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DOW 12,270.17 +298.98 (+2.50%) S&P 500 1,338.60 +28.10 (+2.14%)
NASDQ 2,316.41 +24.14 (+1.05%) 10 year Bond 3.426% -0.058
Stock opened today sharply lower continuing the sell-off from yesterday. Apple (AAPL) $139.07 -16.57 (-10.65%) didn’t help. The company had a good earnings report beating estimates by $0.14. But the street had expected larger iPhone and iPod sales and traders were not happy with their forward guidance. I believe that the stock got unfairly punished. Just a few weeks ago shares of Apple traded at near $200.00 per share.
Also contributing to the continued sell off was the ECB President, who made it clear that their main focus was inflation. The street interpreted this as an indication that they would not follow the Feds lead and lower interest rates.
Motorola (MOT) $10.01 -2.31 (-18.75%) also toped analyst estimates, but got killed when they gave an outlook below what the street was looking for.
SLM Corp. (SLM) $18.69 -0.33 (-1.74%) or Sallie Mae, posted earning today well below estimates. The company posted a loss of -$0.36 per share. Wall Street was looking for $0.55 per share. Additionally, the SEC is now looking into stock sales by directors and executives. The shares are now down more than 71% from their 52 week high.
Somewhat ignored today was the fact that Pfizer (PFE) $22.86 +0.63 (+2.83%) posted better than expected earnings and gave guidance better than the street had expected.
The market though managed to fight its way into positive territory by the end of the day led by the financial sector. Sparking the rally was a report that
The market has feared that bond insurers, like MBIA (MBI) $16.61 +4.08 (+32.56%) and AMBAC (ABK) $13.70 +5.73 (+71.98%), might get downgraded at Moody's or Standard & Poor's. This has been a major factor behind recent decline in the stock market. Since a downgrade or possible bankruptcy of these companies would mean more write-downs in the financial sector.
The rally today was a good thing for the market and we will have to see if it last or if it was just a dead cat bounce. Only time will tell.
Companies reporting tomorrow are: AT&T (T), Baxter (BAX), Ford Motor (F), Kimberly-Clark (KMB), Lockheed Martin (LMT), Northrop Grumman (NOC), and Potash (POT),
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