12:40pm (EST)
Futures were fluttering for much of the morning which lead to a mixed open and the action remained that way for the first few hours of trading. However, as we hit the turn, the major indexes are down nearly 0.5%, on average, as the bears look to test the next wave of support.
Third-quarter earnings season is officially underway and it too has gotten off to a rocky start. This week has some heavy hitters reporting and we will be interested in Friday’s action as a couple of Financial firms announce their numbers.
Economic news was back in focus as Wholesale Inventories were up 0.5% versus estimates for a pop of 0.4%. Wholesale Sales rebounded as well and were up 0.9% following 3-straight monthly declines. At 2pm, the Fed’s Beige Book and the Treasury Budget will be released.
Apple (AAPL, $639.85, up $4) is rebounding today and we said a few weeks ago today could be the day they announce the iPad mini. Of course, the talking heads have caught wind of our prediction and said if Apple does announce the news, it should come shortly and today would be the day. Thanks for the jinx.
We checked Apple’s website before we went to press and there is no mention of an iPad mini. Shares are rebounding and pushing $650 again. Remember, if the stock breaks $650, look at the Weekly call options for a quick 24 hour trade.
As far as the market, the bears are in control. The Dow is down 94 points to 13,379 while the S&P is lower by a 8 points to 1,433. The Nasdaq is declining 13 points to 3,051. These are the exact levels we have been saying to watch…
We have a lot to cover so let’s get on it. Subscribers, check the Members Area for the updates.