Cinemark Falls After AMC Bombs

Shares of Cinemark (CNK) are down sharply today but it’s not because of anything they did. It was AMC, a competitor, who bombed their earnings report.

Technically, it was a preview of the earnings report but the details are downright ugly. Still, I don’t see why AMC’s troubles will spillover to Cinemark. Wall Street likes to think that if one ball-bearing company has a problem, all ball-bearing companies must have the same problem. Cinemark reports earnings on Friday. Wall Street expects 45 cents per share.

This morning’s ADP report said the economy created 178,000 payroll jobs last month. That was a tiny bit below expectations. The government’s jobs report will come out Friday morning.

The Dow cracked 22,000 this morning thanks to an impressive earnings report from Apple. Last week on CNBC, I said that Apple would beat earnings expectations. I was right, but I was more cautious on the stock.

I thought investors should steer clear of Apple until there’s a better understanding of the impact of the new iPhone. I realize this runs the chance of missing out on big profits if the iPhone is a hit, but I think it’s the safer move.

Apple has been as high as $159.75 per share this morning. That gives them a market cap of $832 billion. The market value will crack $1 trillion when the stock gets near $192 per share.

Apple now has more than $261 billion in cash. Of course, much of this rests outside the United States. Yesterday, I tweeted a fact to put it in perspective, and it seems to have caught on.

Posted by on August 2nd, 2017 at 10:47 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.