9:00am (EST)
Yesterday started off good for the bears but ended better for bulls as they overcame a huge drop at the open and managed to turn the tables by the end of the day. The market fell 1% at the opening bell, but the losses were capped at the support levels we have been mentioning for weeks now.
The top-line misses on revenue numbers have been a target of the bears but some of the “brand names” that got trounced started to rebound which lift the entire market in general.
International Business Machines (IBM, $126.55, down $3.24) traded to a low of $123-ish and had accounted for over 50 points of the initial loss on the Dow but the impact on the index was sliced in half by the close. Goldman Sachs (GS, $148.91, up $3.23), which had previously closed around $145, traded to a low of $141.55 and nearly kissed $150 before ending the day 2% higher.
The market also overcame another weak housing report which showed a worse-than-expected decline in housing starts last month. The 5% decline took starts to an annualized rate of 549,000 units, which was below the rate of 575,000 units that had been forecast.
Despite all of the gloom and doom, the bulls pulled themselves off the canvas and came out smelling like a rose. The Dow finished Tuesday’s session with a 75 point gain, or 0.7%, to finish at 10,229 while the S&P 500 added 12 points, or 1.1%, and settled at 1,083. The Nasdaq ended with a pop of 24 points, or 1.1%, and closed at 2,222.
Futures are pointing towards a higher open this morning, thanks in part to Apple (AAPL, $251.89, up $6.31) which stole the limelight after the close yesterday. The company reported a profit of $3.3 billion, or $3.51 a share, versus $1.8 billion, or $2.01 a share, in the year earlier period. Analysts were looking for $3.11 a share. Revenue of $15.7 billion topped expectations for $14.8 billion.
So, just how many toys did Apple sell for the quarter? The numbers are staggering. When one of the company’s big-wigs says: “Let me be very clear on this. We’re selling every unit we can make”…well, you kind of have to believe they had a sick quarter.
Demand for the iPad and iPhone 4 has been off the charts as 3.3 million iPads were scooped up while 8.4 million smartphones were sold in the quarter. Better yet, Apple saw a huge jump in Mac sales, selling 3.5 million versus expectations for 3.2 million.
It was an incredible quarter for Apple, who, doesn’t seem to miss a beat. Shares are up $10, to $262, in early action. Naturally, futures got a lift on the news last night and have been strong ever since.
As we head to press this morning, Dow futures are up 44 points to 10,221 while the S&P 500 futures are higher by 7 points to 1,086. The Nasdaq futures are up 18 points to 1,857. Subscribers, check for the updates in the Members Area.
Tags: AAPL, Apple's earnings, call options, dndn, how to trade options, IBM, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, volatile options
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on Wednesday, July 21st, 2010 at 9:03 AM and is filed under Apple, Company Commentary, Earnings.
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Apple’s (AAPL) New Toys Impress Wall Street
9:00am (EST)
Yesterday started off good for the bears but ended better for bulls as they overcame a huge drop at the open and managed to turn the tables by the end of the day. The market fell 1% at the opening bell, but the losses were capped at the support levels we have been mentioning for weeks now.
The top-line misses on revenue numbers have been a target of the bears but some of the “brand names” that got trounced started to rebound which lift the entire market in general.
International Business Machines (IBM, $126.55, down $3.24) traded to a low of $123-ish and had accounted for over 50 points of the initial loss on the Dow but the impact on the index was sliced in half by the close. Goldman Sachs (GS, $148.91, up $3.23), which had previously closed around $145, traded to a low of $141.55 and nearly kissed $150 before ending the day 2% higher.
The market also overcame another weak housing report which showed a worse-than-expected decline in housing starts last month. The 5% decline took starts to an annualized rate of 549,000 units, which was below the rate of 575,000 units that had been forecast.
Despite all of the gloom and doom, the bulls pulled themselves off the canvas and came out smelling like a rose. The Dow finished Tuesday’s session with a 75 point gain, or 0.7%, to finish at 10,229 while the S&P 500 added 12 points, or 1.1%, and settled at 1,083. The Nasdaq ended with a pop of 24 points, or 1.1%, and closed at 2,222.
Futures are pointing towards a higher open this morning, thanks in part to Apple (AAPL, $251.89, up $6.31) which stole the limelight after the close yesterday. The company reported a profit of $3.3 billion, or $3.51 a share, versus $1.8 billion, or $2.01 a share, in the year earlier period. Analysts were looking for $3.11 a share. Revenue of $15.7 billion topped expectations for $14.8 billion.
So, just how many toys did Apple sell for the quarter? The numbers are staggering. When one of the company’s big-wigs says: “Let me be very clear on this. We’re selling every unit we can make”…well, you kind of have to believe they had a sick quarter.
Demand for the iPad and iPhone 4 has been off the charts as 3.3 million iPads were scooped up while 8.4 million smartphones were sold in the quarter. Better yet, Apple saw a huge jump in Mac sales, selling 3.5 million versus expectations for 3.2 million.
It was an incredible quarter for Apple, who, doesn’t seem to miss a beat. Shares are up $10, to $262, in early action. Naturally, futures got a lift on the news last night and have been strong ever since.
As we head to press this morning, Dow futures are up 44 points to 10,221 while the S&P 500 futures are higher by 7 points to 1,086. The Nasdaq futures are up 18 points to 1,857. Subscribers, check for the updates in the Members Area.
Tags: AAPL, Apple's earnings, call options, dndn, how to trade options, IBM, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, volatile options
This entry was posted on Wednesday, July 21st, 2010 at 9:03 AM and is filed under Apple, Company Commentary, Earnings. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.