Courtesy of John Nyaradi.
ETFs and stocks grind higher on mostly positive economic reports but Apple misses on earnings after hours
After a tough week, U.S. ETFs and stocks regained some traction today, but Apple (NASDAQ:AAPL) slipped 1.2% in the regular session before reporting earnings that missed estimates.
Today was a big day for economic reports with news regarding unemployment, durable good, national economic activity and pending home sales. Most of the news was good and stocks and ETFs seemed to like what they saw. Five Economic Reports On Thursday.
Still, earnings remain a concern and Apple (NASDAQ:AAPL)didn’t help anything in that regard as the company missed earnings estimates. Amazon added to the gloom in the tech sector (NYSEARCA:XLK) as the company reported a loss and its stock (Nasdaq:amzn) fell 2.4% in the regular session. Overall, earnings remain weak and cast a pall over recent market activity. Stocks Remain On Edge Through Earnings Season
Major U.S. ETFs:
Dow Jones Industrial Average (NYSEARCA:DIA) +0.2%
S&P 500 (NYSEARCA:SPY) +0.3%
Nasdaq 100 (NYSEARCA:QQQ) +0.08%
Russell 2000 (NYSEARCA:IWM) +0.39%
Select Sector Technology ETF (NYSEARCA:XLK) -0.2%
On a technical basis, the S&P 500 (NYSEARCA:SPY) remains in a downtrend with negative momentum and on a “sell” signal. The index is below its 50 day moving average which points to short term weakness but has managed to hold on so far to its 200 day moving average which sits around 1376. Major support for the S&P 500 (NYSEARCA:SPY) is found at the 1390-1400 level and a significant breach below this level would have bearish implications.
Tomorrow watch for how Apple’s (Nasdaq:AAPL) affects the market and we also get an important reading on Q3 GDP and University of Michigan Consumer Sentiment.
Bottom line: ETFs and stocks continue to struggle with weak earnings, even from the country’s most powerful companies, as economic reports point to growing underlying strength.
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