The U.S. stock market indices remain largely unchanged despite a number of corporations updating their earnings. The Dow, NASDAQ, and S&P 500 all gained around a tenth of a percentage point.
A number of corporations, including Aetna, Coach, and CVS Health, reported their earnings. Economy-wise, the market awaits trade balance and ADP employment data scheduled to be released this Wednesday.
Greece expects its bailout deal to be finalized by August 18th. However, the sell-off of Greek banking stocks continued. In China, the stock market bounced up, with the Shanghai Composite Index surging 3.7%. Oil reversed yesterday’s loss, rebounding 2.2% to $46.18 on Tuesday morning.
Top Technology Stories
Apple Loses Top Spot in China’s Smart Phone Market
According to a research report by Canalys, Apple Inc. (NASDAQ/AAPL)is no longer the leader in China’s smartphone market. The report suggests that in the second quarter of 2015, Xiaomi was the largest smartphone vendor in China, capturing 15.9% of the market. Huawei claimed second place with 15.7% market share. Apple fell to third place in the quarter. (Source: Canalys, August 3, 2015.)
First 3D-Printed Pill Approved by the FDA
The U.S. Food and Drug Administration (FDA) approved the first 3D-printed pill—Spritam, an epilepsy medicine. The new drug would be used to control seizures caused by epilepsy. It was developed by Aprecia Pharmaceuticals.
The FDA has previously approved 3D-printed medical devices, including prosthetics. This would be the first time that the FDA approves a 3D-printed product for use inside the human body.
Bus Drivers for Apple, Yahoo, eBay Vote to Raise Pay
Shuttle bus drivers for several Bay area tech companies voted for a pay increase and more benefits. The proposed three-year contract would raise the hourly wage to between $25.00 and $27.50. Currently, the drivers are getting between $17.00 and $21.00 per hour.
The shuttle bus drivers unionized six months ago and are employed by Compass Transportation. They serve seven companies including Apple, Yahoo, eBay, Zynga, Genentech, Amtrack, and Evernote.
Top Stocks to Watch
Apple Inc. (NASDAQ/AAPL)
On Monday, Apple Inc. closed below its 200-day moving average, a key support level followed by technical traders. Moreover, its stock price dropped another 2.8% to $115.08 on Tuesday morning. The company’s stock price has been declining since its earnings report on July 21st.
Aetna Inc. (NSYE/AET)
Managed healthcare company Aetna reported its quarterly earnings on Tuesday morning. Both top and bottom lines improved year-over-year. Strong growth in Aetna’s government business, Medicare and Medicaid lines, helped to produce the solid results for the quarter. The company also raised guidance for full-year 2015 from the previous $7.20-$7.40 per share to at least $7.40 per share. Aetna’s stock price edged up 1.9% in early trading on Tuesday.
CVS Health Corporation (NYSE/CVS)
CVS Health’s stock price is down 3.9% on Tuesday morning. The company reported better-than-expected earnings for the second quarter of 2015. Just like Aetna, CVS Health’s solid results come from growth in its government business. The problem is, its earnings guidance for the third quarter was below analysts’ expectations, and investors don’t seem to like that.
Coach, Inc. (NYSE/COH)
Shares of Coach are trading 5.5% higher pre-market on Tuesday. The company just released its earnings, with both sales and profit declining year-over-year. However, the results were better than expectations and the company issued upbeat guidance for the new fiscal year.
eLong Inc. (NASDAQ/LONG)
China-based Tencent Holdings Ltd. offered to buy Chinese online travel company eLong Inc. at $18.00 per share, a 26.6% premium on Monday’s closing price. Tencent was already a shareholder of the company and now seeks to make eLong private. In early trading on Tuesday, eLong stock surged 16.2% to $16.53 per share.