Financials Market on April 21
The Tech sector showed bullish earnings. Apple and Qualcomm announced positive earnings at the close last night both beating estimates. Qualcomm does supply Apple with chips so it would be reasonable to assume that the company would also do well. Apple showed a profit of $5.99 billion compared to $3.33 billion at this point last year, sales were 83% higher. (1) Qualcomm raised its outlook for the rest of 2011 and posted $999 million in net earnings while last year they only posted $989 million. (2) American Express beat expectations earning $1.18 billion compared to $885 million last year. The company did show that expenses grew by 21% because of extra marketing and reward programs. (3) The owner of KFC, Taco Bell, and Pizza Hut is YUM which showed as showed flat sales at Taco Bell, a decrease of 3% at Pizza Hut, and a small gain of 1% at KFC. Growth in China helped create a 10% rise in profits. (4) McDonalds showed revenue of $6.1 billion due to Europe sales, giving the company a rise of over 9%. (5)
Unemployment benefits fell last week by 13,000 to a seasonally adjusted average of 403,000. The week before applications rose 31,000. During the recession applications rose as high as 659,000 and a number of around 375,000 is considered a sustainable job growth number. (6) Again, the S&P 500 is near the technical level 1340.00. It seems as though when it is within 5 points the market sells off. Please be mindful of this as the holiday week continues.
- Frank LaMantia, Financials Guru
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