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

AAPL hit after hours, though Netflix provides some positive spark


InvestorPlace Market RecapGreat 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) and Netflix (NASDAQ:NFLX).

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) 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) and Google (NASDAQ:GOOG) 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, +2.3%) and 3M (NYSE:MMM, +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) disappointed investors as revenues missed forecasts. COH shares fell more than 16%.

Lastly, McDonald’s (NYSE:MCD) 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), Lockheed Martin (NYSE:LMT), AT&T (NYSE:T) and Microsoft (NYSE:MSFT).

Three Up

  • Advanced Micro Devices (NYSE:AMD): Up 11.4% (28 cents) to $2.73.
  • Safeway (NYSE:SWY): Up 5.4% ($1.01 cents) to $19.85.
  • Groupon (NASDAQ:GRPN): Up 5.3% (26 cents) to $5.09.

Three Down

  • Molycorp (NYSE:MCP): Down 10.8% (95 cents) to $7.88.
  • R.R. Donnelley (NASDAQ:RRD): Down 4.9% (48 cents) to $9.28.
  • Research In Motion (NASDAQ:RIMM): Down 3.1% (55 cents) to $17.35.

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

Article printed from InvestorPlace Media,

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