Daily Stocks Update: US Equities Advance Despite Apple, Twitter Miss – Apr 27, 2016


US equity indices were mostly higher despite weaker than expected earnings reports from Apple and Twitter. The Dow 30 index closed 13.08 points up to 17,990.32 (+0.07%), the S&P 500 index was up 3.91 points to 2,091.70 (+0.19%), and the Nasdaq was down 7.50 points to 4,888.28 (-0.15%). The S&P 500 VIX, which is considered a gauge of market uncertainty, edged down 0.12 points to 13.96 (-0.85%) to indicate that risk appetite is still in play.

Apple’s earnings report turned out to be a disappointment for investors, as the company reported its first-ever decline in iPhone sales and its first revenue drop in 13 years. The company sold 51.2 million iPhones during the quarter, down from the 61.2 million in sales from the same quarter a year ago. Sales dropped by more than 25% in China, which is its second largest market next to the United States.

Meanwhile, Twitter shares also plunged after the company reported subdued growth in its user base from 305 million by the end of 2015 to just 310 million at the end of the March quarter. Share prices were also dragged down by lower than expected revenue, slower spending by advertisers, and a downbeat forecast for this quarter’s revenue. EBay, on the other hand, printed stronger than expected earnings figures of 0.41 per share.

Euro zone equities down, FTSE up

European markets chalked up a mixed performance, as the UK posted stock market gains while the rest of the EU lagged behind. The German DAX slipped 34.76 points to 10,259.59 (-0.34%), the French CAC 40 was down 12.94 points to 4,533.18 (-0.28%), and the Euro Stoxx 50 was up 6.08 points to 3,123.70 (+0.20%).

The London FTSE edged up 23.60 points to 6,284.52 (+0.38%) despite the ICM opinion poll indicating that 46% of voters included in the survey would still like to exit the EU. The UK preliminary GDP reading for the first quarter of the year is up for release today and a 0.4% expansion is eyed, slower than the previous quarter’s 0.6% growth figure.

Asian equities mixed ahead of central bank events

Investors seem to be taking it easy today, as there are three central bank announcements lined up next. The Nikkei is down 118.97 points to 17,239.75 (-0.65%), the S&P ASX 200 is up 53.06 points to 5,273.70 (+1.02%), and the China A50 index is down 0.40 points to 9,648.61 (-0.01%).

The US Federal Reserve, Reserve Bank of New Zealand, and Bank of Japan are set to announce their monetary policy decisions in the upcoming trading sessions.


To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

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