaching late 2015 highs. The NASDAQ poked out of this yellow base but not much oomph to it and it has been stuck in the new slightly higher purple base.
Pulled back nicely on the NYSE McClellan Oscillator so now nowhere near overbought.
Ten year Treasury yields hit their highest level in about a month.
Precarious spot here for Apple (AAPL) as it comes back to this downtrend line.
Raymond James analyst Tavis McCourt trimmed his estimate of iPhone unit sales for June and September after Qualcomm’s earnings, writing the chipmaker’s guidance “provides further evidence that iPhone hangover is not over yet.” “Overall, we view the iPhone as a product line that is maturing,” McCourt wrote in a research note. “We still expect a rebound in iPhone trends with the iPhone 7 this fall, but are generally more sanguine than street consensus.”
Travelers (TRV) sunk after the firm reported earnings of $2.30 a share, down 10 percent from a year-ago, hurt by hail storms in Texas in March. Storms in Texas are expected to add to losses in the second quarter for Travelers’ and other insurers, Reuters said. Total revenue rose 1 percent from the same period last year.
Verizon (VZ) fell after the phone company said an ongoing strike by its wireline workers was expected to hurt earnings in the current quarter. The firm posted first-quarter net income that met expectations amid strong table sales.
Biogen (BIIB) earnings topped expectations, helped by aggressive cost cutting.
United Continental (UAL) fell 10% to lead transports down.
Under Armour (UA) topped Wall Street earnings expectations and revised its full-year revenue guidance slightly higher. Under Armour’s footwear revenue was up 64% to $264 million from one year ago, driven by demand for Steph Curry’s basketball line.
