|Bid||161.17 x 200|
|Ask||161.29 x 100|
|Day's Range||160.86 - 167.12|
|52 Week Range||150.13 - 187.53|
|PE Ratio (TTM)||9.08|
|Beta (3Y Monthly)||1.18|
|Expense Ratio (net)||0.20%|
As of December 7 at 12:15 PM EST, Apple stock was down 2.4% from its previous day’s closing price, extending the losses it had seen in the last couple of sessions. On a quarter-to-date basis, AAPL has fallen 22.6% compared to the 10.3% fall in the NASDAQ Composite Index (QQQ) in the fourth quarter so far. Earlier today, popular investment company Morgan Stanley revised its price target on Apple stock to $236 from $253, CNBC reported.
Conclusion: My point is this: When I hear people say they are happy to pay 12.5 times for Apple, you have to put that into context of WHEN Apple will start reaccelerating its growth to make that valuation is worth it. Buying too far ahead of an earnings/cyclical trough is very dangerous, UNLESS the price gives you some major cover by just getting too cheap to ignore. But beware that gulf before growth starts again. Time usually should be your guide.
On December 7, Tesla (TSLA) stock continues to swim against the current for the second consecutive day. At 11:10 AM EST, the stock rose 2.5%—compared to the S&P 500’s (SPY) 1.0% losses. The NASDAQ Composite Index and the Dow Jones Industrial Average fell 1.5% and 1.2%, respectively.
Yes there is still a deceleration in earnings form 23% growth in calendar 2018 to 12% in 2019. However, the January quarter looks to be the bottom. We go from 27% earnings growth in October all the way down to 3% in January. But absent a global meltdown, that looks to be the bottom. After that you get accelerating earnings growth: +3% to +9% to +16% to +10% and overall 12% earnings growth for 2019. And right now you are only paying 9.8 times, plus you get a 4.6% dividend yield. And they have a nice 5G equipment cycle ramping throughout the year. The stock has underperformed the Nasdaq (QQQ) this year, down about 10% YTD. I am not saying all-in, this sell-off is vicious. But Broadcom now screens as decent risk/reward situation going into 2019 – only the 3rd SOXX stock to do that so far.
The US jobs report for November was released today. The job additions came in at 155,000 as compared to consensus expectations of 198,000. While job additions in manufacturing remained strong at 27,000, construction net adds declined to 5,000.
Apple’s (AAPL) stock rose 17% in 2016 and gained 48% in 2017. Apple stock has gained 120% in the last five years and 1,250% in the last ten years. Of the 38 analysts tracking Apple, 32 have recommended “buys,” six have recommended “holds,” and none have recommended “sells” on its stock.
Following Monday’s technical reaction in Micron (NASDAQ:MU) there is additional bullish ammunition in the battle for higher prices in MU stock and reasons for investors to go long shares today. The limited truce could turn into a potentially very large support for technology companies like MU stock, which are so reliant on diplomatic business relations between the U.S. and China. MU stock gained 3.81% on the session and more than double the 1.75% the tech-heavy Invesco Trust NASDAQ 100 (NYSEARCA:QQQ).
Today, the broader-market sell-off continues, seeming to intensify. In October, the S&P 500 Index (SPY) tanked 6.9% in a sell-off triggered by investor concerns over rising interest rates, slowing global economic growth, and the US–China trade war. However, the market recovered somewhat in November after Fed Chairman Jerome Powell’s dovish comments in a speech. US equities rallied sharply after news of a US–China trade truce earlier this month. ...
It has gotten downright ugly out there. The Standard & Poor's 500-stock index has been dancing in and out of correction territory and is down about 8% from its all-time highs at time of writing. It's also barely in positive territory in 2018. It doesn't get any prettier when you look at other corners of the market. The tech-heavy Nasdaq is up a meager 4% in 2018, but of more concern is that it's down 12% from its late-summer highs, putting it well into official correction territory. And when you drill down to the major players that have led the bull market in tech shares for years - the "FAANG" stocks Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Google parent Alphabet (GOOGL) - it's a bona fide bloodbath. Facebook has lost more than a third of its value from its highs, and Netflix isn't far behind. Apple has been sliced by a quarter. Amazon has shed nearly 20% of its value, as has Alphabet. The picture doesn't get prettier overseas. Chinese stocks are in an official bear market, and the iShares MSCI EAFE ETF (EFA), a proxy for developed international stocks, is flirting with bear-market territory. We know it's ugly out there; the question is why. The first-quarter selloff shook out many of the less committed holders, meaning remaining investors should have been a little harder to rattle. And earnings still look strong, as does the health of the economy. So, what gives? It's rarely just one thing. Selloffs almost always have multiple, sometimes overlapping, drivers. Here are seven of those reasons - including which ones could threaten the market further. SEE ALSO: 7 Stocks Wall Street Is Souring on Right Now
The non-farm payrolls for October in the US (IVV) (QQQ) were 250,000 in October, which far outpaced economists’ consensus of 190,000. The strong job additions came after lackluster September additions of 134,000, which were further revised downward to 118,000 in October. After last month’s strong job additions, economists are expecting payrolls to come in at 200,000, which is below October’s payrolls but still healthy.
On December 6, China’s largest used car e-commerce platform, Uxin (UXIN), announced its strategic partnership with Alibaba Group’s (BABA) Taobao. According to UXIN’s press release, it “entered into a strategic partnership to foster further growth and expand service opportunities for used car e-commerce in China.”
Hewlett Packard Enterprise (HPE) stock rose 60% in 2016 and fell 15% in 2017. Since the start of 2018, it’s risen ~6.7%, indicating absolute gains of 39% since the start of 2016.
On December 4, Apple (AAPL) fell 4.4% after President Trump said in a tweet that “I am a Tariff Man.” The tweet triggered a wide sell-off in the market. The S&P 500 benchmark (SPY) fell 3.2% on December 4, while the NASDAQ Composite Index (QQQ) and the Dow Jones Industrial Average fell 3.8% and 3.1%, respectively. Microsoft (MSFT), IBM (IBM), and Alphabet (GOOGL) fell 3.2%, 3.0%, and 5.0%, respectively, on December 4. Now, let’s see how Apple stock is set to extend these losses on December 6.
Wall Street’s Day Off Doesn’t Help Equities Trading took a rare 24-hour hiatus yesterday to commemorate the passing of former United States President George Herbert Walker Bush, who died at age 94 last weekend. Traders had hoped that the day off would recharge buyers’ batteries after a dramatic 800-point selloff in the Dow on Tuesday, […] The post Market Morning: Day Off Doesn’t Help Wall Street, Tariffs Failling, Costco Signalling Inflation appeared first on Market Exclusive.
On November 20, Jeffrey Gundlach told Reuters that investors haven’t shown an appetite for Treasuries (TLT) even though US stock markets have fallen. He said, “Obviously, it is not a deflationary bear market, otherwise you would have a bond rally.” Gundlach also advised investors to stay out of investment-grade bonds. Gundlach is concerned that the selling pressure in the US stock markets (IVV) (QQQ) wasn’t accompanied by higher volatility (VIX). Investors should note that the drop on December 4 was also accompanied by higher volumes and volatility.
During an interview with Reuters, DoubleLine CEO Jeffrey Gundlach said that the current inversion of the yield curve (TLT) could signal that the US “economy is poised to weaken.” He added that the inversion at the short-end of the Treasury yield curve implies that the bond market doesn’t think the Fed plans to raise interest rates through 2019. As we discussed in Yield Curve Inverts for the First Time since 2007: What to Know, the spread between five and three-year Treasury yields narrowed to -0.01 percentage points on December 5.
Before we discuss how the tweet impacted the markets, let’s see what President Trump said and what he meant. Early on December 4, President Trump got investors’ attention when he started tweeting about US-China trade negotiations. President Trump tweeted, “President Xi and I want this deal to happen, and it probably will.
Usually, bond markets (BND) more accurately predict future market moves than do stock markets. Bond markets seem to be worried about future growth despite the recent 90-day US-China (SPY) (FXI) trade war truce. Euphoria from the truce seems to be wearing off, and investors are waiting for more details about how the talks between the two sides could progress. Today, stock markets opened lower, with the S&P 500 (SPY) down 0.62%, the Dow Jones Industrial Average (DIA) down 0.70%, and the NASDAQ Composite (QQQ) down 0.55% as of 10:15 AM Eastern Time.
In the previous part of this series, we discussed how Tesla (TSLA) saw solid gains of 32.4% in the first two months of the fourth quarter. Tesla’s rising Model 3 production capacity and investors’ hopes of consistent profitability could keep its stock positive in December. NIO (NIO) also gave investors a reason to celebrate in November.
Will Apple shine again? Is a tech turnaround looming? With Mark Newton, Newton Advisors, CNBC's Melissa Lee and the Fast Money traders, Tim Seymour, Brian Kelly, Steve Grasso and Guy Adami.