Podcast: Play in new window | Play in new window (Duration: 13:16 — 6.1MB)
DOW + 30 = 18,199
SPX – 3 = 2139
NAS – 33 = 5250
10 Y + .03 = 1.79%
OIL – .76 = 49.20
GOLD – 6.40 = 1267.70
After the closing bell, yesterday, Apple (AAPL) reported its first decline in annual revenues in over a decade, profit just barely beat expectations. Apple forecast higher sales in the holiday quarter but that doesn’t seem to be enough to motivate investors. Meanwhile, iPhone sales continued their decline, falling 5% from the previous year, although that’s an improvement from the 15% drop seen in fiscal Q3.
Apple’s cash pile also continued to swell to a record of over $237 billion – if that was its own public company it would be the world’s fourteenth largest. Apple is still making money, about $9 billion in profits in the last quarter, but the bigger question is “what’s next?†The answer comes tomorrow, as Apple introduces the next generation of its MacBook laptop. And maybe something to do with Apple TV – possibly a playlist for TV. We’ll see. Apple sank 2.3 percent in today’s trading.
Boeing (BA) were trading at their highest level this year, after the world’s largest plane maker reported a jump in quarterly profit despite slower sales. The stock gave the biggest boost to the S&P and the Dow.
Coca-Cola (KO) reported better-than-expected quarterly revenue, helped by higher prices for sodas and strong demand for water and sports drinks in North America. Coke reported profit of just over $1 billion on revenue of $1.6 billion.
Tesla (TSLA) shares were up about 5% in after-hours trade, after the electric car maker reported results that were better than expected. Third-quarter was $2.3 billion in revenue, well above targets of about $1.9 billion. Tesla posted a profit of $111 million, or $0.71 on an adjusted per share basis, beating estimates that called for a loss. Tesla maintained its guidance for 24,500 vehicle deliveries in the third quarter, and its second-half estimate of 50,000 deliveries, at the low end of its full-year guidance of 80-90,000.
Chipotle (CMG) is optimistic on next year. The burrito chain announced diluted earnings of $0.27 a share, missing Wall Street’s estimate of $1.56 by a wide margin. Same-restaurant sales dropped 21%. The company expects a rebound next year.
Pokémon Go didn’t help Nintendo (NTDOY) much. Despite the success of the popular iPhone game, and a big one-time gain from selling its controlling interest in the Seattle Mariners baseball team, the Japanese games company’s figures were dented by the strength of the Japanese currency. The video-game maker posted an operating loss for the quarter and cut its operating profit outlook for the fiscal year.
