New York City, New York – (StockNewsDesk) – 10/21/2014 — The S&P 500 has gained for the 4th consecutive day on the back of robust quarterly results of Apple and better than expected housing data. Last week, a series of domestic data released by the government shrugged off wariness and ignited optimism among investors. Another reason supporting today’s rally is the Chinese data. Chinese growth, though it’s at its slowest pace since the slowdown of 2009, is slightly above the market expectations. The annualized GDP of China came in at 7.3% compared to expectations of 7.2%.
Home sales data played the role of an optimism booster today. Futures of the broader indices were trading near to 1% before the markets opened. Housing data pushed the indices on the other side of 1%. Apple’s quarterly figures eclipsed the Street’s expectations by a huge margin. The revenue and the profits of the company were mainly boosted by iPhone and Mac sales. Apple sold 39.2 million iPhones compared to 33.8 million on a year over year basis. On the other hand, sales of Mac increased to 5.52 million compared to 4.9 million. The company reported a profit of $1.42 a share, compared to the estimates of $1.30 a share.
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Despite the indices advancing more than 2%, Coca-Cola has declined nearly 4%. This is because the company has posted profits below the Street’s expectations. The net income of the company declined to $2.1 billion or 48 cents a share, compared with last year’s figure of $2.4 billion or 54 cents a share. The revenue of the company also declined to $11.97 billion, compared to Street’s expectations of $12.12 billion. Another bellwether company, McDonald’s, reported lower than expected earnings as a result of which the share price of the company dropped. The profits of the company declined to $1.07 billion from $1.52 billion. The revenue of the company declined 4.6% to $6.99 billion, compared to expectations of $7.19 billion. Shares of the company declined nearly 1% owing to these figures.
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Crude oil has been in a declining mode for the past few weeks. However, today the prices have managed to increase nearly 1%. The crude oil prices increased past $86 and was trading at $86.17 a barrel. The slowing in Chinese’s economic growth indicates a global slowdown. A fall in the crude oil prices directly correlate with the economic growth.
This week, company results have largely influenced S&P 500 and the Nasdaq. This is why S&P 500 and Nasdaq have advanced more than 4% in a week, but the Dow Jones has not surpassed the 17,000 level barrier.
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