US Stocks traded sharply higher yesterday led higher by big earnings driven gains and oil prices trading higher. Today investors are digesting more earnings reports and looking towards 2pm when the Fed decision about interest rates is announced.
Yesterday after the bell Apple reported earnings that beat consensus estimates but missed on revenue estimates. IPhone sales grew at the slowest pace since the iPhone was introduced in 2007. The company forecast that revenue in the current quarter would decline at the steepest rate in 15 years signaling an end to the company’s hyper growth of the past. Shares of Apple are trading lower on this news.
Boeing reported earnings this morning that easily beat analysts’ expectations, but the company said that they will produce far fewer planes in 2016 than originally expected which sent the stock down 6%.
AT&T reported earnings that were softer than expected. The company added fewer wireless customers than a year ago. AT&T has been facing intense competition from carriers attracting customers in new ways. Last year AT&T bought DirecTV to offer national bundles of wireless and cable they say their rivals can’t match. Shares of AT&T are trading lower.
And it appears that the US consumer is shrugging off the stock market volatility as consumer confidence in January rose more than expected. Consumers don’t see the stock market weakness as having a negative impact on the economy.