Apple Just Can’t Please — Wednesday’s IP Market Recap

by Marc Bastow | January 23, 2013 5:23 pm

Apple Just Can’t Please — Wednesday’s IP Market Recap

IPMarketRecap Apple Just Can't Please    Wednesday's IP Market Recap [1]Great earnings news from two tech titans pushed markets forward Wednesday to keep the Dow Jones and S&P 500 at five-year highs. That served as a precursor to another pair of big tech earnings — Apple (NASDAQ:AAPL[2]) and Netflix (NASDAQ:NFLX[3]).

One company’s report was followed by fireworks. The other was followed by a firing squad.

Apple reported record revenues and earnings for its fiscal first quarter — sales grew 18% to $54.5 billion and came in just below forecasts, while earnings inched ahead to $13.1 billion, with EPS of $13.81 topping expectations of $13.47. AAPL also sold a record 47.8 million iPhones and 22.4 million iPads, which came in line with estimates.

However, gross margins declined to 38.6%, and the company’s second-quarter revenue forecast came in shy of estimates, leading investors to slam AAPL shares by nearly 6% in early after-market trading.

On the flipside, Netflix (NASDAQ:NFLX[3]) was rocketing after the bell, up 30% after Q4 earnings came in the polar opposite of expectations. NFLX earned 13 cents per share, shocking analysts who expected the company to lose the same amount. Revenues of $945 million also came in well ahead of estimates.

During regular Wednesday trading, IBM (NYSE:IBM[4]) and Google (NASDAQ:GOOG[5]) headed higher thanks to good news during their reports the previous day. IBM’s 4% gains were enough to lead the Dow and challenge its all-time high prices, while Google advanced 5%.

Disney (NYSE:DIS[6], +2.3%) and 3M (NYSE:MMM[7], +0.2%) also were toying with all-time highs, helping the Dow Jones gain 0.49% to 13,779.93. The Nasdaq improved 0.33% to 3,153.67, and the S&P 500 edge up 0.15% to 1,494.81.

Earnings were not positive across the board, however. Luxury retailer Coach (NYSE:COH[8]) disappointed investors[9] as revenues missed forecasts. COH shares fell more than 16%.

Lastly, McDonald’s (NYSE:MCD[10]) warned that same-store sales could fall in January, though its earnings did top estimates, and shares managed to finish fractionally higher.

Earnings notables for Thursday include Bristol-Myers Squibb (NYSE:BMY[11]), Lockheed Martin (NYSE:LMT[12]), AT&T (NYSE:T[13]) and Microsoft (NYSE:MSFT[14]).

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long AAPL and MSFT.

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/investorplace-market-recap/
  2. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  3. NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
  4. IBM: http://studio-5.financialcontent.com/investplace/quote?Symbol=IBM
  5. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  6. DIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DIS
  7. MMM: http://studio-5.financialcontent.com/investplace/quote?Symbol=MMM
  8. COH: http://money.cnn.com/quote/quote.html?symb=COH&source=story_quote_link
  9. disappointed investors: http://investorplace.com/2013/01/coach-a-first-class-ticket-to-nowhere/
  10. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  11. BMY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BMY
  12. LMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=LMT
  13. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  14. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  15. AMD: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMD
  16. SWY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SWY
  17. GRPN: http://studio-5.financialcontent.com/investplace/quote?Symbol=GRPN
  18. MCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCP
  19. RRD: http://studio-5.financialcontent.com/investplace/quote?Symbol=RRD
  20. RIMM: http://studio-5.financialcontent.com/investplace/quote?Symbol=RIMM

Source URL: http://investorplace.com/2013/01/wednesdays-ip-market-recap-ibm-goog-lcc-dis-coh-mcd/
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