This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: Hitting Pause

Meantime, it wasn't all that surprising to see Apple (AAPL - Get Report) shares shrug off a rare downgrade on Monday, but it was worth noting that the call made by BTIG Research is really looking further out, raising questions about whether the company's iPhone business could be hurt by wireless companies pushing back on subsidizing upgrades as 2012 progresses.

The firm argues that AT&T (T), Apple's biggest customer, and the other wireless providers have to take this step to protect margins and theorizes a repeat of Apple's one hiccup last year could be in the offing.

"We expect quarterly upgrade rates to contract further in calendar Q2 (Apple's Fiscal Q3) based on typical wireless seasonal trends and likely increased speculation on the anticipation of a new iPhone in the second half of the year," wrote BTIG analyst Walter Piecyk. "Recall that investors were surprised by Apple's Fiscal Q3 results last year because of the slowdown in iPhone sales ahead of the expected launch of the iPhone 4S. We also do not expect a material broadening of market launches for the product like what was seen in the first calendar quarter."

It's difficult to overstate Apple's importance to the broad market at this point. For example, the blended earnings growth rate for the S&P 500 currently sits at just 3.2% for the first quarter, according to Thomson Reuters, but that estimate drops down to 1.8% if Apple is removed from the equation.

As for Tuesday's scheduled news, Alcoa (AA - Get Report) is the big name on the earnings docket Tuesday. The aluminum producer is traditionally the first Dow component to report its results each quarter, and it's slated to reveal how it fared in the first three months of 2012 after Tuesday's closing bell.

The average estimate of analysts polled by Thomson Reuters is for a loss of 4 cents a share in the first quarter on revenue of $5.77 billion. An in-line performance would represent the company's second straight quarter in the red as Alcoa struggles with lower pricing and the impact of Europe's sovereign debt woes on demand.
3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
AA $7.69 0.00%
HLIT $3.19 0.00%
SVU $4.21 0.00%
VVUS $1.02 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs