AAPL stock surges on big volume as buyers rushed into the stock. In the meantime, the NASDAQ and the rest of the stock market were in trouble for much of the day as sellers took ahold of the market for much of the day. The late day surge in AAPL stock helped lift the NASDAQ from its lows and avoid closing below its 50 day moving average. Small caps took the biggest hit of the day closing down more than 1.5%. Volume did come in lower on the day, but remember Friday was option expiry inflating Friday’s volue levels. A fair comparison? We still remain in a shaky environment here and we’ll need to see come positive action here as the market flirts with key moving averages.
A bit of positive economic news came from home builders as the NAHB Housing Market Index was released at 15, better than expected. The bad news of course is over supply as more than 2 million homes remain unoccupied. Until supply can be met by demand Case-Shiller sees a drop of 20-25% in home prices are likely. A bet on the homebuilding sector is a dead bet for now and until supply is met by demand. Look for this trend to continue.
IBM stock reporting earnings in the after-hours session here are the headlines:
IBM 2Q OPER EPS $3.09, EST. $3.02
IBM 2Q REV. $26.67B, EST. $25.35B
At 4:14pm EST IBM stock was trading down .71%. It’ll be a key indication of what we can expect when normal trading resumes tomorrow. After-hours trading tends to be erratic. For now, the market is not chearing the news out of IBM so far. IBM will have a big effect on the Dow Jones Industrial Average, it is the only reason to mention this stock it is by far not a leading stock despite its size.
In other notable after-hours news CSCO stock put out this headline:
CISCO TO CUT 6,500 JOBS, TAKE PRETAX CHARGE UP TO $1.3B
This is never a good headline to read during this terrible job market.
A few market leaders held up well today, but we need a whole host of new stocks looking to breakout not just those who are holding up. At this juncture we have the NASDAQ flirting with its 50 day moving average and we could go either way. A show of support would certainly signal another run to the upside. For now, stay cautious and wait for the market to confirm another upside move.
Cut your losses short.
