Premarket: Apple was red, turned green

apple premarket red 3-4From the wsj’s “Stock Futures Drop Ahead of Powell’s Comments” posted early Thursday:

U.S. stock futures edged lower Thursday as investors awaited comments from Federal Reserve Chairman Jerome Powell about the outlook for inflation and the central bank’s views on rising bond yields…

A recent selloff in government bonds has lifted Treasury yields, curbing investors’ appetite for the technology stocks that had soared in a low-yield environment. Some money managers are betting that additional fiscal stimulus in the U.S. will boost inflation and cause the Fed to raise interest rates sooner than they had expected. That has led to a jump in real yields, or the returns on bonds after adjusting for inflation expectations.

Investors say they are hoping Mr. Powell will answer questions on how he views the jump in yields when he speaks at The Wall Street Journal Jobs Summit at 12:05 p.m. ET. Central bank officials have previously said that they will keep monetary policy loose until the economy is stronger, and that they view the rise in bond yields as a signal that investors are optimistic about the U.S. economic recovery.

“Powell’s comments today are going to be really important,” said Hugh Gimber, a strategist at J.P. Morgan Asset Management. “Clearly, what we’re seeing over the last few weeks is equities being disrupted by the pace of the rise in real yields, and that puts the Fed in a tough space.”

The Fed chair’s comments will also offer one of the last opportunities for markets to hear from key policy makers before a blackout period begins ahead of the next monetary policy review in mid-March. “This is his real opportunity, prior to the next Fed meeting, to give investors clarity on how the Fed is viewing the bond market,” he added.

My take: More blood on the floor. Do I smell a buying opportunity?

4 Comments

  1. Dan Scropos said:
    Apple has $32 billion remaining on their current repurchase authorization and repurchased $20 billion+ last quarter at an average price of $120. With the share price still hovering near those levels after an astonishing quarter, it would sure be nice to see them deploy most or all of the remaining cash at the current levels.

    The spike in volume leads me to believe they’re bigger buyers this quarter than last. At least I hope so. With quarterly eps set to come in over $1, a YoY increase of ~$.40, this is the ideal time to empty the (current) coffers.

    1
    March 4, 2021
  2. Michael Goldfeder said:
    Very high volume this week as compared to the past two weeks. That tells me Luca is all in gobbling up shares at these prices.

    0
    March 4, 2021

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