After several dismal trading sessions, investors were able to get their minds off of frustrating debt woes and celebrate a strong earnings lineup from a number of American bellwethers. Now that earnings season is underway, it will likely be the dominant market mover, while governments around the world, including our own, try to figure out a way to deal with their respective debt crises. In the U.S., our situation finally took a turn for the better during Tuesday trading, as President Obama embraced a bipartisan proposal to reign in the deficit and help avoid an early August default. Thanks to these easing tensions, the focus will likely continue to be on the slew of earnings reports that will arise, as some of the most popular blue chip firms get ready to announce their most recent fiscal quarter results [see also ETF Insider: A Most Unexpected Rally].
Yesterday, after the bell, technology giant Apple
Analyst estimated the company would bring in EPS of $5.80 per share with revenues just under $25 billion. As is typical Apple fashion, the company blew estimates out of the water, hauling in an astonishing EPS of $7.79 and revenues of $28.5 billion. This big jump was largely due to Apple's iPad sales which were up over 180% from a year ago, and the company also crushed its iPhone sales estimates as well. Though it did have lower than expected sales of Macs, many had already forecast this number to miss the mark as Apple readies its new Mac lineup. AAPL promptly jumped 7% in after-hours trading, though the stock trended below the $400 level shortly thereafter [see also AAPL Weighting in QQQ to Be Slashed].
In light of yesterday's after-hours earnings announcement, today's ETF to watch will be the QQQ Trust
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Disclosure: Photo courtesy of Matt Yohe. No positions at time of writing.
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