Home Technology

The Bounce Fizzles Out Quickly on Amazon and Apple Earnings News – RealMoney

A “not as bad as expected” earnings report from Meta Platforms (FB) combined with very negative sentiment and oversold technical conditions helped trigger a countertrend bounce on Thursday. However, a mixed reaction to earnings from Amazon (AMZN) and Apple (AAPL) has already reversed the momentum.
The market was due for a bounce, but the conditions were not quite right for a sustained move as the reaction to major earnings news prevented fear of missing out from building and generating further upside momentum.
The report from Amazon helped to illustrate that there are still big economic hurdles, and the market has yet to fully discount what is happening with both inflation and economic growth.
The surprise miss in GDP on Thursday made the economic picture even more uncertain. On the one hand, a slowing economy may help to slow inflation, but on the other hand it is possible that we are moving into a period of stagflation with high inflation and low growth. The market has yet to figure it out but will be looking ahead to a Fed rate hike of a half-point next week.
Apple had a good report Thursday night but noted is it experiencing supply chain issues, especially with semiconductors, and the stock is giving back most of Thursday’s gains. If Apple can’t sustain an upside move on that report, then it is very likely the market will be unable to generate momentum.
At this point, I’m looking for a setup for another countertrend bounce. I’m not even going to think about the possibility of a market bottom until we have a good rally or two.
The Federal Open Market Committee (FOMC) interest rate decision next Wednesday afternoon is going to be an event with the potential to create a significant market move. It is very well-anticipated that it is going to hike, but it is a potential “buy the bad news” event that traders may make self-fulfilling.
We will see if there are some dip buyers ready to jump on this soft open, but I’ll be surprised if they are able to generate much sustained momentum today. The big event is the Fed news next week, and I don’t expect to see too much positioning today.
At the time of publication, Rev Shark had no positions in the stocks mentioned.
I would think that there could be a sharp rally at some point this week. There will be plenty of news.
If you own Boeing, why not unload it and swap into more tempting and promising situations?
It is no surprise that the charts of all the major indexes are a mess.
Xiaomi, India’s top-selling phone brand, has had US$725.8M seized by the Indian financial-crimes regulator in an investigation into allegedly illegal remittances.
For people willing to brave the waters, there are now quality names with distinguishing characteristics that look attractive.
Thank you, your email to has been sent successfully.
We’re sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.
Email Real Money’s Wall Street Pros for further analysis and insight
Already a Subscriber? Login
© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281
Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.
TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.
FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.
Follow Real Money’s Wall Street Pros to receive real-time investing alerts
Already a Subscriber? Login

source

Ads
Previous articleiPhone 14 Series Roundup: No Notches, 25W Fast Charging, 120Hz Display, New Model iPhone 14 Max – Trak.in
Next articleWhat Is The Difference Between A Star And A Planet? – Worldatlas.com