Stocks were all over the place but ended the session lower for a second straight day, and Apple shares tumbled towards the lowest levels of the year.
First, the scoreboard:
- Dow Jones: 17,545.55, -52.65, (-0.30%)
- S&P 500: 2,093.34, -4.70, (-0.22%)
- Nasdaq: 5,107.18, -8.20, (-0.16%)
And now, the top stories on Tuesday:
- Apple shares fell by up to 4% to as low as $US113.25, the weakest since January. The stock is down 11% since July 20, the day before the quarterly earnings report was released. Apple’s results showed weaker-than-expected iPhone sales, although the company topped estimates for profits and revenues. Trading volume surged today, with as many as 110 million shares changing hands.
- Netflix hit an all-time high. The stock spiked 9% to as high as $US122.79. Today, analysts at Guggenheim Securities initiated coverage on the stock with a “Buy” rating and a price target of $US160. “The stock’s performance has been very strong over the past two years, yet at $US48 billion in market capitalisation, we still see a significant gap between equity value and ultimate intrinsic value of the service,” they wrote.
- Economic data was light. Factory orders rose 1.8% in June, matching forecasts and rebounding from a drop in the previous two months. The strong dollar, lower energy prices, and port disruptions have slowed new orders this year.
- Greece expects to have a new bailout deal in two weeks, a government spokesperson said Tuesday. According to Reuters, the drafting of the accord with international lenders starts tomorrow and should be completed by August 18 if the terms agreed at the European Union’s summit are met. The bailout is worth 86 billion euros.
- Shares of AAC Holdings today suffered their worst plunge ever. Last Wednesday, the company disclosed that its former president has been indicted on a second-degree murder charge. The case relates to the death of a patient in 2010 at American Addiction Centres, to which AAC is a parent company. A civil case was confidentially settled, but the indictment, returned by a grand jury, was unsealed last week. Shares plunged 53% to as low as $US15.09.