Another Day, Another Beatdown for Apple
Today's financial recap and tomorrow's financial outlook.
We saw significant outperformance in the small-cap Russell 2000 (INDEXRUSSELL:RUT). Chinese stocks also rallied following a better-than-expected PMI number.
However, the slow-motion train wreck that is Apple (NASDAQ:AAPL) dragged down the tech-heavy Nasdaq (INDEXNASDAQ:.IXIC) from two separate angles. First, it has a huge weighting in the index, and secondly, rumors circulated that the iPhone-maker was cutting component orders, putting a dent in semiconductor plays like Qualcomm (NASDAQ:QCOM) and ARM Holdings (NASDAQ:ARMH).
Additionally, traders' anxieties over how the fiscal cliff plays out are likely weighing on the market, especially since chatter about a 'sell the news' reaction, as happened following QE3, is starting to spread.
In economics, the Consumer Price Index rise 1.8%, coming in below the 1.9% consensus. Excluding volatile food and energy prices, the Index rose 1.9%, again below consensus.
Over on the bond front, we saw significant strength in US Treasuries, which bounced off the closely-watched 200 day moving average.
Monday's Financial Outlook
On Monday, we will see the Empire Manufacturing survery at 8:30 a.m., with Long-Term TIC Flows report following at 9:00 a.m. On the international front, we'll see the Eurozone Trade Balance and Canadian Existing Home Sales reports.
There are no major earnings reports scheduled.
We continue to recommend that investors watch for fiscal cliff news, or at least that which contains actual news rather than the usual reports of no progress.
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