Apple posted lower than expected results that impacted the stock and S&P, which is down more than 1% this week. Traders are seeing some of the best opportunities for earning profit in these choppy sessions as they are concerned with short-run profits. However, for investors with a long-term horizon, Apple’s lower than expected earnings must be taken patiently, says a report from Market Watch by David Weidner.Apple Inc.  (AAPL) Just A Stock, Not The Economy

Apple (AAPL) down, but still growing

The profits of the iPhone company surged 38% during the quarter. Apple Inc. (NASDAQ:AAPL) sold 35% more phones compared to the previous year. However, the stock failed to reflect this percentage increase. The Cupertino, California-based company saw $60 billion washed away from its market cap in after-hours trading. The stock took a hit primarily because analysts built up expectations that the company could keep on posting a growth 40% to 50% range forever, says Weidner.

Apple Inc. (NASDAQ:AAPL) is a component of Dow Jones Industrial Average, so it’s pricing will have a notable impact on the index. “But take a deep breath. Apple is just one company, and it continues to grow. Even if that growth is slowing a little,” says Weidner.

A good earnings season

In the first week of the S&P 500 earnings calendar, of the 61 companies 72% posted better than expected results while 56% posted revenue and sales above the expectations, according to FactSet.

Between June 30 and July 17, six sectors “have higher growth rates due to upward revisions” to the earnings estimates. In other words, it can be said Wall Street analysts were increasing the targets for the U.S. Ssocks. The forward 12-month price to earnings ratio is 16.8, a level significantly higher than the five and 10-year averages, notes Weidner.

This week was also a decent one, with 77% of the companies posting better than expected earnings. The year over year earnings decline, a number that was very high at the end of June, dropped to minus 2.4% from 4.5%, says Weidner. So, it can said that except for Apple Inc. (NASDAQ:AAPL), the earnings performance of the S&P 500 is generally coming in better than expected.

This teaches investors a lesson that short-term fluctuations should be ignored. Fundamental are still showing signs of strength, which is evident from decline in the jobless claims. Weidner concludes, “Apple may be the world’s biggest company, but it is hardly the whole economy.”