Premarket: Apple was red, turned green

apple premarket mcintosh 4-7From the Wall Street Journal’s “Stock Futures Wobble Ahead of Fed Minutes” posted early Wednesday:

U.S. stock futures edged higher Wednesday as investors awaited notes from the Federal Reserve’s last policy meeting for clues on how officials view inflation and the pace of economic recovery…

Signs that the economy is rebounding from its coronavirus-driven slump have buoyed investors and helped propel the major indexes to unprecedented levels this week. The rapidly progressing vaccination rollout, combined with both monetary and fiscal support, is aiding in the recovery of the labor market and the manufacturing sector. Money managers are betting that more of the economy will return to a normal footing soon and give a boost to travel and leisure companies.

“We had been expecting the data to improve about this time, and early signals are that the recovery is absolutely on track,” said Hugh Gimber, global market strategist at J.P. Morgan Asset Management. “This is the period where the forecast of a strong recovery in growth is starting to look more like the fact of a strong recovery in growth.”

Some investors remain nervous that the easing of restrictions, coupled with pent-up consumer demand, could drive up inflation and prompt the Fed to raise interest rates sooner than expected.

“When you have all this money that has been pumped into the system and into people’s pockets, but that hasn’t been spent yet, then you know inflation is going to come at some point,” said Brian Walsh, Jr., senior financial adviser at Walsh & Nicholson Financial Group.

My take: When you have all this money that has been pumped into the system and into people’s pockets, but that hasn’t been spent yet, you know at some point someone is going to buy some Apple merch.

2 Comments

Leave a Reply