Tuesday proved to be an "opposite day" of sorts on Wall Street, with
several sector giants reporting, and their respective businessmates turning in
the opposite direction of the news. Cases in point: Goldman Sachs (NYSE: GS )/
Bank of America (NYSE: BAC ) and IBM (NYSE: IBM ). But the big news of the day
didnt come until after the bell, when Apple (NASDAQ: AAPL ) released the report
everyone was waiting on. And it flopped. Apple threw up a rare earnings miss
Tuesday, reporting earnings per share of $7.05 compared to analyst estimates for
$7.39. In its first report announced with CEO Tim Cook at the helm, Apple said
it sold just more than 17 million iPhones, which was 3 million short of
expectations. The news sent AAPL stock down 5% in after-hours trading to below
the $400 mark . Earlier Tuesday, the financial sector threw itself a ticker-tape
parade to the tune of a 6% gain in the KBW Bank Index (BKS) that tracks 24 of
the largest publicly traded financial companies. This came despite Goldman
Sachs' third-quarter earnings report, which had GS posting only its second
quarterly loss in the company's 13-year history as a publicly traded stock and
a wide earnings miss. And it also came despite Bank of America's third-quarter
earnings report, which did reveal earnings of 56 cents per share vs. EPS
estimates of 20 cents and a 6% climb in revenue, but still showed massive
weaknesses in BofA to anyone willing to look a little closer. No, it's
apparently still good times for anyone dealing dollars. Goldman Sachs finished
up 5.52% at $102.25, and BAC stock finished up more than 10% at $6.64 almost
the highest it has traded since Sept. 29, when BofA announced it was charging
$5-per-month debit-card fees . And riding the gravy train higher were banking
acquaintances JPMorgan Chase (NYSE: JPM , +6.77%, $33.14), Citigroup (NYSE: C ,
+5.9%, $25.86) and Deutsche Bank (NYSE: DB , +5.25%, $37.91), among others. Not
faring as well on its own bad news was IBM. While IBM reached an all-time peak
in stock value last week and on Tuesday morning reported a 7% increase in
earnings for the third quarter, those earnings ($3.19 per share) just fell shy
of expectations ($3.22), and out the bottom went to the tune of a 4% loss,
taking IBM to $178.90 by the end of the day. Tech stocks, however, didn't
follow suit, with the Dow Jones U.S. Technology Index (DJUSTC) up more than 1%
and the Nasdaq-100 Technology Sector (NDXT) index up about 1.7%. Tech companies
making gains included Hewlett-Packard (NYSE: HPQ , +3.02%, $25.61), Dell
(NASDAQ: DELL , +2.5%, $16.37) and Google (NASDAQ: GOOG , +1.39%, $590.51).
Three Up Toll Brothers Inc. (NYSE: TOL ): Up 12.75% ($1.93) to $17.07. VMware
(NYSE: VMW ): Up 8.2% ($7.34) to $96.86. Host Hotels & Resorts (NYSE: HST ): Up
7.59% (91 cents) to $12.90. Three Down Crocs (NASDAQ: CROX ): Down 39.38%
($10.49) to $16.15. Hospira Inc. (NYSE: HSP ): Down 21.01% ($7.85) to $29.51.
Jazz Pharmaceuticals (NASDAQ: JAZZ ): Down 6.23% ($2.68) to $40.34. As of this
writing, Kyle Woodley did not own a position in any of the aforementioned
stocks.
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