- In Trade Chatter
- Last Updated: 14 January 2013
- By LA Little
Friday came and went without much ado. The S&P 500 kept building for the breakout and the rest of the market remained subdued. Earnings are set to start up with a big more vengeance this week especially in the financial arena then the three weeks onslaught occcurs where the majority of the index reports the week following. The market has had a big pop to start the year and is now sitting near mult-year highs. It won't take a lot to get over it. There's just one problem and that is the company that drove it to these levels - Apple Inc. Reports are out that they are cutting back dramatically on the display parts for iPhone and that has put a chill on the stock sending it down $20 to start the day at $500. Apple still represents 20% of the index so a dead-in-the-water Apple makes it extremely difficult to get the lift need to break stocks higher. Once more the market looks to be held hostage by weakness in the largest component of the index and that stock will have to turn for this market to do so.
Elsewhere it's a different story with general strength in most areas. Short term a pull back is always possible; especially now with this mornings Apple woes but it likely is a buying opportunity if it happens. Earnings will make or break this latest move and it won't be just one company but many. Right now the worry is all about one though and that looks to continue for another nine days.