Premarket: Apple is flashing red and green

apple premarket red green 11-18From the wsj’s “Stock Futures Edge Higher in Choppy Trading” posted early Wednesday:

Optimism that vaccines will curtail infection levels and propel the economic rebound next year has bolstered investors’ risk appetite this week.

On the flip side, a litany of concerns including rising Covid-19 cases that are prompting new restrictions on social and business activity, and the halting pace of economic recovery, are weighing on sentiment. Hopes for a large fiscal stimulus package are also ebbing, investors said.

“When you look at the U.S., the prospect for either near-term fiscal policy or sizable medium-term fiscal policy is much reduced,” said James McCormick, a strategist at NatWest Markets. The economic recovery also seems to be slowing during the fourth quarter, he said. “And most importantly, you’ve got a new surge in coronavirus cases that is starting to trigger some new state-by-state lockdowns.”

Federal Reserve Chairman Jerome Powell on Tuesday also cautioned that the economy faces significant challenges and uncertainty because of the increased spread of the coronavirus. He also said it was too soon to say how a potential vaccine would change the outlook, with the possibility of widespread vaccination still many months away.

My take: Mr. Premarket doesn’t know which way is up this morning.

2 Comments

  1. Jerry Doyle said:
    I am in the camp that 2021 is the COVID-19 year continued.

    While anticipation of the benefits derived from having effective vaccines dispensed during the early (hopefully) part of that year, it still will take months for the populous who desire the vaccine to receive it.

    I also am in the camp that a sizable percentage of the population will refrain or delay taking the vaccine.

    In summary, while celebration of the newly proven vaccines is good news for the nation, the year of 2021 still remains the year of COVID-19 for the markets. I see, though, little negative impact on Apple’s stock price from COVID-19 going forward.

    0
    November 18, 2020

Leave a Reply