Earnings: AAPL, NFLX Fall...PNRA, RVBD Rise in After-hours Trading...

Before the open on Tuesday, VMED +0.72, +2.85%, WHR -5.06, -7.52% and DD -0.97, -1.99% reported earnings.  After the close AAPL -33.12, -5.51% missed and NFLX -13.39, -16.66% expect to miss subscriber 2012 goal, reported earnings with negative reactions.  PNRA +10.02, +7.06% and RVBD +3.42, +23.51% also reported earnings with positive reactions.  Varied reactions indicate that selectivity is still functional and a key factor during this earnings season.

The AAPL miss could lead to a weaker multi-week trend as NQ futures are near its July 12 low in after-hours trading.

All nine sectors moved lower on Tuesday.  XLF, XLP, and XLY were the strongest sectors.

Breadth strengthened slightly as decliners led advancers 2.91 to 1 on the NYSE and 2.55 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ

Advancers        768          690

Decliners       2,240       1,761

The SPX moved up -12.21 at 1,338.31 closing below its 30 DMA and just below the mid-section of its April-July trading range of 1,422 – 1,266. 

Earnings of Interest Week July 23 - 27

Monday: BIDU, HAL, MCD, STLD, TXN, VMW, ZION

Tuesday: AKS, ALTR, AAPL, T, BIIB, BRCM, CHRW, DD, JNPR, LLTC, LMT, NFLX, NSC, PCAR, PNRA, BTU, RVBD, SAVE, SPG, TPX, VMI, WHR, VMED,

Wednesday: AEM, AKAM, BA, BMY, CAT, CTXS, CLF, COP, GLW, CROX, DAL, DLR, LLY, DAVE, F, HES, LRCX, LVS, ORLY, SWI, LCC, V, WDC, WFM, ZNGA, ALXN, TSLA

Thursday: MMM, ALK, AMZN, AMGN, CA, CELG, CERN, CSTR, CL, DECK, EXPE, XOM, FB, GILD, INFA, KMB, KLAC, MXIM, NTGR, POT, RCL, SBUX, UAL, UTX, VECO, HSY

Friday:

Technical Commentary:

SPY, DIA and QQQ pulled back for a third straight day and fell further in after-hours trading following AAPL earnings.  AAPL as all are aware is an important company and reaction during earnings season is an important factor whether the broad indexes will hold July 12 support or not.   

Look for earnings reactions to continue this week after VMED, WHR, DD, AAPL, NFLX, PNRA and RVBD released earnings on Tuesday.  Will AAPL trade down on Wednesday or hold its after-hours close at 567.

     

The Euro led interest rates and financial stocks lower.  The VIX rose while gold remains stable and suggesting a rising level of fear on Tuesday.

Tuesday Highlights:

SPY closes down -1.16 on 173.1 million shares, closed below 30 DMA

The Euro moved down -54 pips, closed at 1.2061

TNX -0.31 at 14.04 a new closing low

VIX gained +1.85 at 20.47

XLF down -4 cents at 14.21

AAPL down -2.91 at 600.92 on 17.4 million shares, down -33.12 after reporting earnings, expected move  ...

FB down -30 cents at 28.45 on volume of 11.5 million shares, reports earnings on Thursday AMC...

KYAK +1.10, +3.49% at 32.65 on .642 million shares

FIVE +5 cents at 27.60 on .343 million shares…

The Market Forecast green line is pointed down below 80.

14 of 100 NDX stocks closed higher on Tuesday…

Leading NDX 100 stocks included BIDU, GRMN, VMED, NTAP, MU, RIMM, LINTA, PCAR, NFLX, GMCR

Lagging NDX stocks included CSCO, FFIV, APOL, SIAL, ATVI, VRTX, FAST, NUAN, CELG, SHLD

Leading stocks > +2% on Tuesday included SINA

Losing stocks < -2.0% included ANR, ESI, LDK, TSL, UAL, MCP, CMG, CLF, SWKS, INFA, ATI, ZION, CRM, A, FCX, ANF, TSLA, JNPR, ZAGG, SLB, CROX, DECK, CRUS, AKS, X

Stocks to Watch on Wednesday

Holding Above 30 DMA = 15

HLF, URE, MOS, CHL, ANF, SLB, TLT, WDC, UCO, TPX, SWK, TIF, VMW, ZAGG, FAZ

Moving Above 30 DMA = 0

Moving Below 30 DMA = 3

LNKD, SWKS, V

Staying Below 30 DMA

ATI, CRM, FCX, IBM, STI, TSLA CIEN, CMG, COH, CREE, CRUS, DECK, ESI, FAS, GES, GS, ICE, JNPR, RCL, RVBD, SMH, X, ZION, DHR, DLR, BAC, C, DE, UAL, FB, VECO, AKS, CSTR, JDSU, LDK, MCP, CLF, CROX, GLW, INFA, NTES, SWI, TSL, A, CDE, SOHU, TBT, HUM, SINA, F, GRPN, NKE, ANR, LVS

Seven Week Intermediate Term Market Trend: Up

Short Term Market Trend: Down