Stocks rebounded to close higher on Wall St. Apple results showed it sold fewer iPhones than expected in the latest quarter. Bobbi Rebell reports.
Stocks rally; Apple iPhone miss
Crude prices did a 360 on Tuesday, surging and driving the stock markets higher.
But in a break from recent patterns, the energy rally was accompanied by strong earnings Tuesday, notes Wunderlich’s Art Hogan:
SOUNDBITE: ART HOGAN, CHIEF MARKET STRATEGIST, WUNDERLICH (ENGLISH) SAYING:
“People started paying attention to the other positive catalysts, so a host of good news from some of the consumer staples companies around today, and I think that’s certainly constructive for this market.”
After the closing bell, Apple earnings came in overall better than forecasts, but revenues missed. Apple sold fewer iPhones than expected in the latest quarter, with its slowest-ever growth in shipments. Apple is feeling the pinch of the softness in the Chinese market.
The purchase of retailer Stuart Weitzman proved a shoe-in for Coach. That helped the handbag maker boost its quarterly sales for the first time in 10 quarters.
Retail analyst Dana Telsey:
SOUNDBITE: DANA TELSEY, CEO, TELSEY ADVISORY GROUP (ENGLISH) SAYING:
“They are going to monetize some of their investments in real estate, I think. What they do with that cash whether it’s dividend, whether it’s acquisitionsm certainly, or give it back to shareholders.”
AI announced a massive restructuring aimed at making itself leaner and boosting profit.
Investors got mixed economic data. Consumer confidence rose in January. Home prices increased in November. But services activity slipped in January.
The rise in oil prices also drove stocks higher in Europe.