Qualcomm (QCOM) Suspends Guidance and Pays the Price

In trading today, markets were flat on slower than expected volume. The Dow fell a scant 0.02%, losing just 4.15 points to close out the trading day at 17,863.43. The Dow has been struggling to catch back up to its spring numbers, which had the market trading at over 18,000. The NASDAQ led the day in losses, falling 0.29%, or 14.74 points to close out the day at 5,127.74. The S&P 500 was down slightly as well, losing 2.38 points to close out the trading day down to 2,099.93.

Energy Minerals Leading Over Past 3 Months

Despite a big dip in trading at the end of August, the Energy Minerals sector has been performing surprisingly well.
The two segments of the sector that are leading the way in gains are coal and refining. These two particular segments have been going strong, in stark contrast to oil drillers which have been hit hard by falling oil prices.

The sector has wildly outperformed the rest of the marketplace in the past 3 months. In fact, it’s grown by over 9% in the past 90 days. That stands in contrast to what a lot of investors have been thinking, and only goes to show that hard numbers beat Wall Street buzz any day of the week.

Ralph Lauren (RL) Booms on Earnings

Clothing manufacturer Ralph Lauren (RL) posted a big earnings beat today. That’s been in line with the way that the Consumer Non-Durables sector has been overperforming the rest of the market. Shares of Ralph Lauren boomed today, after it was announced that the company would exceed guidance by over $23 million. In trading today, Ralph Lauren saw their stock prices gain over 14%. It gained 16.93 points and closed the day at $130.50 per share.

Qualcomm (QCOM) Suspends Guidance and Pays the Price

Even though Qualcomm (QCOM) exceeded earnings expectations, the company left a bad taste in traders mouths when it was announced that they would no longer offer forward-looking guidance figures. The company replaced traditional guidance numbers with a quarter-by-quarter peek at its figures, and investors revolted.

In trading today, Qualcomm lost over 15% of its value, dropping just over 9 points. Shares of Qualcomm closed the day at $51.07.
Published on Nov 5, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2016. Content published with author's permission.

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