Daily Equity Prices and Market Overview 26.10.2012

U.S. equities remained flat today, after data showed the economy grew more than expected, making investors momentarily forget recent concerns about a disappointing earnings season so far. U.S. gross domestic product rose at a 2 percent annual rate according to figures of the Commerce Department. The general consensus among economists called for a 1.9 percent gain.

European equities gained today, after having had the worst week in a month held down by a gloomy global outlook and worse-than-expected corporate earnings. Weaker business data and rising unemployment in Germany, until now a premise for growth in the euro zone, added to the gloom, with economists stating limited growth opportunities for the region in the third quarter. The euro zone economy stagnated in the first quarter and contracted 0.2 percent in the second quarter of the year. According to economists the third quarter is expected to show another contraction.

The DJ30 closed at 13,107.21, gaining 3.53 points (0.03%), SPX500 closed at 1,411.94 declining 1.03 points (-0.07%) and the NASDAQ100 closed at 2,665.83, gaining 8.17 points (0.31%) in today’s trading.

The DAX30 closed at 7,231.85, gaining 31.61 points (0.44%), FTSE100 closed at 5,806.71, gaining 1.66 points (0.03%) and CAC40 closed at 3,435.09, gaining 23.56 points (0.69%).

Apple Inc. (AAPL) reported fourth quarter EPS of $8.67, which was below consensus of $8.75 and above the company’s original estimate of $7.65. Revenue came in at $36.0 billion. Gross margin of 40% was below consensus estimates of 40.8%, which might have come from product transitions (possible price protection and air freight), according to a Barclay analyst. iPhone shipments were 26.9 million, above consensus of 25.4 million. iPad shipments were 14.0 million, below consensus estimates of 17.3 million. According to a Barclay analyst, Apple Inc. (AAPL) lowered channel inventory ahead of new products and the fourth quarter might show big improvements taking into account the new launch of the iPad mini and iPhone 5.

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