The markets were mostly higher today ahead of Apple's earnings and the Federal Reserve's rate decision tomorrow afternoon. Due to that unknown, the S&P 500 was higher by only 2 in a relatively flat day of trade. The Dow 30 closed higher by 38 but the Nasdaq closed lower by 54 thanks in part to the selloff following Alphabet's earnings.
Sector News
Semiconductors (SMH ) have recovered slightly after a quick pullback last week. Last week was busy for earnings in the space, which caused an uptick in volatility and a downtick in prices, coming off 52-week highs. Intel (INTC ) has been a drag on the space since reporting their earnings which, at this point, have caused the stock to lose over 10%. Though the Semis have seen some weakness in the short-term, the trend is still clear to the upside with total gains still over 30% for the year.
Consumer Staples (XLP ) has hit new highs again this week as the sector continues to enjoy a clear and strong uptrend. For the year the sector is higher by about 14% as investors note the earnings from many names. The uptick reflects higher prices for goods, which are still generally being absorbed by consumers. Technical traders note the next overhead resistance about 3% above current prices.
Communication Services (XLC ) have been hit hard this week mostly thanks to Alphabet (GOOGL ), which missed on earnings, pushing shares to their lowest point in over a month. Shares of both classes of Alphabet make up a whopping 24% of the sector, so it is easy to see why the XLC has pulled back off highs.
Transports (IYT ) have cooled off this week following their impressive runup over the last few weeks on earnings. The rails reported earnings that were mostly better than expected and have been a supporter of the space, but this week with the rails cooling off and a strong selloff from UPS (UPS ), the transports have pulled back towards some technical price support as well as the 200-day moving average. Market technicians will also note the golden cross.
Stock News
Alphabet (GOOGL ) shares were sharply lower today as the company reported earnings that were better than expected but a miss on revenues. The miss came thanks to a dip in ad revenue, which was expected to grow by 24% but showed only 15%. Though the decline stopped at the 50-day moving average today, it still erased the entire month's worth of gains all in one day.
General Electric (GE ) shares were sharply higher as well thanks to a beat on earnings. The company beat by 5 cents on revenue as expected. The CEO, who has had his hands full trying to streamline the company, also confirmed their 2019 projections, which were in line with Wall Street's expectations.
Western Digital (WDC ) shares were lower on the day thanks to a wide miss on earnings. The company earned 17 cents, which was well below the 46 cents expected, and revenue was a tough lower. Shares broke back below the 50-day moving average today where they closed.
McDonalds (MCD ) reported earnings that came in better than expected thanks to a boost in same-store sales. The company earned 3 cents more than expected on revenue that also beat. Shares remain near all time highs, bumping up against the $200 price level.
