After Hours

With Tech Tanking, Can Anything Save The System?

The big questions are: 1) Can an economy grow when its banks, energy companies and tech giants are all losing ground? 2) Can a hyper-leveraged global financial system survive if its main economies can’t grow? The answer to both questions is almost certainly “no.”

Futures Ignore Apple Plunge; Oil Rises Above $45 As Yellen Looms

For those who thought that the world's biggest company losing over $40 billion in market cap in an instant on disappointing Apple earnings, would have been sufficient to put a dent in US equity futures, we have some disappointing news: with just over 7 hours until the FOMC reveals its April statement, futures are practically unchanged, even though the Nasdaq appears set for an early bruising in the aftermath of what is becoming a disturbing quarter for tech companies. Instead of tech leading, however, the upside has once again come from the energy complex where moments ago WTI rose above $45 a barrel for the first time since November after yesterday's unexpected 1.07 million barrel API inventory drawdown.

Wall Street In Pain: 163 Hedge Funds Are Long AAPL Stock

Following the biggest Apple debacle in years, here is the reason why the hedge fund community is about to see even more redemption requests and underperform the market even more: according to the latest GS hedge fund tracker, at least 163 hedge fund are long the name which has just lost over $40 billion in market cap in the after hours. The good news: it used to be over 200 as recently as a year ago.

Apple Tumbles After Missing Sales And Earnings, Guides Below Lowest Estimate

Moments ago AAPL reported Q2 EPS of $1.90, missing expectations of $2.00 on revenue of $50.56BN which not only plunged by 13% from ayear ago, but also significantly missed expectations of $52 Billion. Perhaps the biggest driver for this was both the sequential and annual plunge in Chinese sales, which dropped to $12.5 billion from $16.8 billion a year ago. Worse, the company's guidance for Q3 revenues was absolutely abysmal, and now sees only $41-$43BN in Q3 sales, well below not only the median estimate of $47.35bn but below the lowest sellside estimate of $43.95bn.

IBM Reports Lowest Revenue In 14 Years; EPS Beats On "Full Retard" Tax Gimmick

Moments ago, IBM reported revenue of $18.7 billion, which may have been a beat to sharply lowered expectations of $18.3 billion, but was nonetheless the worst quarter in IBM history going back all the way to Q1 2002, the lowest quarterly revenue in 14 years. But it was the bottom line where the company went truly "full retard"...

Netflix Crashes After Forecasting Slower Subscriber Growth, Despite Burning $1BN In Last 12 Months

The reason why NFLX stock is crashing in the afterhours session is (mostly) because of the company's guidance of its widely followed international expansion. Here, instead of guiding to or above the consensus estimate of 3.45 million subs, Netflix disappointed dramatically and now anticipates only 2 million international streaming net adds, down from both the 2.37 mm a year ago, and certainly from the 4.51mm net adds last quarter.

Valeant Crashes Below $30 As Large Bondholder Calls "Default" Event

One week ago, we warned that "Valeant Lenders Demand Two Pounds Of Flesh For Covenant Waivers", a function of Valeant having virtually no leverage. Well, while Valeant proudly announced it had obtained a covenant waiver from its lenders late last week, it appears not everyone was onboard with the plan, and as a result moments ago Valeant stock crashed (below $30) after hours as major bond investor Centerbridge has notified the company that it intends to call a default event, presumably on annual report delays breaking covenants.

Oil Plunges After Surprisingly Large Inventory Build

Following last week's 'biggest inventrory draw in 3 months', expctations were for a 1mm build this week, so when API reported a huge 6.2mm build. Perhaps slightly offsetting this surge is a 1.93mm draw at Cushing (after Genscape forecast a 1mm draw at Cushing this week and expectations were for a 800k draw). After a manic buying day in WTI, oil prices are plunging after hours...

Crude Spikes After Biggest Inventory Draw In 2016

WTI's 'mysterious' spike into the NYMEX close extended after hours (almost as if someone knew something). Inventories drewdown 4.6mm barrels according to API (drastically less than the expected 2.85mm build). This is the biggest weekly draw since Jan 1. Cushing was expected to see a build of 100k (after 2 weeks of draws) but saw a considerably larger one at +620k. Distillates inventories built as Gasoline drewdown very modestly.

Weight Watchers Tumbles After Big Fat Loss

The bottom line for Weight Watchers stock: the drop in subscribers is weighing on the stock leading to a heavy plunge after hours following the big fat earnings miss.