Wall St Summary: AAPL, DELL, C
The telecommunications sector slid 0.6% and AT&T NYSE:T 33.14, -0.28, Sprint Nextel NYSE:S 5.48, -0.06, and Verizon NYSE:VZ 41.40, -0.30 all lost between 0.7% and 1.1%.
Among technology stocks, Apple NASDAQ:AAPL 527.68, +2.06)registered a gain of 0.4%.
A handful of notable technology companies have reported earnings since yesterday’s close.
Dell NASDAQ:DELL 8.86, -0.70)settled lower by 7.3% after missing on earnings and revenue. During the Q-3, the computer manufacturer saw its top line decline 10.7% Y-Y, to $13.72-B. In addition, the company issued downside fourth quarter revenue guidance and reaffirmed its Y 2013 earnings expectations
Applied Materials NASDAQ:AMAT 10.15, -0.15 reported strong results, but issued cautious guidance. The semiconductor manufacturer earned 0.06 on $1.65-B in revenue, which beat the consensus estimates. Forward guidance was a point of concern as the company expects Q-1 earnings and revenue below consensus.
Lastly, Autodesk NASDAQ:ADSK 31.48, +0.98 rose by 3.2% after reporting mixed earnings. The software provider’s earnings exceeded estimates by 0.04, while its revenue of $548-M fell short of estimates. Similar to Applied Materials, Autodesk is cautious about its upcoming quarter as it expects earnings and revenue to miss consensus estimates.
JPMorgan Chase NYSE:JPM 39.53, +0.14) added 0.4% after reaching a settlement with the Securities and Exchange Commission regarding Bear Stearns and JPMorgan residential mortgage-backed securities. As part of the settlement, JPMorgan will pay approximately $297-M in penalties. Credit Suisse NYSE:CS 21.94, -0.43 was also named in the settlement and will pay approximately $120-M in fines. Looking at other majors, Citigroup NYSE:C 34.98, -0.23) slid 0.7% while Wells Fargo NYSE:WFC 31.94, +0.37 outperformed with a gain of 1.2%.
The Dow Jones Transportation Average under performed the industrial average and settled lower by 0.5%. Out of the 5 airlines which are part of the transportation average, 4 saw notable losses.
Delta Air Lines NYSE:DAL 9.33, -0.16) fell 1.7%, and JetBlue Airways NASDAQ:JBLU 4.96, -0.07 lost 1.4%. Meanwhile, Southwest Airlines NYSE:LUV 8.93, +0.09 outperformed and added 1.0%. As 17 out of 20 transportation stocks settled lower, two listings connected to the trucking industry saw strength. JB Hunt NASDAQ:JBHT 59.32, +0.22 and Ryder System NYSE:R 44.22, +0.45 added 0.4% and 1.0%, respectively.
Casino stocks were broadly stronger after Penn National Gaming NASDAQ:PENN 48.23, +10.62 announced plans to split its real estate and gaming assets into two separate companies. Under the new structure, a newly-established PropCo will be the 1st real investment trust focused solely on gaming. Penn National surged 28.2% while peers Ameristar Casinos NASDAQ:ASCA 19.52, +2.67), Pinnacle Entertainment NYSE:PNK 12.65, +0.84), and Las Vegas Sands NYSE:LVS 42.27, +1.71) all gained between 4.2% and 15.9%.
In economic news, the September net long-term TIC flows report indicated a $3.3-B inflow of foreign capital into UA denominated assets. This follows the prior month’s $90.0-B inflow.
Industrial production decreased during October by 0.4%, which was worse than the 0.1% increase that had been expected by the Briefing.com consensus. The reading follows the revised 0.2% increase recorded during the prior month.
US Major Market Indexes Technical Analysis
|16 Nov 2012||QQQ||62.3||Bearish (-0.46)||62.12||62.63|
|16 Nov 2012||DIA||125.6||Bearish (-0.38)||125.21||125.73|
|16 Nov 2012||SPY||136.37||Bearish (-0.34)||135.49||137.32|
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Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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