Premarket: Apple is green

apple premarket red 6-2From TheStreet's "Dow Futures Gain On Economic Recovery Hopes As Markets Look Past George Floyd Protest, U.S.-China Tensions" posted early Tuesday:

U.S. equity futures extended gains Tuesday, following on from solid sessions in Europe and Asia, as hopes of a near-term recovery from the coronavirus downturn outweighed concerns over the impact of violent domestic protests over the death of George Floyd...

European stocks were also on the move, rising to the highest levels in nearly three months as investors reacted to the impact of the European Commission's plan to pump more than €750 billion into the ailing economy as well as the German government's approval of a €9 billion rescue package for Lufthansa Airlines, the region's biggest carrier...

Global oil prices were also on the rise ahead of an expected meeting of OPEC producers, as well as non-member allies such as Russia, that is expected to include discussions on deeper or extended production cuts...

Overnight in Asia, Japan's Nikkei 225 rode the wave of last night's rally on Wall Street to close 1.19% higher at 22,325.81 points while China stocks lead the region-wide MSCI ex-Japan benchmark to a 0.8% gain heading into the final hours of trading.

My take: I know traders are looking forward a quarter or two, but I can't remember a time when the Street seemed more disconnected from what's happening on, you know, the streets.

2 Comments

  1. Jerry Doyle said:
    “… My take: I know traders are looking forward a quarter or two, but I can’t remember a time when the Street seemed more disconnected from what’s happening on, you know, the streets.”

    Agree. The response of the markets is unbelievable. There is a disconnect. Much is based on hope, but hope carries one only so far. No vaccine until sometime in 2021. Than again, 1 out 4 say they do not plan to take the vaccine. Geo-political tensions between the superpowers will get worse. World economies propped-up through printing of fathomless supply of liquidity. Excitement over states economies reopening to little business while others closed down due to riots. States & local governments’ budgets eviscerated where many already are discussing layoffs. Approximately 6.4 million (15%) citizens in the US unemployed. I could go on but the markets don’t seem to care. The markets keep climbing. What am I missing here? Don’t give me pie-in-the-sky verbiage, give me facts on which to predicate the markets’ performance.

    As I denoted previously, Apple is positioned nicely to navigate these uncharted economic waters. Reports last evening says Apple is cutting iPhone prices in China, as it seeks to extend the momentum it has enjoyed as the Chinese economy gradually reopens following virus-related lockdowns & closures. CNBC reports that although Apple’s own official Chinese website does not reflect price reductions, double-digit discounts can be seen on various reseller sites like Tmall.

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    June 2, 2020
  2. David Drinkwater said:
    I am seriously tested by the idea of exiting positions that are effectively 100% capital gain, waiting for the June Quarter shit-show to happen and then re-entering at a lower price, higher cost basis. I just need to confirm whether or not the long-term capital gains tax rate will max out at 10%.

    Made my academic calendar (June 30) gifts with AAPL yesterday/today. Too late in the afternoon to strike, apparently.

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    June 2, 2020

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