Market Gives Mixed Signals: Blame Apple

The markets sent mixed signals today, with the Dow posting decent gains while the S&P 500 and Nasdaq both dropped. The big reason? Apple, which factors heavily into the latter two indices but doesn't affect the Dow directly, dropped heavily after it missed on earnings in the second quarter. The company also lowered guidance below expectations for next quarter, but with big impending product releases and growth opportunities in China, the company looks OK. Netflix got hammered, however, meeting domestic subscriber targets but providing a cautious outlook for subscriber growth going forward. RadioShack looks even worse, as a disappointing earnings report sent shares plummeting, with real concern for its long-term viability. On the bright side, Caterpillar posted an impressive quarter and appears capable of weathering the macroeconomic headwinds facing it in the near term.

If you're a tech investor, the amount of Apple stock in your portfolio has been a key factor in whether you've been stomping the market in recent years. However, with the company preparing its most important phone launch in history with the iPhone 5 and looking at a game-changing television, the stakes have never been higher for Apple. If you're looking for how to play Apple in the coming months, the Motley Fool has created a brand new report listing not only the opportunities facing Apple, but also what to look for to know when to sell. The report not only comes with a write-up from one of our top analysts, but includes continuing updates whenever news strikes the company. Click here to get started today!

Brenton Flynn owns shares of Netflix. The Motley Fool owns shares of Apple, Netflix, and RadioShack. Motley Fool newsletter services recommend Apple and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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