Earnings Winners Outrun Losers but Apple Hits Hurdle
On Tuesday, I wrote, Apple, McDonald's Headline Earnings Wednesday, and the winning streak continued before the open on Wednesday with two more winners.
Then came Apple (AAPL) after the close. Apple beat EPS estimates by 37 cents per share earning $13.81 per share. The initial after-hours reaction to Apple's beat was a spike to the upside. I am not sure of the high, but I saw $533 flash on the TV screen before Apple shares were sliced. Apple missed on the revenue line, iPhone sales were below estimates and guidance came in below expectations. I am not sure of the after hours low, but I saw a print below $450.
Apple traded between $504.77 and $514.99 pre-earnings on Wednesday influenced by my annual pivot at $510.64, which now must be considered a risky level. My annual value level is $421.04 with a semiannual pivot at $470.21 and annual risky level at $510.64. Any investors concerned about Apple's performance thus had the opportunity to reduce long positions at $510.64.
My scorecard for earnings premarket Tuesday through premarket Wednesday:
Reporting premarket Tuesday DuPont (DD) ($46.99) beat EPS estimates by two cents earning 11 cents per share. DD traded up to $47.95 on Tuesday then returned to my quarterly pivot at $47.55. The stock remains hold rated with my monthly value level at $41.24.
Reporting premarket Tuesday Johnson & Johnson (JNJ) ($73.23) beat EPS estimates by two cents earning $1.19 per share. JNJ cut forward guidance so that stock traded around its weekly pivot at $72.88 on Tuesday and Wednesday. JNJ still has a buy rating with monthly, quarterly and semiannual value levels at $71.86, $70.97 and $69.50 and my annual risky level at $76.79.
Reporting premarket Tuesday Travelers (TRV) ($76.31) beat EPS estimates by 60 cents earning 72 cents per share. TRV set a new multi-year high at $80.00 on Tuesday then as low as $77.15 on Wednesday. The stock still has a buy rating with my monthly value level at $70.65 with a weekly pivot at $76.10.
Reporting premarket Tuesday Verizon (VZ) ($42.54) missed EPS estimates by 15 cents earning 38 cents per share. VZ rebounded as the company blamed Super Storm Sandy for the miss, but the rebound failed at its 50-day SMA at $43.37. The stock still has a hold rating with my annual value level at $40.76 with a weekly pivot at $43.33 and quarterly risky level at $45.88.
Reporting aftermarket Tuesday Cree (CREE) ($33.76) beat EPS estimates by three cents earning 23 cents per share citing surging demand for LEDs. CREE gapped higher on Wednesday to a new 52-week high at $41.20. The stock has a hold rating with a weekly pivot at $35.29 and annual risky level at $49.93.