Another quiet session for the market as Wednesday was essentially the exact opposite of Tuesday with the NASDAQ leading the indexes down rather than up. The S&P 500 fell 0.08% and the NASDAQ 0.56% as Apple took a significant hit. As a major weight in the NASDAQ index, when Apple moves strongly one way or the other it affects the entire index. In economic news July factory orders rose in-line with expectations, while the Fed’s Beige Book found modest to moderate economic expansion. The European Central Bank is scheduled to hold its monthly policy meeting on Thursday and may announce the launch of a bond-buying program which could drive U.S. futures premarket.
Here are the longer term charts for the indexes as we show each Wednesday. The NASDAQ actually had a bearish “outside reversal” day – that is a day where the index goes higher than the previous day’s high, but finishes lower than the previous day’s low. In normal settings this is often a short term bearish indicator but it has usually been a false alarm during the era of quantitative easing.
Apple (AAPL) was hit by Samsung news. Samsung revealed two large-screen phones and a virtual reality device on Wednesday at simultaneous events in New York, Beijing and Berlin, ahead of Apple’s expected unveiling of the iPhone 6 next week.
Toll Brothers (TOL), the largest U.S. luxury homebuilder, said its quarterly income more than doubled but traders still sold off shares. Homebuilders have certainly not been an area of favor by the market this past year.
Delta Airlines (DAL) trimmed its operating margin forecast and said its international passenger traffic fell slightly in August.
GoPro (GPRO) continues to go vertical!