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Stocks settle mixed, Apple beats on earnings and revenue

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Stocks settle mixed, Apple beats on earnings and revenue

In the face of continued solid earnings reports, the US stock market has continued to rally, pushing to new highs over the past week.  On Monday, DuPont released better than expected earnings and put a strong spill on their forward looking guidance.  All eyes are on Apple (NASDAQ:AAPL) as they release earnings after the bell on Tuesday. Analysts had expect the tech major to report another drop in earnings along with flat sales, as the iPhone 5 faces stronger competition from newer smartphones.  Additionally, United Technologies Corp. and Valero Energy Corp. reported earnings ahead of the opening bell.

After the bell on Monday and prior to trading on Tuesday shares of Netflix Inc. (NASDAQ:NFLX) 5.3% as the online-entertainment firm reported that subscriber growth fell below estimates in the second quarter, although earnings surged compared with the same period a year ago.

Stocks have recently been led higher by financials which have reported better than expected earnings across the board, and have guided higher.

The XLF (NYSE:XLF) Financial ETF broke out and continues to move higher with strong momentum.  The MACD is at its highest level of the year and pointing to higher prices.  Once warning sign on the financials is the RSI (relative strength index) which is printing near 71, above the 70 overbought trigger level as of Monday evening.

After the closing bell technology bellwether Apple released better than expected earnings and revenue numbers.  iPhone shipments came in at 35.3 billion compared to the 35.2 billion expected by analysts.  With completion from Samsung, it is impressive that the iPhone beat on sales. Earnings came in at 7.47 compared to expectations of 7.35.   The company reported worse than expected iPad sales.  Apple stock was up as much as $18 dollar per share in the afterhours session.

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