STTG Market Recap July 22, 2014

It has been choppy action of late after the surge we had early in July during the holiday week.  Stocks exited that week very overbought short term and since then we had a needed minor pullback followed by some geopolitical issues.  All in all things are doing well in the large cap area while small caps have been a bit more troubled.   So for the indexes we focus on each day things look ok.  Today the S&P 500 gained 0.50% and NASDAQ 0.71%.   In economic news, the consumer price index rose 0.3 percent last month after a 0.4 percent rise in May. The core measure, which does not take food and energy costs into account, increased 0.1 percent.

The NASDAQ had been in a short term downtrend from the early part of the month, which it broke over today – if this holds it should bode well.

spx

nasdaq

Here is the small cap oriented Russell 2000 which certainly has been a laggard much of the year.

rut

After a mild reaction to its earnings yesterday, Netflix (NFLX) fell quite hard today as the company’s plans to expand in Europe were seen as eroding profits.

nflx

After the bell Apple (AAPL) had a muted reaction – down around half a percent – to its earnings report.

The company reported quarterly earnings of $1.28 a share on revenue of $37.4 billion, versus expectations of EPS of $1.23 on roughly $37.98 billion in sales.  Apple sold 35.2 million iPhones and 4.4 million Macs, up 13 percent and 18 percent respectively.   IPad sales fell for the second straight quarter, to 13.3 million.

For the fiscal fourth quarter, Apple is projecting revenues of between $37 billion and $40 billion, gross margins of between 37 and 38 percent, and operating expenses of between $4.75 billion and $4.85 billion. The company also announced a 47-cent per common-stock share dividend. The company’s cash hoard rose to $164.5 billion.

aapl

Coca-Cola (KO) dropped after the soft drinks company’s sales missed estimates. It did finish well off its lows but for a slow growth company it has had a huge move since March.

ko

Yesterday Bill Ackman (hedge fund manager) said he would show Herbalife (HLF) was a fraud today – well that didn’t work out so well!  The volume yesterday and today has been amazing.

hlf

 

Fun fact!

IPhone sales totaled $91.3 billion last year, more than the revenue of Google Inc., Facebook Inc., Twitter Inc., LinkedIn Corp. and Tesla Motors Inc. combined.

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