(As of 7:20 am PST)
Stocks opened the day higher but are slipping off their
highs as investors considered earnings and economic data ahead of a two day Fed
meeting. Apple was the buzz in
yesterday’s after-market trading as the tech giant reported mixed
earnings. The iPhone maker reported its
third consecutive quarter of earnings declines despite revenues coming in
higher than the street expected on several new product launches. Apple’s guidance on gross margin for the
December quarter caused investors the most concern. All in all, it was a rather unexciting report
and reaction. Shares are slightly lower
this morning. Today investors are
navigating several economic
reports. Retail sales fell in September
for the first time in 6 months with auto sales leading the decline. US home prices also lost some momentum, with
the average home price rising 1.3% in August according to the S&P/Case-Shiller
Index. A report on wholesale prices
showed inflation remains in check as core wholesale prices rose a scant 0.1%.
The last report to cross the wires showed consumer sentiment plunging in
October to the lowest level in 6 months.
There’s a cautious tone in the
market today as the Fed kicks off a two day policy meeting. The market expects the Fed to remain loose in
its monetary policy as the recent government shutdown and weak economic data
have put the brakes on the central bank’s plan to taper its asset purchase
program.
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