Although news from Europe was negative as earnings from SAP were weak, and rather than engaging in QE, the ECB decided bank stress tests are a better first step. (This would go into the “open book text” category.) Emerging markets were ragged weighed lower by Brazil and Russia while South Korea (never an emerging market in my mind) was quite strong.
Beyond horrible results from such bellwethers as IBM (-7%), Cisco (-1.50, Hewlett Packard (-1%) and Caterpillar (-1%) it was a day for the largest tech heavyweight Apple to carry the day up over 2.2%. Naturally, after the close, Apple (AAPL) will report earnings results and guidance, and clearly by today’s action the results are expected to be good.
Apple reported earnings of $1.42 vs $1.31 expected and revenues of $42 billion vs 39 billion expected. Much of the gains beyond good sales was from increased share buybacks. The stock is rising in after-hours trading but at previous levels of around $100 per share. Texas Instruments (TXN) stock was also sharply higher by nearly 3% while Chipotle (CMG) slid after offering weaker guidance going forward.
Despite the mixed bag from Europe and little news from Asia U.S. stocks managed decent gains across the board. But there'
Leading market sectors higher included: Tech (QQQ), Small Caps (IWM), Financials (XLF), Gold Stocks (GDX), Materials (XLB), Energy (XLE), Natural Gas Producers (FCG), REITs (IYR), Retail (XRT), Consumer Staples (XLP), Consumer Discretionary (XLY), Healthcare (XLV), Biotech (IBB), Utilities (XLU), Homebuilders (ITB), Semiconductors (SMH), Transports (IYT), South Korea (EWY), India (EPI), Turkey (TUR), Japan (EWJ), Spain (EWP) Solar (TAN), Gold (GLD), Silver (SLV) and Bonds (TLT).
Leading market sectors lower included: Dow (DIA), Brazil (EWZ), Russia (RSX), Hong Kong (EWH), Germany (EWG), The Dollar (UUP), Crude Oil (USO), Base Metals (DBB), Natural Gas (UNG), Agriculture (DBA) and Commodity Tracking (DBC)
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Volume on Monday’s rally fell 50% from previous trading days these past few weeks. Breadth per the WSJ was positive.
Markets are trying to follow-through with the previous Friday rally. The mood is to buy and volume is comparatively light. The tone is to discard all companies reporting large disappointments like IBM, CAT and so forth while embracing AAPL. This is the way of markets during the past few years.
There may be more overseas economic data and news but little from the US until Wednesday.
Let’s see what happens.
Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.
He is the author of "Create Your own ETF Hedge Fund: A Do-It-Yourself Strategy for Private Wealth Management" published by Wiley Finance and "The Best ETFs: U.S. Equities, A Companion Guide to Building Your ETF Portfolio".
Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com
|WTI Crude Futr||82.75||0.04||0.05 %||20:44|
|US Dollar||85.08||0.04||0.04 %||16:59|
|Brazil||2159.312||-3.08 %||-0.51 %||-2.65 %|
|Russia||579.800||-1.39 %||-5.13 %||-26.32 %|
|India||490.454||1.26 %||-2.03 %||20.41 %|
|China||61.720||0.66 %||0.09 %||-2.19 %|