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 Markets made modest moves to end the week. First, the scoreboard: - Dow: 15,543.7, -4.8, -0.0%
- S&P 500: 1,692.0, +2.7, +0.1%
- NASDAQ: 3,587.6, -23.6, -0.6%
And now, the top stories: - There were no major economic data or earnings announcements scheduled for today. But earnings announcements after yesterday's close caused some volatility.
- The big loser today was Microsoft, which fell a whopping 114% today. The software giant reported Q2 earnings of $0.59 per share, which missed expectations for $0.75. Among other things, the company took a massive $900 million writedown on its Surface RT tablets.
- Microsoft fell $4 per share which translated to a 31.0 point hit to the Dow Jones Industrial Average. In other words, Microsoft was responsible for the sell-off in the Dow.
- Search giant Google also reported disappointing earnings, however the margin of disappointment wasn't quite as wide as Microsoft's miss. The stock shed a little over 1.5% for the day.
- Chipotle Mexican Grill reported better-than-expected Q2 financial results. The burrito chain saw same-store sales jump 5.5% during the quarter. The stock jumped over 8.5% for the day.
- The City of Detroit filed for Chapter 9 bankruptcy Thursday afternoon. This is the largest city ever to file for bankruptcy.
- "The news that Detroit has applied for Chapter 9 bankruptcy could have big ramifications for the citizens of Detroit, particularly retired workers, and anyone invested in the City’s debt," said Capital Economics' Paul Dales. He also added that this was unlikely to be the first of a string of municipal bankruptcies because Detroit's problems are tied to the multi-decade decline of the auto industry. "The upshot is that we don’t expect the bankruptcy of Detroit to send many shockwaves though the financial markets or the wider economy. Nor do we expect it to prompt municipal bond spreads to break out of their recent range."
- Stocks continue to sit right near all-time highs. In fact, the S&P 500 managed to achieve a new all-time closing high. This ongoing bullish move could have something to do with fund inflows. From Bank of America Merrill Lynch: "Largest weekly inflow to US equity funds since June ‘08 (note market value of S&P500 index, adjusted for float, exceeded $15 trillion for the first time ever today) Huge $20bn global equity inflows versus $1bn out of bonds. "
- Raymond James strategist Jeff Saut thinks this is probably a good time to sell. "For the past two and a half months I have targeted tomorrow, July 19th, as the intermediate-top on both my quantitative timing and technical models," he said. "I have been raising cash for the past few weeks and I think this correction in the stock market will be roughly 10% to 12%."
- Don't Miss: 25 Reasons Why Detroit Is On The Verge Of An Epic Comeback »
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