Like the pattern seen in Europe, stocks were mixed with a weak strength session. Holding up but not gaining much ground. The US market is supported by a bullish bias in a recovery trend that began 14 sessions ago, making it one of the longest positive streaks of 2015.
Traders seemed to wait for the current sales of ‘The Big One’ after closing. The publication of results from IBM.
This quarter, as in past 3 years, have been freshly welcomed with a turnover that disappointed (this has become a habit with 14 quarters of contraction) and the gloomy outlook (again, it’s become recurring) since the profit per share in 2015 is expected between $13.25 and $14.25.
IBM unveiled a sales 19,28 case against $22.4 in Q3 2014 while the consensus expected19,62.
Earnings per share (adjusted) stood slightly above the estimated $3.34 to $3.30. IBM fell more than 4% after hours before stabilizing around -3%.
Note also the sanction of 4.8% (and up to 6% at the meeting) imposed on Morgan Stanley for its disappointing quarterly with profit plunging -42.4% and a fall of -17% in trading activity.
Flextronics however excited the market with adjusted earnings of 27 cents per share instead of the expected 25, which resulted in a surge of 7.5%.
Sandisk soared 7% on takeover speculation by Western Digital (the ‘rumors’ pulled interest from Micron last week … the contenders begin battle?).
In economic data, nothing negative on Monday and a new sign of strength in the housing sector: the confidence index of house builders climbed + 3pts (to 64, the highest for 10 years) in October and the indicator of ‘expectations’ (future sales) jumped from + 7pts.Previous Post » Stocks Ended Up, As BoJ Causes Waves