Apple’s earnings of $1.33 per share far exceeded expectations of $1.09 which has raised optimism and has futures pointing toward a higher open.
[B]What To Watch For In The US Session
• Apple’s Earnings Could Bolster Sentiment
• Housing Data Could Weigh On Outlook
• Initial Jobless Claims On Tap
[/B][U][B]Apple’s Positive Earnings Could Offset Banking Concerns And Lift Stocks[/B][/U]
Apple’s earnings of $1.33 per share far exceeded expectations of $1.09 which has raised optimism and has futures pointing toward a higher open. The company’s strong Mac sales have fueled optimism that the American consumer isn’t completely dead and as the economy starts to improve we could see a sharp pick up in domestic demand. Since Apple’s products remain at the higher level of the price range for computers, the fact that consumers aren’t substituting it for a cheaper brand is an encouraging sign. However, the tech giant may be anomaly due to the strength of its brand which may not be an accurate gauge for the broader economy. Bank shares may continue losses from the end of trading yesterday as Morgan Stanley’s dour earnings began to weigh on the sector. Initial jobless claims and existing home sales data threaten to derail bullish sentiment as both are expected to weaken following positive gains in their prior releases. New claims are expected to have risen to 639,000 from 610,000 while demand for existing homes is forecasted to fall by 1.5%.
[B]Dow Jones 7886.57[/B]
The DJIA futures are trading higher as the blue chip index could see energy names trade higher as crude and commodity prices find support. More signs that the global economy is stabilizing could also add to bullish sentiment, as Europe saw better than expected fundamental data cross the wires overnight.
[B]NASDAQ 1646.12[/B]
The Nasdaq may se the biggest move higher led by Apple which could se its shares jump on its positive earnings. Microsoft reports after the bell and that will also factor into sentiment today.
[B]S&P 500 843.55[/B]
The S&P 500 futures are also pointing higher on the broader bullish sentiment, but if banks continue to slide and the U.S. fundamental data disappoints, we could see a reverse in sentiment.
[U][B]Current Snap Shot[/B][/U]
