Apple: An ugly close

After climbing to another intraday record, shares plunged $6 to close in the red.

From MarketWatch’s “Dow ends nearly 400 points lower, U.S. stocks swoon, on doubts of quick economic recovery” posted Tuesday afternoon.

U.S. stocks on Tuesday ended sharply lower, with the S&P 500 snapping its 5-day win streak, as investors grew wary of the economic, public-health and policy response to the coronavirus pandemic.

Equities lost steam after the White House reiterated a call to cap the next round of COVID-19 stimulus at $1 trillion or less, but accelerated their losses in the final hour of trade, after several Federal Reserve officials warned of challenges to the economy as infection rates soar across several states.

The Dow Jones Industrial Average tumbled 396.85 points, or 1.5%, to end at 25,890.18, the S&P 500 index shed 34.40 points, or 1.1%, closing at 3,145.32 and end a 5-session win steak; while the Nasdaq Composite Index fell 89.76 points, or 0.9%, to finish at 10,343.89, after carving out an intraday 10,518.98 record.

My take: No particular problem with Apple, which outperformed the indices.

10 Comments

  1. John Konopka said:
    Down $1.16 at the close but up $1.06 after hours. What a world!

    0
    July 7, 2020
  2. Steven Philips said:
    My Take:
    The Board Giveth. The Board Taketh Away!

    0
    July 7, 2020
  3. Fred Stein said:
    Since May 1, AAPL has gone up > 25%, or $320B in Market Cap. That’s investors voting. A few short downturns since then, indicate a few traders taking profit.

    It seems, the investors, not the traders, run the table for AAPL these days.

    0
    July 7, 2020
  4. David Emery said:
    The trading volume was interesting today, a fair number of shares moved at the start, and then a lot moved at the close. Anyone got any thoughts on that?

    0
    July 7, 2020
  5. David Baraff said:
    The bad close was my fault. I screwed up selling some $400 calls and had to start a hedge against it rising too much, which involved both buying back a small portion of them, and simultaneously (finally!) buying some more common AAPL at $378, to guard against further stock skyrocketing.

    Since I impulsively bought at the near high of the day, early in the morning, the stock had no choice but to steadily decline throughout the day, with a finishing evil swoop in the last few minutes. If you had asked this morning at 7:30 ish (Pacific time) I could have told you this was going to happen.

    Sorry, and I promise it won’t happen again. Completely my fault.

    2
    July 7, 2020
  6. David Baraff said:
    (I honestly don’t know why I thought this time “it will be different”.
    Mental conversation with myself:
    “David, let’s sell covered calls at $400” (stock at $320).
    “Yeah, ’cause if it got to $400, I’d be more than happy to sell it then. And even if it surges above $400, and my call is assigned (i.e. sell the stock) I can buy it back when it inevitably drops below $400 again. Double win!”
    “Yes, self, let’s do that!”)

    Cut to the chase:
    “It’s too near $400. You can’t have my stock! NO!! It’s MINE. Buy back those damned calls… This sucker’s going nuclear! $500, next stop!”

    Someday I’ll learn.

    0
    July 7, 2020

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