Look what closing 11 Apple Stores can do

From CNBC’s “Stocks move into the red on news Apple is reclosing some stores in Florida and Arizona” posted Friday afternoon: 

Stocks rolled over to trade lower on Friday after Apple said it will reclose some stores given recent spikes in coronavirus cases.

The Dow Jones Industrial Average was down 140 points, or 0.5%, after starting the session with a more than 300-point gain. The S&P 500 traded 0.5% lower while the Nasdaq Composite was down 0.3%.

The tech giant said a total of 11 stores will be closed in Florida, Arizona, South Carolina and North Carolina. Apple had previously closed all its stores around the world amid the initial coronavirus outbreak. Both Florida and Arizona — along with California and Texas — have seen record spikes in coronavirus cases recently.

My take: Apple casts an awfully big shadow these days.

UPDATE: From Wedbush analyst Daniel Ives…

[F]undamentally speaking we view these temporary closures as having a negligible demand impact near-term.

9 Comments

  1. Paul Brindze said:
    Of course no significant financial impact in Apple. Another of the many examples of Apple doing the right thing, and of thinking long term, not minute to minute or quarter to quarter.

    A buying opportunity.

    2
    June 19, 2020
  2. Jerry Doyle said:
    This market pullback (right now) is not Apple specific. The talk among analysts, business commentators and economists is fear that the rise in COVID-19 cases in certain states may impact negatively the nation’s commerce going forward. If cities are compelled to re-institute quarantines, then they go back to previous shutdowns. Restaurants will not be able to have inside or even outside dining. Perhaps Disney Land or Disney World will not be able to reopen. Sports events will not happen with people in attendance. The NCAA college football programs are ready to roll and this involves hundreds of millions of dollars this fall. In other words, certain major cities in the nation return to quarantine levels, if COVID-19 escalates. So, this is more than Apple.

    Candidly, I do not see where this ominous news hurts Apple stock price. Individuals who want the new 5G iPhones and the new SE iPhones or whatever new Apple products simply order them on-line. I truly believe Apple is well positioned to insulate itself (to a high degree) from this negativism should we have the misfortune of having a COVID-19 relapse.

    0
    June 19, 2020
  3. Aaron Belich said:
    This should help bring some reality back to the market that Covid-19 isn’t going away anytime soon. Leisure travel got hit late last week and retail is going to take another pounding.

    All of this is a negligible impact on Apple, but no doubt traders are going to take some short term gains selling/shorting the news.

    2
    June 19, 2020
  4. Peter Kropf said:
    OK, we won’t mention “I’m not responsible.”

    My bad.

    2
    June 19, 2020
  5. David Emery said:
    I think substantial volatility will continue until there’s a vaccine that’s sufficiently distributed that people believe it’s safe to go out. John Gruber pointed out that even in NZ, which has no active cases, people aren’t going to movie theaters.

    That’s a combination of the technical solution of a working vaccine, the public health/government operation to get a large number of people vaccinated, and then the publicity/consumer sentiment that believes the vaccine will actually work.

    We’re months away from that, maybe even a full year.

    1
    June 19, 2020

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