Traders Sell the Big Apple Dip
Today's financial recap and tomorrow's financial outlook.
Apple shares were trading around the $131 level at 1:00 p.m. ET when it began a descent to $128.15 by the last 20 minutes of trading. The stock creeped higher into the close to finish at $128.79, down 2.6%.
However, the dip in Apple struck a nerve and all major sectors finished off their highs.
The S&P closed at 2113.83, down 0.08%. This was the eighth straight day that the index moved less than 1% on the day.
January New Home sales were 481,000, slightly beating the 470,000 consensus. MBA Mortgage applications for the week ending February 20 fell 3.5%, an improvement from the prior week's 13.2% decrease.
Hewlett-Packard (HPQ) fell 9.9% to $34.67 today after missing analysts' first-quarter revenue expectations and issuing a lackluster full-year outlook. The company said the negative impact from foreign exchange will be larger than previously anticipated.
Biotech firm Pharmacyclics (PCYC) rose 16.9% to $220.22 after rumors of a takeover by Johnson & Johnson (JNJ) or Novartis (NVS) surfaced.
That news set off a rally in the group, and the SPDR S&P Biotech ETF (XBI) rallied 2.6%, making biotech the best performing sector of the day.
Crude oil prices took off intraday despite a bigger-than-expected build in supplies. Saudi Arabia's oil minister Ali Al-Naimi made bullish comments on demand, sending the price of crude up, helping energy stocks rally.
Fed Chair Janet Yellen testified in front of the House Financial Services Committee today, but offered little in the way of surprise.
Tomorrow's Financial Outlook
We could see some interesting action Thursday as we have some big economic numbers hitting tomorrow morning.
At 8:30 a.m. ET, CPI, Durable Goods, and Jobless Claims will hit and are likely to drive volatility. Traders will be closely watching the CPI number closely to see any signs of an inflation build. Natural gas inventories will be released at 10:30, followed by the Kansas City Fed Manufacturing Index at 11:00.
On the global front, German consumer confidence and employment, British GDP, and Canadian CPI wlll also be reported in the morning.
We'll also see earnings from retailers Kohl's (KSS), Sears Holdings (SHLD) and Gap (GPS).
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