“Today’s stronger than expected October employment report was a mixed bag for stocks,” said Alec Young, managing director of global markets research at FTSE Russell. “On the positive side, strong job growth will allay fears of slowing economic growth. However, with wages up 3.1 percent year over year … it will be more difficult for the Fed to slow its rate hiking campaign.”
Meanwhile, tech giant Apple dragged down stocks after reporting its fiscal fourth quarter results on Thursday. Analyst reactions were mixed as the iPhone manufacturer beat earnings expectations, but issued a weak guidance moving forward, causing the stock to fall by 7% in after hours trading.
Today, shares of Apple were down another 7% as of 11:10 a.m. ET.
“With slightly weaker guidance for the Dec. quarter and the company’s indication that it will provide less product level disclosure (no units or ASP), some investors will assume iPhone units are trending poorly,” said investment firm Piper Jaffray. “With increasing disclosure coming for services (gross margin), we believe Apple is simply trying to change the focus towards the overall installed base and services revenue per user. Maintain OW, PT remains $250.”
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