Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Apple and Seagate Tumble After Terrible Earnings

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Shares of Apple (NASDAQ: AAPL  ) and Seagate (NASDAQ: STX  ) plummeted in early trading on Tuesday, after both companies reported disappointing quarters Monday afternoon. In contrast, Dow Jones Industrial Average (DJINDICES: ^DJI  ) component Intel (NASDAQ: INTC  ) rallied modestly, and the index itself had added 56 points as of 11:30 a.m. EST.

Consumers feeling confident
Part of the reason for the Dow Jones' rally may have been data from the Conference Board showing U.S. consumers were feeling significantly better about the economy than analysts expected. The consumer confidence reading of 80.7 beat the 78.1 estimate.

Consumers might be feeling more positive because the economy is strengthening; they also may be more likely to spend. In either case, a strong confidence reading bodes well for the nation's economy, and by extension the stock market.

Apple whiffs on iPhone sales
Apple shares fell more than 7% early on Tuesday after the company reported earnings for the holiday quarter. While Apple sold 51 million iPhones -- a new record -- it came in short of analyst expectations. Even worse, Apple's management gave weak guidance for the coming quarter, suggesting that its iPhone business -- which still accounts for the vast majority of the company's revenue and profit -- may have peaked.

Apple's management again promised new products coming later this year, but didn't divulge details. With its iPhone business stalling, investors were understandably dumping shares.

Seagate hit by slowing PC market
Shares of hard drive maker Seagate tumbled 11% after the company's earnings came in short of expectations.

Traditional PCs have been in decline for several quarters, weighing on demand for Seagate's hard drives from its primary market. But bulls had hoped that demand for Seagate's products by cloud storage providers would more than offset the weakness in the PC space. That didn't happen; cloud-related demand actually fell.

Intel moves higher
Intel had gained 0.80% by late morning, which was slightly better than the overall market, but there wasn't much news to account for the move.

It's possible that some investors may have projecting Apple's earnings onto Intel -- Apple's Mac sports Intel-made processors, and though Apple's iPhone had a disappointing quarter, Mac sales actually rose 20% from the prior year.

January is almost over -- get our top stock pick for 2014!
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (5) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 28, 2014, at 11:54 AM, jdmeck wrote:

    Sam, Only an fool like you could call Apple earnings terrible.

  • Report this Comment On January 28, 2014, at 11:54 AM, bugnuts wrote:

    Apple's $0.43 EPS beat above analyst estimates was "terrible"?

    Really? What's terrible is Sam's consistent aversion to facts.

  • Report this Comment On January 28, 2014, at 12:05 PM, SyDVooh wrote:

    Analysts set unrealistic goals for Apple sales, and even when it sets a new record for iPhone sales, it's still not good enough? I'm glad that I pay no attention to analysts.

  • Report this Comment On January 28, 2014, at 12:33 PM, cobwebstocks wrote:

    iPhone business stalling? Really? They set a record !!!!!!

  • Report this Comment On January 28, 2014, at 5:20 PM, deasystems wrote:

    Same, you and your article are "terrible."

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2812776, ~/Articles/ArticleHandler.aspx, 8/31/2015 2:56:50 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sam Mattera

Sam has a love of all things finance. He writes about tech stocks and consumer goods.

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:55 PM
^DJI $16643.01 Down -11.76 -0.07%
AAPL $113.29 Up +0.37 +0.33%
Apple CAPS Rating: ****
INTC $28.42 Up +0.70 +2.53%
Intel CAPS Rating: ****
STX $50.68 Up +0.64 +1.28%
Seagate Technology CAPS Rating: ****