The KUIK Morning Market Report for Wednesday, January 27:
Markets are down.
Index Direction Change Units Time
Dow Down (155) points 16,013 7:15 AM
S&P500 Down -0.8% percent 1,888
Nasdaq Composite Down -1.4% percent 4,506
30 Year Treasury Up 2 Basis Points 2.82 Annual Yield
Most of the Dow’s drop is due to Apple and Boeing. Apple is down almost 5% to $95 a share in early trading after forecasting a sales drop for the first time in more than a decade, adding to evidence that the market for smartphones is becoming saturated and that expansion in China is no longer enough to maintain the company’s growth. Revenue in the first quarter will be $50 to $53 billion, Apple said yesteerday, the first quarterly drop since 2003 and below analysts’ estimates for $55.5 billion. That follows a holiday quarter in which overall sales and iPhone shipments fell short of projections.
Boeing yesterday also gave 2016 guidance that fell short of Wall Street expectations, though the world’s largest aerospace company posted fourth-quarter profit that topped analysts’ views. Boeing said it expects to post adjusted earnings between $8.15 and $8.35 in 2016, while analysts polled by Thomson Reuters forecast $9.43 a share in earnings. Boeing shares are off 9.6% to $115.67 a share.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
http://www.bloomberg.com/news/articles/2016-01-26/apple-forecasts-first-sales-drop-since-2003-on-iphone-slowdown
http://www.marketwatch.com/story/boeing-shares-clobbered-by-weak-outlook-2016-01-27
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