Apple Plunges Despite EPS Beat On iPhone Sales Miss, Drop In China Sales, Weak Guidance And Strong Dollar WarningSubmitted by Tyler Durden on 07/21/2015 15:48 -0500
The company which was carrying the fate of not only the Dow Jones and the S&P 500 on its shoulders had taken the stairs up, and just took the elevator down.
Unleash the talking head spin...
The reason IBM stock is currently sliding and dragging down the broader Dow Jones future with it is that with Q2 revenues of $20.8 billion, the company not only missed expectations, but was a plunge of 13.4% from a year ago: a drop that surpasses the biggest revenue drop recorded during the peak of the financial crisis! This is also 13 consecutive quarter of declining Y/Y revenues.
For all those wondering just how INTC did it, here's the reason for Intel's beat in one simple chart.
Just when everyone thought it was fixed, crude inventories start building again as API reports (for the 2nd week):
*API SAID TO REPORT CRUDE SUPPLIES ROSE 1.8M BBL LAST WEEK
This follows a surprising 1.3 million barrel build last week reporrted by API. WTI slipped back to $61.00 after hours...
The Fed stimulates absolutely nothing but the media’s descriptions of it and the various economists and their models that depend solely on them being successful in doing so. If recessions are emotional and irrational pessimism as the monetary textbooks believe, then QE and ZIRP are just right sort of “happy pills” to push emotions back to the “right” direction. Is it any wonder the economy is in danger of sinking toward catastrophic failure?
Einhorn just found his next target: U.S. onshore E&Ps or the oil fracking companies.
Following yesterday's early MNI rumor that a Chinese QE is being "considered" and which sent the Shanghai Composite surging 3% and led to an initial boost in US stock futures, overnight the PBOC scrambled to once again deny such speculation. Of course, going full "cold Turkey" on Chinese stimulus would be too much for the market to handle, so in a piece by the WSJ also released overnight, the author said the PBOC would pivot from outright QE to mere LTRO, which is also not new and was reported over a week ago here in "China Floats QE Trial Balloon, PBoC May Launch LTROs." In any event, for now at least, Asian stocks are not happy despite Apple's latest blockbuster results, and neither is Europe, with the Stoxx 600 down 1%, and even the E-mini is hugging 2100 unable to levitate on any imminent central bank intervention.
IBM numbers in a nutshell: Revenue dropped by 11.9% to $19.6 billion; Net Income dropped by 2.4% to $2.3 billion...
And yet... GAAP EPS rose by 2.6% to $2.36!
Here's the accounting magic behind this "beat"
The past six years have transformed my disposition toward the markets from excitement to frustration to despair to disillusionment to sheer tedium.
In America’s fraudulent oligarch economy in which corruption and theft have become the preferred means to earn money, it’s no surprise doctors feel a need to participate. “Mr. Rorie was recruiting homeless people, prosecutors said, ...after hours of unnecessary tests and fake diagnoses, the homeless people would be sent off with sneakers - selected from stacks of shoeboxes in the clinics’ basements... "We can use the same patients like guinea pigs for anything we want,” Mr. Vainer was recorded saying in a government wiretap." Do no harm indeed.