Your Wednesday Market Blip 1/27/16

Your Wednesday Market Blip 1/27/16

Markets were on a wild ride today before getting bucked off to finish the day down 222 at 15,944. Trading volume was heavier.
The Federal Reserve issued a dovish policy statement saying they will hold rates steady for now even though the course set last year is still in place. The press release noted that they are monitoring global events and that while economic growth is slow, labor conditions in the US are improving. They also spoke of inflation saying that low oil prices are temporarily keeping inflation under control but expect that oil prices could eventually rise and push inflation back to a 2% level.
Apple reported earnings yesterday and the numbers really show how currency affects the top line of companies that sell product overseas. The gurus considered Apples report to be “not as bad as feared” with earnings coming in better than expected at plus 7.2% while revenue was weaker than expected rising by 1.7%. CEO Tim Cook mentioned on the call that if global currency values were “normal” Apple’s revenue would have been up 8% but that with things like a falling Canadian dollar, a 50% decline in the ruble, 40% decline in the Brazilian real plus a falling euro, yen and yuan, international results were under pressure. He called the state of global currency “unprecedented” or in Apples case …”iPrecidented”.
Boeing reported earnings and while they beat estimates the forward guidance issued by management was below estimates and surprised the gurus. Earnings for the quarter came in with a 31% drop while revenue was off by 0.4%. Going forward however Boeing sees commercial aircraft deliveries at 740 to 745 down from 762 in 2015.
One sector that is showing strength is gold. Shares of gold stocks are moving off multiyear lows as of late and some, like Bob Dickey at RBC Wealth, say the technical picture for gold is looking up. Gold today traded up $7 per ounce to $1,127. WTI crude oil was up 1.7% to $32 per barrel thanks to cold weather drawdowns of stockpiles.