Equities have continued to consolidate as pull backs in the S&P have remained much calmer than those of the Nasdaq. The NQ though was able to hold the major support level at 3025 with a low of 3023.50 before recovering.
Big names such as AT&T are all sliding today on weaker than expected earnings and the durable goods number fell in March, the largest drop in seven months, thus seeming to stop a continued rally in the stock market before Friday's GDP release.
The biggest reason for being bearish Netflix is the high price-to-earnings ratio at which they are currently trading. The high operational costs of the company and its very low profit margins do not justify such irrational exuberance.
Apple has slumped in recent trading as it combats slowing top line growth rates and contracting gross margins. This has contributed to the, so far, rapid 25% decline in share price from peak at $705 in late September.
Apple announced it has sold three million iPads in the three days since the launch of the iPad Mini. Canaccord Genuity Tech Analyst Michael Walkley estimates Apple will sell 9.25 million iPad Mini units in the December quarter and 40 million units in fiscal 2013.
Hurricane Sandy is far from a dandy, threatening to be one of the worst storms in history. Because it will blow away ghosts and goblins it is being called the “Frankenstorm.” It will also blow energy demand.