Stocks close on their lows, Blackberry disappoints
Stocks in the US were mixed at the open as traders absorbed the hangover of the risk on rally associated with the Feds non-action on their bond purchase program. The Fed believe the current economic outlook does not warrant a change in current monetary policy and given the Fed reduction in their economic forecast it would be difficult for the Fed to explain a hawkish stance to monetary policy.
The Nasdaq lagged other major indices earlier in the week, but turned the corner when Apple (NASDAQ:AAPL) stock started to climb. After tumbling following its iPhone launch event and general 5C pricing disappointment, Apple has recovered nearly half its losses. In spite of reports of limited 5S supplies, there have been plenty of huge lines at Apple Stores. Apple’s U.S. online store indicates a 7-10 business day shipping wait time 5S models.
In other corporate news smartphone maker Blackberry (NASDAQ:BBRY) fell nearly 17%. Today the company reported preliminary Q2 sales of $1.6 billion, of which approximately 50% is expected to be service revenue. During Q2, approximately 5.9 million BlackBerry smartphones were sold through to end customers. The company expects to report a quarterly loss in the range of $250 million to $265 million, or $0.47 to $0.51 per diluted share, excluding special inventory and restructuring provisions.
Stocks ending the trading session on their lows, retracing most of the gains seen on Wednesday. Support is seen near the 10-day moving average, while resistance is seen near the recent highs at 1730.
The RSI (relative strength index) moved lower after printing above 70 on Wednesday reflecting an overbought condition. Momentum on the S&P 500 index is still positive, but the trajectory of the MACD is flattening which could be a sign of a correction.
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