The market is lower today after key earnings announcements were not quite enough to keep the recent massive gains in the markets. Apple Inc. (NASDAQ:AAPL) reported stellar earnings, blasting past Wall Street estimates. However, regardless of what they made last quarter, now AAPL investors must face uncertainty with future earnings from a company without Steve Jobs. This is bringing some sellers out on the stock. The stock is only trading up +1.70 (+0.50%) at $342.35.
International Business Machines Corp. (NYSE:IBM) was the one glimmering star in an otherwise just mediocre earnings picture. The stock is trading at $155.22, +4.57 (+3.03%). IBM blasted earnings expectations out of the water and the stock is being rewarded. This is one of the only reasons why the Dow Jones Industrial Average is flat on the day while the NASDAQ and S&P 500 are both nicely lower. IBM is one of the 30 Dow stocks and carries major weight.
This morning, before the market opened, Goldman Sachs Group, Inc. (NYSE:GS) reported earnings that were very disappointing to Wall Street. Usually Goldman Sachs blows away estimates by a huge amount. Today, they barely met estimates. The stock is selling nicely, trading at $169.74, -4.94 (-2.83%). This shocked Wall Street today because Goldman is looked at as being the elite company, a company that will always outperform.
The keys to the market today are simple. Right now, we have the SPDR S&P 500 ETF (NYSE:SPY) trading at $128.69, -0.83 (-0.64%). Volume is slightly heavier today which tells us the downside is more likely. When volume is light, the markets usually float higher like a soft cloud in the sky. In addition, the market needs a new major catalyst to push higher. Right now, mixed earnings will not do it. The last major factor for weakness today is options expiration. Every options expiration week, the institutional big money slams the market one way or the other to whip out the weak hands and take easy money from the amateurs. With the recent massive gains, many amateurs were holding calls. The institutions needs to negate those winning hands but pushing the market down a little.
Gareth Soloway
InTheMoneyStocks
