The broader markets rebounded strongly on Monday after last week’s tapering off, and it was joined by a rebound in gold, pleasing stock and commodity investors alike.
The S&P 500 finished 0.8% higher, while the Dow Jones Industrial Average improved by 0.7%. Gold, meanwhile, continues to set new intermediate-term marks, with prices topping the $1,300 level on Monday – that’s 22% higher year-to-date, and the best price the yellow metal has seen in 15 months.
Tuesday’s action is going to be largely determined by a thick slate of earnings reports, such as that of Mylan NV (NASDAQ:MYL). However, a few stocks not reporting could be strongly on the move today, including Apple Inc. (NASDAQ:AAPL) and Yelp Inc (NYSE:YELP).
Apple Inc. (AAPL)
Apple looks to start off Tuesday in the red, which would be more of the same for the tech stock. AAPL shares are mired in an eight-day slump – the longest such streak by Apple in 18 years.
Among things fueling the selloff were weaker-than-expected earnings reported last week – troubling, considering that everyone already anticipated that Apple was going to have a historically bad quarter – and news that Carl Icahn exited his stake in the company on fears about “China’s attitude.”
But maybe, just maybe, Apple is in for a bounce soon.
The recent declines have sent AAPL spiraling down through its 200- and 50-day moving averages, but now Apple shares find themselves in an area of price resistance around the $93-$94 mark – around lows reached in January-February of this year. Apple also is extremely oversold at the moment, with the shares sporting a Relative Strength Index (RSI) reading of just 21.
If Apple is to bounce, it’ll have to be technical, though, as news refuses to cooperate with the Cupertino company. The latest: Apple no longer has exclusive rights to the name “iPhone,” giving way to a Chinese accessory maker that produces “handbags and other leather products branded ‘iPhone’”
Mylan NV (MYL)
Pharmaceutical firm Mylan is set for a strong open Tuesday morning on the power of a strong improvement in revenues for its most recent quarter.
Mylan recorded $2.19 billion in revenues, up 17% year-over-year, on an equal rise in generic drug sales. European results were especially robust, up 45% from the year-ago quarter.
Meanwhile, net income did fall from $56.6 million to $13.9 million year-over-year, though on an adjusted basis, Mylan’s 76 cents per share in profits managed to beat Thomson Reuters I/B/E/S-polled analysts’ estimates of 74 cents per share.
Mylan also still likes what it sees going forward. The company reaffirmed earnings guidance of $4.85 to $5.15 per share on $10.5 billion to $11.5 billion in revenues.
MYL shares were up 5% in Tuesday’s premarket trading.
Yelp Inc (YELP)
Yelp is getting a boost from the “smart money” this morning.
Hedge fund manager David Einhorn, who runs Greenlight Capital, announced that his fund had taken a stake in the online review company.
According to a letter obtained by Yahoo Finance:
“We purchased Yelp at an average price of $21.16. YELP is a dominant search and review website for local businesses with roughly 200 million unique monthly visitors and the 21st most popular mobile app in the U.S. The stock has suffered due to missed expectations and anxiety about an upcoming negative documentary.”
The documentary in question is “an investigative look into accusations that online marketing giant Yelp! is running a mob-like extortion racket against business owners who refuse, or can’t afford to pay-to-play.”
Yelp sorely needed the vote of confidence, as shares are off more than 25% year-to-date. YELP shares should cut into that deficit this morning with 5% gains as of Tuesday’s premarket trade.
Kyle Woodley is Managing Editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities.
