It's nice to see a late recovery after a very ugly day, but it feels awfully manipulated when it comes 15 minutes before the close on a story in the Wall Street Journal about potential QE3. Is it just a coincidence that this story happens to come out as the market is stumbling to the worst close in a while?
Interestingly, the late bounce was enough to move the S&P 500 back up over the key 50-day simple moving average at 1333, which was breached earlier. That provides some hope, but it is not a firm foundation.
Earnings reports are rolling in with Netflix (NFLX), TripAdvisor (TRIP) and Buffalo Wild Wings (BWLD) being hit pretty hard on weak numbers while Panera (PNRA), Altera (ALTR) and Tempur Pedic (TPX) are popping a bit.
Apple (AAPL) numbers just hit and the first reaction is to the downside as earnings per share came in at $7.65 vs. estimates of $10.23. Revenues are also soft. An AAPL miss is rather stunning given its history of beats, but the guidance is key. There is a little panic in the air as this is very unfamiliar action from AAPL. I suspect the bounce players will be sniffing around and there may be some recovery when the conference call starts.
Overall, the market was saved by this late news about a Fed move, but you have to wonder if the Fed is going to have much lasting influence this time as it depletes its ammunition.
Have a good evening. I'll see you tomorrow.
