Next, “daily momentum is now reaching oversold levels and DeMark exhaustion looks to be two-to-three days away from forming on AAPL stock on daily charts. He gives a number of reasons why Apple is unlikely to negatively impact the market in coming weeks.įirst, Apple has held up better than most tech stocks and even after a bad several days it still trades roughly 9% above its June lows of $129.04. The risk/reward should be favorable for bulls to buy dips on declines into next week,” says Newton in his latest note. Dollar takes a reprieve from its parabolic rally. “I continue to believe that October approaching should be a time when many various asset classes experience a change in trend, with equities and Treasuries turning higher (yields fall) while the U.S. Thursday’s market battering came after Bank of America downgraded Apple, and its stock slid to a near 3-month low.ĭon’t worry, says Mark Newton, head of technical strategy at Fundstrat, Apple can likely bottom next week – as another bounce in yields and the dollar pushes the broader equity market down – but then it will trend higher into mid-November. There are days when the market can shrug off weakness in the iPhone maker, but they are rare. Which commands a roughly 7% weighting in the S%P 500. Is that feasible without help from the big beasts, though? October enjoys an average gain of 1%, and according to Dow Jones Market Data, after a September loss of 7% or more the coming month sees a 1.8% advance. The Nasdaq 100 is on pace for its longest streak of quarterly declines in 20 years, yet investors are still bracing for more pain as the Federal Reserve aggressively raises interest rates and Wall Street analysts begin cutting profit estimates.Įstimates for 2023 profit growth for tech companies in the S&P 500 have declined about 6 percentage points since the start of 2022, compared with a drop of 4 percentage points for the broader index, according to data compiled by Bloomberg Intelligence.But if traders adhere to seasonality there is good news. While “Apple’s long-term prospects remain favorable,” BofA expects negative estimate revisions and valuation risks in the near-term. Pressure from a stronger dollar will only add to its woes, they said. With consumer spending expected to cool across regions, BofA analysts led by Wamsi Mohan said demand for Apple’s services has already slowed and product demand is likely to follow. The world’s most valuable company with a market value of nearly $2.3 trillion has now fallen about 20% in 2022, compared to a 32% decline for the Nasdaq 100. The social media giant’s shares have fallen 59% this year amid slowing user growth.Īpple has been treated as a haven for much of this year, outperforming fellow mega-caps and the broader tech gauge amid a steep selloff driven by recession fears. Meta Platforms sank 3.7% after Chief Executive Officer Mark Zuckerberg outlined plans to reduce headcount for the first time ever. There were just three gainers in the Nasdaq 100 Stock Index, which fell 2.9% and within spitting distance of its June 16 low. There were few places to hide on Thursday with investors dumping stocks as Federal Reserve officials continue to talk tough on raising interest rates in the central bank’s fight against inflation. The selloff erased roughly $120 billion from Apple’s market capitalization. The iPhone maker dropped 4.9% after Bank of America cut its rating to neutral from buy, warning of weaker consumer demand for its popular devices. shares buckled after a rare analyst downgrade exacerbated another wave of selling pressure that wiped out hundreds of billions of dollars in market value from the largest US technology stocks.
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