April 25, 2016

Stocks End Mixed as Tech Falls on Earnings

Stocks End Mixed as Tech Falls on Earnings WEEKLY UPDATE – APRIL 25, 2016 Stocks ended last week mixed on earnings that were largely better than expected, though the tech sector disappointed. For the week, the S&P 500 gained 0.52%, the Dow grew 0.59%, and the NASDAQ lost 0.65%.[1] First-quarter earnings reports drove a lot of market activity last week. Though analysts expect overall S&P 500 earnings to be negative for the fourth quarter in a row, the news so far is more about earnings surprises and fewer negative revisions to estimates. Given how low the bar was set by many corporate teams, it’s not so unexpected to see positive surprises. With reports in from 132 S&P 500 members, overall earnings are down 7.9% on 1.1% lower revenues, though nearly three-quarters beat their earnings estimates.[2]   However, the tech sector is another story. Tech stocks sold off after disappointing results from major players. Overall, much of the tech sector is painting a picture that is the inverse of the rest of the market – many companies are failing to rise to the expectations built over previous quarters of strong growth, disappointing investors.[3] Will investors hold on to their optimism in […]