The good news is the Dow Jones Industrial Average was able to rally almost 100 points from the intraday low for the second consecutive session. The bad news is the index was down 200 points or more at its worst moment. Nonetheless, the Dow has now rallied higher for three consecutive sessions.
Near term resistance points have been established at 19,875 then 20,000, while 19,750 looms large as a critical support point.
Dow Jones Industrial Average
After the bell, Apple reported earnings that beat Wall Street consensus on the top and bottom lines.
- Revenue was $78.4 billion against consensus of $77.3 billion and earnings per share $3.36 versus $3.21.
- iPhone units of 78.3 million was well above consensus, and the average selling price of $695 is a record. This is the most impressive part of report (I love pricing power), an all-time record, which means the company sold lots of iPhone 7 Plus and hints at a Super Cycle for the iPhone 8 that could blow away already grandiose expectations.
- iPad 13.1 million units sold.
- 5.4 million Macs sold.
- Service revenue of $7.2 billion is also up big, 17% from a year ago.
Company CEO Tim Cook called it a “dynamite quarter,” and it was. Apple’s cash hoard is now at $249 billion.
Techs could lead the way today, but investors are looking for financials to resume their leadership position. It might help to get the Treasury Secretary and other key members of the cabinet confirmed.
Meanwhile, the action in big pharma was heartening suggesting a deal could be crafted between the industry and President Trump.