The markets closed out the day lower following weakness that was building up prior to the announcement that the Federal Reserve would leave rates unchanged. The Dow 30 closed lower on the day by 164, the S&P 500 sold off 22 and the Nasdaq lost 45 with the bulk of the days losses coming in the last hour of the day.
Transports continued to pullback towards their technical support levels along with the 200 day moving average today. The sector has pulled back recently as earnings excitement in the rails has cooled along with weakness in UPS (UPS ) continue to help the bullish pullback of the sector.
Technology (XLK ) and (VGT ) enjoyed strong moves to start the day which pushed both to new highs thanks to Apple's glowing earnings report. The VGT is made up of 15% Apple and the XLK is about 16% weighting which was the primary reason for the move to new highs today.
Apple(AAPL ) was the big focus today as the company reported a textbook earnings for the prior quarter. Earnings beat by 10 cents a share along with revenue which beat by more than $500 million. The company showed an increase of their services revenue by 16% and guided higher by more than $1 billion as they expect gross margins to be close to 40%. They also raised their dividend to 77 cents and added $75 billion to their share buyback program.
Advanced Micro Devices (AMD ) shares gapped higher today as the company announced a beat on earnings along with higher earnings. Both earnings and revenue just beat expectations but the company showed margins increase by 5% which helped given the slowdown in the chip space recently. Shares are higher by over 50% in the year.
CVS Health (CVS ) shares got a boost off lows today as the company announced an earnings beat by 12 cents. Revenue also beat Wall Street's expectations and the company raised their guidance for the year thanks mostly to the success off the recent buyout of Aetna. Despite this seemingly positive report shares are still lower on the year by over 10%.