When the market tumbled on Wednesday, 14th January, 2015, analysts were out searching for a reason to explain the sharp downslide. Eventually it was attributed to disappointing earnings by companies like JP Morgan, Apple Inc (NASDAQ:AAPL) being in trouble and economic growth becoming sluggish the world over. CNBC covered the same in their studio with Art Cashin, Director of UBS Floor Operations, and he could not help but point out the vulnerability of the market.
Leading the downward slide was JPMorgan Chase (JPM) wherein a dismal fourth quarter earnings report caused the share value of the stock to tumble by more than 4%. As against the profit of $5.28 billion reported by the company last year at the same time, the figures declared now in 2015 were $4.93 billion, meaning a substantial decrease.
In addition to stock prices, a downward economy also pulled down the yield on 10-year Treasury note, thus causing it to reduce to 1.86% as opposed to 2.17% wherein it was poised during December, 2014. Most affected was the commodities market and owing to slowing growth in Europe, Japan and markets in emerging countries, growth target set by the World Bank has been revised from an estimated 3.4% to just about 3%. Copper stocks reached their lowest point in 6 years and in general triggered a downward momentum of mining sector.
Tech stocks had their share of worries too with companies like Intel and Microsoft reporting negative figures and Apple Inc (NASDAQ:AAPL) being in trouble with its revenue. Global brands like Apple Inc (NASDAQ:AAPL) notwithstanding, viability of tech stocks needs to be judged on the basis of their ability to pay dividend and Garmin Limited emerged as a name which has been consistent on this front.
Regardless of predictions, Apple Inc (NASDAQ:AAPL) once again dominated the stage at CES, 2015, and projected itself as being a lot more positive and lucrative than its counterparts, Microsoft and Google.
This article has been written by Vinita Basu.
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