By Markus Heikoetter
￼Stocks were lower for the 3rd consecutive trading session with losses in Apple (AAPL) weighing heavy on the markets.
Yesterday Apple closed below its 200-day moving average for the first time since February 2014. Today AAPL lost another 3.21% with the 2nd highest volume day of the year. AAPL ended the day at $114.64.
The S&P lost 5 points today. After closing below its 50-day moving average yesterday, the S&P pushed lower and tested its 100-day moving average today. The S&P ended 0.22% lower with a close of 2093.32.
The DOW dropped 48 points today. With a 0.27% loss the DOW closed at 17550.69.
The NASDAQ had the smallest decline out of the major indices once again. With a 0.19% decline the NASDAQ finished 10 points lower at 5105.55.
Right now it looks like AAPL is bringing the markets down. When the stock with the biggest U.S. market cap drops 13.8% in 2 weeks, it’s hard not to notice. Especially since AAPL is a stock in all 3 major indices!
You can blame AAPL, you can blame China, you can blame Greece…but don’t blame earnings for the recent drop! Earnings have actually been better than expected. In fact, 74% of S&P companies that have reported earnings have beat profit estimates. And half have exceeded sales projections. According to Bloomberg “analysts now forecast a 2.8% drop in 2nd quarter earnings” compared to the 6.4% drop that was expected.
In other news Factory Orders increased 1.8% today, coming out inline with expectations.
Looking at tomorrow’s economic calendar we have ADP Non-Farm Employment Change at 8:15am, Trade Balance at 8:30am ET, ISM Non-Manufacturing PMI at 9:45am ET followed by Crude Oil Inventories at 10:30am ET.