Wave of Earnings, News, Buffets Wall Street
Even though the overall stock market remains on the quiet side, there is a tremendous amount of news, especially on the earnings side.
Just about everything that needs to be said about Apple has been said, but here are a few fascinating nuggets for you.
If there was any concern that the iPhone and iPad would cannibalize sales of other Apple products, that debate can be put to rest. Sales of Macs and iPods were much better than expected. That's even more interesting when you account for the talk that iPods were pretty much a legacy product.
A slew of analysts updated their price target on Apple, but the headline from Goldman Sachs would have been the perfect tweet on the company's earnings: "$98 billion in cash, 116% EPS growth, and a depressed valuation."
As for the overall market, many traders believe that much of the sense of "waiting" in the market comes from Greece as we await any news of a deal with private bondholders .
More meetings are expected but still no concrete news. It should be noted that the Greek equity market is one of the few European gainers on Wednesday.
In terms of U.S. equities, several Dow Jones Industrial Average components are making news.
Boeing'snumbers were mixed, but the key takeaway is the lowered earnings per share guidance. The major reason for the below consensus outlook was the pension burden. ?
United Technologieshad solid EPS, but revenue was a little light. That theme was true for guidance, as well.
Exxon Mobil saw its price target raised at Oppenheimer to $100 a share from $90 a share. Natural Gas will be a drag in 2012, but the firm says Exxon will still trade at a premium to its peers.
On the other side of the ledger, Oppenheimer downgraded McDonalds to “perform.” According to Oppenheimer, the Golden Arches remains best in class and that there's no material change in outlook. The justification for the downgrade stems from currency headwinds and no real catalyst for upside in earnings.
A few other notable stocks to watch:
CA Technologies increased its dividend 400-percent, from a nickel to 25 cents.
Banks are weaker. JP Morgan downgraded both Goldman Sachs and Morgan Stanley to “neutral” from “overweight.”
Delta Air Lines reported strong earnings on both the top and bottom lines. Capacity is down year-over-year, but profit per passenger is up.
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