Premarket: Apple is red

From the wsj’s “Stock Futures Point to Tepid Recovery After Tech Selloff” posted early Friday:

U.S. stock futures edged higher Friday, signaling a muted rebound for the S&P 500 a day after the technology sector fell by the most since October and dragged the broader market lower.

A swift selloff in U.S. government bonds and technology stocks on Thursday took some investors by surprise. Yields on U.S. Treasurys, considered among the safest assets to own, have been rising as money managers bet on a rapid economic rebound and pushed more funds into stocks and riskier assets. But the improving returns from bonds has also led to the view that technology stocks’ valuations are too high.

In the longer term, investors say that the rollout of Covid-19 vaccines and a fresh fiscal stimulus package from President Biden’s administration will bolster the economic recovery.

“The fundamental picture is robust. It may even be more robust compared to before” the vaccine rollout, said Wei Li, head of investment strategy for BlackRock’s exchange-traded fund and index investments for Europe, Middle East and Africa. “Once the yield levels stabilize, risk assets could still do well.”

Ms. Li said her group remains bullish about stocks. Thursday’s selloff in broader stock markets could entice some investors to begin buying again, she said.

My take: More blood on the floor. Is the bottom near?

2 Comments

  1. Jerry Doyle said:
    “…. But the improving returns from bonds has also led to the view that technology stocks’ valuations are too high.”

    I am of the mindset that the tech sector is “not” over valued as a whole, especially Apple. Tech will lead the way into post COVID recovery. I also am of the mindset that folk are not going to rush back to the pre-COVID era. There has been a monumental behavioral change, a new populace mindset, a new world-of-work conditioning and remnants of the virus era is here to stay. I know none of my friends and relatives anxious anytime soon to get on a plane and fly internationally & find themselves stuck in some foreign country. There even is a high reluctance to fly transcontinental. Apple is poised to benefit no matter and at these stock price levels Apple is a “must” buy if one has extra cash lying around.

    2
    February 26, 2021
  2. John Konopka said:
    Premarket is not very prescient. At midday Apple is up over $3.

    0
    February 26, 2021

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