Earnings reports are coming full force. Apple (AAPL) reported last night, and while revenue and profits are down compared to this time last year, Apple still beat because Wall Street was expecting a terrible quarter. Apple is suffering from a slowdown of iPhone sales in China, but is being buoyed by an increase of iPad and iPhone sales here in the US. They're practically the only Nasdaq stock that's advanced in the last 24 hours.
AMD reported two days ago as well. Their earnings missed, and the stock has sunk since the announcement. Despite the recent dive in their stock price, I am anticipating AMD is horribly undervalued long term. They are making the GPU for all 3 of the major next gen video game consoles, and they are making the CPU for the biggest two (Playstation 4 and Xbox One). Add to this the fact that it's July, and retailers have already received so many pre orders that they're worried about having enough supply (of Xbox One and PS3). Add to this the fact that the life cycle of a console is 5 to 10 years, and you realize this is a minimum of 5 years of massive revenue for AMD. If I were a private investor, I'd put every ounce of cash I had into AMD.
Other notable earnings beats included Facebook (FB), Baidu (BIDU), and Visa (V).
On the whole the market has been making VERY small gains this week, going up maybe 10 or 20 points a day. Today is the first real pullback the major indexes have seen. Here recently, a lot of stocks and the broader market are acting like they're setting up for a correction to the downside.
And a lot of my charts are showing it should be soon...
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