Apple's (Nasdaq: AAPL)
disappointing earnings yesterday were the latest in what has
become a disturbing trend this earnings season.
While the world's largest company didn't technically fall
short of earnings estimates, its iPhone sales underwhelmed. The
51 million iPhones Apple sold over the holidays, while a record,
were still 4 million shy of consensus analyst expectations. That
was enough to send Apple shares plummeting after hours. The stock
opened Tuesday trading down more than 8%, and is threatening to
dip below $500 a share for the first time since October.
AAPL isn't the only stock that has suffered after reporting Q4
earnings over the last month.
, only 68% of S&P 500 companies have beaten earnings
expectations so far this earnings season. That's below the
one-year average of 71% and even further below the four-year
average of 73%.
Only about a quarter of the S&P companies have reported
earnings thus far, so it's still too early to make any sweeping
judgments. But holiday earnings aren't exactly off to a booming
start. And right now, it's hurting the stock market.
reported lackluster earnings on Jan. 9, stocks have fallen more
than 3%. That's the biggest drop-off on Wall Street since late
Of course, there have been a number of mini pullbacks over the
past year, and each time stocks have bounced back and risen
higher than ever before. Whether that happens this time may
depend on if earnings can improve over the next few weeks.
This week alone could be rather revealing.
was merely the first of several blue-chip stocks set to report Q4
results. Four of the 10 richest U.S. companies by market cap
report earnings this week, including the three largest
Here's what's on tap the rest of the week:
Yahoo! (Nasdaq: YHOO)
Amazon (Nasdaq: AMZN)
Conoco Phillips (
United Parcel Service (UPS)
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