The market was volatile today, as expected. In the morning, while Geithner and Paulson were getting questioned by the Congress, the market remained weak. After AAPL's media event got started, things became a little better. AAPL did indeed reveal its new tablet, the "iPad". The initial reaction was not so good, as AAPL sold off to just below $200. But, as soon as the "$499" price tag on the iPad was announced, AAPL jumped $10 to just above $210, and eventually closed up about $2, at $207.9.
As the Fed announced a stronger economic assessment and kept interest rates at historic lows, the financials saw some buyers come back in, in the afternoon. GS traded as low as $148.27 in the morning, but, bounced back to close at $151.5. Other financials stocks were much stronger: PRU +4.37%, WFC +4.48%, PNC +3.23%, BAC +2.84%. Biotechs were strong with GILD leading the way, adding +7%, and AMGN gaining +2%.
After the market, NFLX jumped more than +17% after it reported a strong quarter and raised guidance for 2010! However, QCOM disappointed with its cautious forecast, sending its shares down more than 10% in after-hours trading.
The Dow finished up +41.87 points; SPX added +5.33 points; Nasdaq gained +17.68 points:
XLF (financials) led the market's bounce with a +2.43% gain. XME (metals and mining) closed down less than 1%. UNG (natural gas) continued to fall, losing 3.56% while USO (oil) dropped 1.15%. Both GLD (gold) and SLV (silver) went lower. BTK (biotechs) rose +1.25%. FXI (Chinese ADRs) slid 0.57%.
SPX
SPX added +5.33 points to clsoe at 1097.5, just below the 1100 level. Its daily MAs and MACD slid.
Nasdaq
Nasdaq gained +17.68 points to close at 2221.41, keeping above the 2200 level.
Nasdaq was able to rise higher, keeping above 2200, its support level. On the other hand, SPX still was not able to close back above 1100. Commodity-related sectors remained weak. So, the broader market was still struggling. Tomorrow, we'll have more important earnings reports, including those from MSFT and AMZN. AMZN received some positive words from an analyst this morning, expecting a strong 4Q. AMZN shares traded +2.74% higher today. However, investors may be questioning how AAPL's iPad will affect AMZN's Kindle. MSFT is also expected to deliver a solid quarter. Now that the market has gotten a pullback, perhaps the investor will be more inclined to react positively on strong results. But, like I said yesterday, until SPX goes back to above 1120, the market is still vulnerable.
Good night and HappyTrading! ™
Disclosure: AAPL long
Disclosure: No positions