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Today's Stock Action: Bears Clobber Apple

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Today's financial recap and tomorrow's financial outlook.

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Apple's (NASDAQ:AAPL) weak earnings report from yesterday afternoon drove the market leader down sharply, and significantly dragged down tech stocks. The NDX-100 Index (INDEXNASDAQ:NDX) finished the day 1.40% lower while the S&P 500 (INDEXSP:.INX) was flat. Other company reports out this morning showed numerous earnings beats, but nearly every company missed on their revenues, which is not a positive sign longer-term.

From a sentiment perspective, the American Association of Individual Investors survey showed that equity investors are the most bullish they've been since January 2011, typically a sign that a correction is on the horizon. Additionally, the Bloomberg Consumer Comfort Index showed deterioration for a third straight week as consumers reacted negatively to the tax hikes associated with the fiscal budget deal around the new year.

US economic data continued to show improvement via weekly jobless claims. The claims fell to a seasonally adjusted weekly rate of 330,000, down from last week's 335,000 and still considerably ahead of the 355,000 consensus. This was the lowest claims figure since 2008 and matched the monthly rate during the growth period of 2004 through 2007.

After the close, Microsoft (NASDAQ:MSFT) reported better-than-expected fiscal second-quarter earnings, but slightly light revenues.

Tomorrow's Financial Outlook

Tomorrow morning, the US will release new home sales for the month of December. Last week, new housing starts and building permits showed an enormous increase on a month-to-month basis and new home sales should be no different. Economists are expecting a rise to a seasonally adjusted annual rate of 385,000, up from 377,000 last month.

Globally, the UK will be reporting GDP figures and the IFO Institute will report economic sentiment in Germany. The German sentiment indicator is expected to show a nominal gain to 107.3 in January from 107.1 in December. The UK's GDP is expected to rise to an annual rate of 0.2% from last quarter's 0.0%.

In earnings, Honeywell (NYSE:HON), Kimberly-Clark (NYSE:KMB), Procter & Gamble (NYSE:PG), and Halliburton (NYSE:HAL) will report.

Twitter: @Minyanville

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No positions in stocks mentioned.

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