The stock markets in the United States suffered another decline today as Apple entered the correction territory.
In an interview with Bloomberg, Randy Warren, manager at Warren Financial Service & Associates said, “There’s some concern over Apple — it’s a big stock that has a big impact on all the indexes. We’ve seen a lot of companies struggling this earnings season. There are a lot of global growth concerns out there.”
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Today, 32 companies listed on the S&P 500 are expected to report its financial results. According to Bloomberg, almost 75% of the S&P 500 companies already released its financial results. Seventy-four (74%) out of those companies posted better-than-expected earnings while around 50% beat sales estimates.
Bill Schultz, chief investment officer at McQueen, Ball & Associates commented, “When investors look at the tail-end of earnings season, you’ve had some companies come out and disappoint, and they’ve been punished for it.”
Yesterday, the markets were negatively impacted by investors’ concern regarding the global economy. The manufacturing sector in China and the United States declined last month.
The Department of Labor is scheduled to release its jobs report for July. Economists polled by Bloomberg estimated that the economy created 225,000 jobs, and the unemployment rate remained at 5.3%.
Policymakers want to see further improvement in the labor market and the return of inflation to its 2% target before implementing an interest rate hike.
- Dow Jones Industrial Average (DJIA) – 17,598.20 (-0.52%)
- S&P 500- 2,098.04 (-0.28%)
- NASDAQ- 5,115.38 (-0.25%)
- Russell 2000- 1,231.79 (-0.56%)
- EURO STOXX 50 Price EUR- 3,619.31 (-0.44%)
- FTSE 100 Index- 6,686.57 (-0.03%)
- Deutsche Borse AG German Stock Index DAX- 11,456.07(+0.11%)
- Nikkei 225- 20,520.36 (-0.14%)
- Hong Kong Hang Seng Index- 24,406.12 (-0.02%)
- Shanghai Shenzhen CSI 300 Index- 3,948.16 (+3.11%)
Stocks in Focus
The stock price of Apple declined 3.28% to $114.54 per share. The tech giant is already in the correction territory. The shares of iPhone maker declined 15% from its highest price at $134.54 on April 28. Apple lost approximately $113 billion in market capitalization.
Netflix gained more than 7% to $121.15 per share. Guggenheim analyst Michael Morris initiated coverage on the shares of Netflix with a Buy rating and a $160 price target. Morris expected the online video streaming company to achieve an international margin of around 26% and subscriber growth of 12% (compound annual growth rate) by FY20.
The stock value of Sprint increased more than 4% to $3.49 per share. The company reported progress in its turnaround efforts based on its financial performance for its first fiscal quarter of 2015. Sprint reported a 14% increase in adjusted EBITDA to $2.1 billion. Its operating revenues were $8 billion and net loss was $20 million or $0.01 per share. The company added 675,000 net new subscribers during the quarter.