Dow climbed 27, advancers were slightly ahead of decliners but NAZ dropped 12 after a disappointing report from Apple. Banks were steady with the Financial Index up a fraction in the 172s. The MLP index rose 3 to the 363s & the REIT index fell a fraction in the 214s. Junk bond funds were flattish as were Treasuries. Oil & gold are also marking time on a quiet day for the markets.
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Photo: Yahoo
Apple shares fell sharply after a rare quarterly earnings miss, but some view the drop as a buying opportunity. Quarterly results missed expectations for the first time in years as customers held off buying iPhones until the latest version came out in Oct. The report was the first under CEO Tim Cook, who took over from Steve Jobs in Aug. AAPL is battling Google (GOOG) in the mobile arena, as well as other challengers such as Samsung & Amazon (AMZN). 17M iPhones were sold in its Q4 (ended Sep 24), well short of 20M forecast. The iPhone is flagship product at AAPL, providing 40% of sales. The stock fell $20 from record leves.
Apple Misses Wall Street Estimates, Shares Fall
Photo: Yahoo
Intel, a Dow stock, Q3 results offered some comfort for investors jittery about the weak state of the global computer market. Net income rose 17% & revenue rose 29%, topping estmates. CEO Paul Otellini credited stronger sales of processors for laptop PCs & servers. The company also boosted its stock buyback program by $10B & offered strong revenue guidance for the all-important holiday Q4. Nonetheless, these numbers are unlikely to reflect a meaningful change in the underlying dynamics that threaten to keep computer demand sluggish into the foreseeable future. Consumers are hanging on to their PCs longer & many corporations are doing the same. The US & European markets are particularly weak & have contracted, a rare & troubling development for markets that had been mostly steadily expanding for decades. CFO Stacy Smith described European markets as "pretty subdued" & said demand in the US during the qtr was merely "OK." However emerging markets were strong as was corp spending on INTC chips. Smith cautioned there was uncertainty heading into the Q4, but emphasized that spending in emerging markets & by corps remains strong. EPS was 65¢, above 52¢ last year. Excluding special items, EPS was 69¢ beating expectations of 62¢. Revenue was $14.2B, above $11.1B last year & beat forecats of $13.9B. For Q4, INTC predicts revenues of $14.2-$15.2B (analysts are expecting $14.2B). The stock liked the news & jumped 88¢.
Intel Shares Gain After Forecast Tops Estimates
Photo: Yahoo
The Labor Dept reported the Consumer Price Index rose 0.3% in Sep, below a 0.4% rise in Aug. Excluding food & energy, core prices increased 0.1%, the smallest rise since Mar. Food prices rose 0.4%, pushed up by big increases in the dairy, cereals, & fruits & vegetables categories. Gas prices rose 2.9% (dairy prices have jumped 10.2% in the past year & gas prices have soared 33.3%), key reasons overall inflation has jumped 3.9% in the 12 months (the largest year-over-year increase in 3 years). Core prices have increased 2% for the same period. At the same time, inflation-adjusted average hourly earnings fell 0.1% in Sep. In the past year, average inflation-adjusted hourly earnings dropped 1.9%.
Consumer Prices in U.S. Rise at Slower Pace
Photo: Yahoo
AMR (parent of American Airlines) reported a larger-than-expected quarterly loss from high fuel costs & volatile foreign exchange rates. The loss was blamed on the soaring price of fuel & a Sep spike in the value of the dollar, which erodes overseas sales as well as the value of funds repatriated by US companies. The results were weaker than many forecasts because of the forex loss & the losses related to ineffective fuel hedging. AMR is the 3rd-largest US airline & is the only major carrier expected to post a Q3 loss. Analysts debate the chances of a bankruptcy filing as it works to cut its labor costs. The Q3 loss 48¢ compared with a profit 39¢ a year earlier. On that basis, expectations were for a loss of 41¢. Revenue was $6.4B, in line with expectations. AMR ended Q3 with $4.8B in cash & short-term investments, including a restricted balance of $474M. "While the third quarter was challenging for American Airlines, we are taking aggressive actions to improve the company's performance and strengthen its foundation for long-term success," CEO Gerard Arpey said. Industry experts now await updates on AMR's efforts to reach a labor contract with its pilots union. The stock dropped dime to $2.71.
There was a report that the powers in Europe will be able to use Scotchs-Tape to patch up their debt problems. But few are buying into it. Greece is trying to clean up up its mess on the streets without much success. Then there are differences of how much of a haircut (loss) banks will have to accept on Greek debts. Earnings are on the drab side. Efforts to reduce the massive US debt seems years away. Dow has been stuck in a sideways trading range for 3 months (see below). Bulls can not break thru the 10.6K ceiling, a negative sign.
ALERIAN MLP Index (^AMZ)
DJ REIT INDEXDJR (^DJR)
Treasury yields:
U.S. 3-month | 0.025% | |
U.S. 2-year | 0.270% | |
U.S. 10-year | 2.183% |
| CLX11.NYM | ...Crude Oil Nov 11 | ...88.47 | ... 0.13 (0.2%) |
| GCV11.CMX | ...Gold Oct 11 | ......1,654.50 | ... 2.70 (0.2%) |
Get the latest market update below:
Apple shares fell sharply after a rare quarterly earnings miss, but some view the drop as a buying opportunity. Quarterly results missed expectations for the first time in years as customers held off buying iPhones until the latest version came out in Oct. The report was the first under CEO Tim Cook, who took over from Steve Jobs in Aug. AAPL is battling Google (GOOG) in the mobile arena, as well as other challengers such as Samsung & Amazon (AMZN). 17M iPhones were sold in its Q4 (ended Sep 24), well short of 20M forecast. The iPhone is flagship product at AAPL, providing 40% of sales. The stock fell $20 from record leves.
Apple Misses Wall Street Estimates, Shares Fall
Apple Inc. (AAPL)
Photo: Yahoo
Intel, a Dow stock, Q3 results offered some comfort for investors jittery about the weak state of the global computer market. Net income rose 17% & revenue rose 29%, topping estmates. CEO Paul Otellini credited stronger sales of processors for laptop PCs & servers. The company also boosted its stock buyback program by $10B & offered strong revenue guidance for the all-important holiday Q4. Nonetheless, these numbers are unlikely to reflect a meaningful change in the underlying dynamics that threaten to keep computer demand sluggish into the foreseeable future. Consumers are hanging on to their PCs longer & many corporations are doing the same. The US & European markets are particularly weak & have contracted, a rare & troubling development for markets that had been mostly steadily expanding for decades. CFO Stacy Smith described European markets as "pretty subdued" & said demand in the US during the qtr was merely "OK." However emerging markets were strong as was corp spending on INTC chips. Smith cautioned there was uncertainty heading into the Q4, but emphasized that spending in emerging markets & by corps remains strong. EPS was 65¢, above 52¢ last year. Excluding special items, EPS was 69¢ beating expectations of 62¢. Revenue was $14.2B, above $11.1B last year & beat forecats of $13.9B. For Q4, INTC predicts revenues of $14.2-$15.2B (analysts are expecting $14.2B). The stock liked the news & jumped 88¢.
Intel Shares Gain After Forecast Tops Estimates
Intel Corporation (INTC)
The Labor Dept reported the Consumer Price Index rose 0.3% in Sep, below a 0.4% rise in Aug. Excluding food & energy, core prices increased 0.1%, the smallest rise since Mar. Food prices rose 0.4%, pushed up by big increases in the dairy, cereals, & fruits & vegetables categories. Gas prices rose 2.9% (dairy prices have jumped 10.2% in the past year & gas prices have soared 33.3%), key reasons overall inflation has jumped 3.9% in the 12 months (the largest year-over-year increase in 3 years). Core prices have increased 2% for the same period. At the same time, inflation-adjusted average hourly earnings fell 0.1% in Sep. In the past year, average inflation-adjusted hourly earnings dropped 1.9%.
Consumer Prices in U.S. Rise at Slower Pace
AMR (parent of American Airlines) reported a larger-than-expected quarterly loss from high fuel costs & volatile foreign exchange rates. The loss was blamed on the soaring price of fuel & a Sep spike in the value of the dollar, which erodes overseas sales as well as the value of funds repatriated by US companies. The results were weaker than many forecasts because of the forex loss & the losses related to ineffective fuel hedging. AMR is the 3rd-largest US airline & is the only major carrier expected to post a Q3 loss. Analysts debate the chances of a bankruptcy filing as it works to cut its labor costs. The Q3 loss 48¢ compared with a profit 39¢ a year earlier. On that basis, expectations were for a loss of 41¢. Revenue was $6.4B, in line with expectations. AMR ended Q3 with $4.8B in cash & short-term investments, including a restricted balance of $474M. "While the third quarter was challenging for American Airlines, we are taking aggressive actions to improve the company's performance and strengthen its foundation for long-term success," CEO Gerard Arpey said. Industry experts now await updates on AMR's efforts to reach a labor contract with its pilots union. The stock dropped dime to $2.71.
AMR Corporation (AMR)
There was a report that the powers in Europe will be able to use Scotchs-Tape to patch up their debt problems. But few are buying into it. Greece is trying to clean up up its mess on the streets without much success. Then there are differences of how much of a haircut (loss) banks will have to accept on Greek debts. Earnings are on the drab side. Efforts to reduce the massive US debt seems years away. Dow has been stuck in a sideways trading range for 3 months (see below). Bulls can not break thru the 10.6K ceiling, a negative sign.
Dow Industrials (INDU)
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