Stocks and a slew of other “risk assets” bounced on Wednesday after Apple smashed estimates. As earnings and economic data continues to be released in droves, it is paramount that we not only pay attention to the actual numbers but how the stocks (and major averages) react to the numbers. This allows us to see how the market participants are “voting” and helps us filter out the noise and focus on what matters most: price action. Since the beginning of April, the action has been less than stellar. We find it somewhat encouraging to see all the major averages jump back above their respective 50 DMA lines in the wake of Apple’s blow-out quarter.

Apple’s Earnings Top Estimates, Durable Goods Disappoint, and Fed Reiterates Recent Stance:

Stocks and a slew of risk assets opened higher on Wednesday as investors looked passed a disappointing durable goods number and focused on a much stronger-than-expected earnings report from Apple Inc. (AAPL). The Commerce Department said total durable goods orders fell by -4.2% during March which missed the Street’s estimate for a decline of -1.7%. Excluding transportation items, durable goods orders fell by -1.1%, which still missed the Street’s estimates for a gain of +0.5%. The Fed concluded its two-day meeting, held rates steady, and largely reiterated their recent data-dependent stance regarding future policy. For months, the U.S. Fed has taken a “wait-and-see” approach for handling policy and whether or not to initiate another round of QE (i.e. stimulus).

Market Outlook- In A Correction