Tuesday, October 20, 2009
Optimism Lifts Markets
The Dow recaptured the 10,000 level Monday on what appeared to be nothing else than earnings optimism. The Dow gained 96.28 points to end on 10,092.19. The SPX added 10.23 points to finish at 1,097.91. We have no play on.
On the economic front the housing sector got bad news from the housing market index. This measure of general housing market conditions fell a point to 18 in October. This is disappointing due to the fact economists thought maybe the pending end to the $8,000 first time buyer credit would spur interest. Traders will get more data on housing later this week when housing starts and existing home sales data are released.
Apple (APPL) was the big announcement on Monday as it announced after the bell. Despite high expectations, the iPhone maker blew past estimates and the stock has now moved sharply higher in afterhours trading to a new all time high. AAPL beat earnings estimates by 40-cents a share with revenues up 25 percent to $9.87 billion, well above estimates for sales of $9.2 billion. Apple sold more iPhones and Mac computers than in any other quarter in history. AAPL shares are trading near $202 in afterhours trading, a gain of more than six percent.
Toady is also a busy day as we will get reports form Caterpillar (CAT), Coca-Cola (KO) and Yahoo (YHOO), to name a few, on Tuesday. Economic data on housing starts and the producer price index could also impact stock prices today.
Once we have seen how today pans out we will look at potential plays.
Until next time.
On the economic front the housing sector got bad news from the housing market index. This measure of general housing market conditions fell a point to 18 in October. This is disappointing due to the fact economists thought maybe the pending end to the $8,000 first time buyer credit would spur interest. Traders will get more data on housing later this week when housing starts and existing home sales data are released.
Apple (APPL) was the big announcement on Monday as it announced after the bell. Despite high expectations, the iPhone maker blew past estimates and the stock has now moved sharply higher in afterhours trading to a new all time high. AAPL beat earnings estimates by 40-cents a share with revenues up 25 percent to $9.87 billion, well above estimates for sales of $9.2 billion. Apple sold more iPhones and Mac computers than in any other quarter in history. AAPL shares are trading near $202 in afterhours trading, a gain of more than six percent.
Toady is also a busy day as we will get reports form Caterpillar (CAT), Coca-Cola (KO) and Yahoo (YHOO), to name a few, on Tuesday. Economic data on housing starts and the producer price index could also impact stock prices today.
Once we have seen how today pans out we will look at potential plays.
Until next time.
# posted by Paul @ 3:10 AM 
