Tuesday was more of the same of late with a slew of brand name companies missing on earnings and/or revenue and/or guidance, and the market reacting negatively. The S&P 500 fell 1.44% and NASDAQ 0.88%. While the NASDAQ has been leading the charge lower for the past month, this has changed during the current week as many names - especially in the tech sector - are extremely oversold and near wash out levels in the near term, so prone to bounces. Hence the Dow Jones Industrial Average and S&P 500 have actually been the worse performers of late as they "catch up" to the poor action in the NASDAQ and small cap dominated Russell 2000.
Looking at the S&P 500, after bouncing back to the bottom of the ascending channel in the furious last hour rally Monday it was pole axed today with a big gap down. After bouncing off April 2012 highs yesterday the index opened below that level and never truly attempted to get back over. The index is now firmly below the 50 day moving average. The next obvious support levels are in the 1395 area which was a spot the S&P 500 bounced off of multiple times in August and September.
The NASDAQ had serious losses but not of the magnitude of the S&P 500. It is already within the vicinity of its 200 day moving average, from which it bounced today.
Stocks are once again reaching this same level of oversold that has seen bounces the past few weeks but obviously those bounces haven't lasted long.
Various companies reporting this morning had issues - examples would be chemical/ag company Dupont (DD) [missed both earnings and revenue, and reduced guidance] and congolomerate 3M (MMM) [revenue was light / reduced guidance].
On the bright side was appliance maker Whirlpool (WHR) which is benefitting from some decent bounce in housing in the U.S. along with still ok growth in emerging markets; they actually raised guidance and the stock was rewarded.
To finish off it was another poor day for oil, which seems to be in a bit of a freefall.
While it didn't help the stock, the big buzz of the day was Apple's release of the iPad mini ($329) and iPad4 ($499).
- The iPad mini will be 7.2 millimeters thick — the approximate girth of a Number 2 pencil — and will weigh 0.68 pounds. The miniature version will have the same ten hours of battery life as the larger sized predecessor, but will be what Apple calls the smallest battery it's ever made.