Sunday, January 25, 2015

Uh-oh! Investors face more uncertainty

S&P 500 11:40am

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NEW YORK (CNNMoney) More uncertainty. That's what investors will be faced with for the next few months. And we all know how much the market hates uncertainty.

The biggest questions for Wall Street?

When will the Federal Reserve finally begin to cut back on its $85 billion a month bond-buying program?

Will the U.S. government shut down on October 1st? Will the U.S. government default on its debt?

And what will corporate earnings look like next month?

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Investors have been able to breathe a sigh of relief lately since two big concerns are no longer as pressing. The threat of a U.S. strike in Syria no longer appears imminent. And the Fed pleasantly surprised the market Wednesday by deciding to hold off on tapering its quantitative easing program.

The S&P 500 and Dow Jones Industrial Average both rose to record highs this week.

But the S&P, Dow, and Nasdaq barely budged Friday.

iPhone fumbles? The lines may have been long for Apple (AAPL, Fortune 500)'s newest iPhones, but investors aren't racing to buy up Apple's stock. It's down more than 33% over the past year, and as sales for the latest iteration of the iPhone kicked off in stores in the U.S., China and seven other countries Friday, Apple's stock moved up just slightly. Investors are hoping the phones are a hit.

One trader on StockTwits thinks the long lines might actually mean that there's room for the stock to run: "$AAPL Being accumulated like Chess rivals pieces by Kasparov, (despite mkt sell off)," said Bizfinder But another trader isn't so sure: "$AAPL Just gonna assume that a 'positive surprise' is not possible now and that the good news has been baked in for the weekend," wrote jarym.

Darden Restaurants (DRI, Fortune 500), which operates the Olive Garden and Red Lobster chains, reported weaker-than-expected sales and profits. Darden also said it's planning workforce reductions. The stock slipped more than 5%. One trader suggested this could be a bad sign for the economy. Consumers may be pulling back.

"Olive Garden used to be the go-to chain for the middle class. Wh! at's happened? Red Lobster SSS also down 5.2%. No splurging. $DRI," said TraceyRyniec.

The all-time high club: A slew of companies hit all-time highs, including Netflix (NFLX), Tesla (TSLA), Amazon (AMZN, Fortune 500), and Facebook (FB).

Priceline's (PCLN) stock continued to rise as well. It appeared set to finish above $1,000 a share for the second straight day..

Two IPOs off like rockets: It was a great day for companies with incendiary themed names to debut.

Shares of ad buying platform Rocket Fuel (FUEL) nearly doubled on their first day of trading while cybersecurity firm FireEye's (FEYE) shares more than doubled.

European markets and Asian markets were mixed. To top of page

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