Wednesday, April 27, 2016

Economic Journal - Wednesday, 4/27/2015

(As of 7:20am, PST)

The markets are wavering but not tumbling after Apple, the largest company by market value, reported disappointing results from their earnings report after the closing bell yesterday. In the early going, the Dow is down 35 points while the S&P500 is down 3.5 points. Apple reported fiscal second quarter revenue and earnings results below analyst’s already lowered expectations. Apple’s revenue fell 13% for the quarter, its first decline in 13 years. The market’s current response to Apple’s report indicates that investors may view Apple’s shortcomings as more company specific rather a sign of a broader market weakness. Other companies reporting yesterday were Chipotle which reported a smaller than expected quarterly loss and Twitter who reported disappointing quarterly revenue. Another potential market mover today is a policy announcement from the Federal Open Market committee this afternoon which may hint at a possible rate increase in June. Many experts believe that the Fed will leave the possibility of a rate hike in June on the table with an attempt to communicate this in a way that won’t cause a negative impact on the financial markets. Rising oil prices may be giving the market a boost today after a positive report that showed a draw down in inventories. In other economic news, the housing market continues its strong showing with pending home sales rising to a 10 month high in March. European stocks are trading higher while Asia closed lower.


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