Premarket: Apple is green

apple premarket green 2-16From TheStreet's "Dow Futures Point To Record High Open As COVID Recovery Trade Roars" posted early Tuesday:

U.S. equity futures powered higher Tuesday, while global stocks extended their longest winning streak in at least 17 years, as investors continue to ride a COVID recovery trade built by accelerating vaccine rollouts and improving corporate earnings.

With President Joe Biden finding support for his $1.9 trillion stimulus bill from a Congress now unfettered by impeachment proceedings, investors are betting that the new injection of cash, alongside a vaccine effort that has partly-inoculated just over 11.5% of the U.S. population, will continue to boost sentiment.

Corporate earnings, as well, have impressed over the final three months of the year, even amid a pullback in consumer spending and uncertainty over the path of the virus heading into the holiday season.

With just over 75% of the S&P 500 reporting, fourth quarter earnings are expected to grow 3.5% from last year to a share-weighted $356.3 billion, according to Refinitiv data, with current quarter earnings looking at a 21.1% improvement from the same period last year.

The healthy backdrop, as well as a weaker U.S. dollar, has stocks on the move again Tuesday, with contracts tied to the Dow Jones Industrial Average indicating a 210 point opening bell gain that would take the index to a fresh-all time high and extend its post-election advance to around 8.4%.

My take: "Unfettered by impeachment proceedings." Four words that cover a lot of blood-soaked ground.

5 Comments

  1. While still curious when the share price will break out, I am appreciative of the much lower CBOE Volatility Index (VIX). January saw VIX bump above 60, now it is close to 20. This calm often leads to more participation in the markets.

    0
    February 16, 2021
    • David Emery said:
      A combination of day traders licking their losses, and the rest of us trying to avoid the market churn? That would make sense to me.

      (AAPL down a bit at 10:30)

      0
      February 16, 2021
  2. Gregg Thurman said:
    Pre-market was GREEN, but it didn’t last long. Today’s low so far ($133.74) is consistent with the lows of Thursday ($133.88) and Friday ($133.69). Are we forming a bottom?

    And just like that AAPL drops to $133.21,

    0
    February 16, 2021

Leave a Reply