Downbeat Sales for Apple, Upsides for SPY and Housing

SPY’s bottom stocks following the Fed’s decision not to hike

Among the stocks at the bottom of the SPDR S&P 500 ETF (SPY) on January 27 were Total System Services (TSS), Apple (AAPL), and Red Hat (RHT). These stocks yielded -14.7%, -6.6%, and -4.2%, respectively, on the day.

The graph below presents the stock price movement of tech stocks from Apple (AAPL) and Red Hat (RHT) since December 2015 (though these stocks belong to different industries of the same sector).
Downbeat Sales for Apple, Upsides for SPY and Housing

Forecasts of decline

Stocks of Apple (AAPL) suffered due to the company’s forecast of a fall in its revenue for the current quarterly period. The company also confirmed a slowdown in its sales and in its shipments of iPhones the day before, on January 26. The trailing one-year return of AAPL was -14.4%.

On the other hand, the trading volume of AAPL soared to more than 132 million stocks on Wednesday from nearly 75.1 million stocks on the previous day, after the weak sales forecast. The stock has 44 “buy” recommendations, six “hold” recommendations, and one “sell” recommendation. S&P has rated the company’s stock as “AA+” with a “stable” outlook. The stock traded at $93.42 on the day, which was below the stock’s moving averages. Its 100-day, 50-day, and 20-day moving averages are $112, $109, and $101, respectively.

Meanwhile, Red Hat (RHT) was downgraded by the analysts at Bank of America from a “buy” to a “neutral” rating. The above events led to the plunge in the stock prices of AAPL and RHT on Wednesday, January 27.

SPY’s top stocks that same day

Stocks at the top of the SPDR S&P 500 ETF (SPY) on January 27 were Freeport-Mcmoran (FCX), Consol Energy (CNX), and Nabors Industries (NBR). These stocks gained 10.7%, 7.5%, and 6.2%, respectively, on the day.

Freeport-Mcmoran (FCX) took a lift owing to the rise in copper commodity price on the day. The company also assured to reduce its debt load exceeding $20 billion in its third quarter.

An upbeat outlook for housing

On the flip side, the new home sales level for December 2015 went up sharply to 544,000 from the prior revised reading of 491,000. The reading assured an upbeat outlook for the housing sector.

For more on US equities, visit Market Realist’s US Equity ETFs page.