The Closing Look

Stocks opened lower but closed mixed on Wednesday after Apple Inc (AAPL) gapped down after reporting earnings. A slew of other stocks reported earnings as well and, so far, there is a slight bias to the downside. Meaning, more stocks are falling, after reporting earnings, than rallying. Stocks turned higher after oil prices reversed on a report that showed supply tightened slightly. Economic data was mixed. Mortgage applications slid -4.1% last week, even though mortgage rates slid. The October services PMI index rose to 54.8 higher than the last reading of 52.3. Meanwhile, new home sales rose by 3.1% to 593k last month. The Fed’s will end its next meeting on Wednesday Nov 2nd.

Gary’s Thoughts: Another day market defended with financials leading the way with the relative bid. Normally, our thought would be that since every time it looks like they are going to send the market into oblivion, it reverses…that we have to finally go higher. But then within the next day, the market stalls. We suspect we will have another gap to the upside tomorrow off of today;s reversal but we need to see better action in all the areas that are not working. It hasn’t happened yet. Apple was more of a non-event as it was only down 2% and defended at support. Tomorrow, a slew of earnings in the down and out biotechs and many others, including Google and Amazon.