Premarket: Apple is green

apple premarket green 5-6-21From the Wall Street Journal’s “Stock Futures Edge Higher Ahead of Jobless Data” posted early Thursday:

Major U.S. indexes stand at or close to all-time highs, bolstered by a surge of economic growth and corporate earnings as restrictions on some activities are relaxed. Some investors say the speed of the U.S. recovery, which stands in contrast to some other regions where Covid-19 vaccines aren’t as widespread, will keep stocks on an upward trajectory.

“We should see cash flows and company cash flows really improve, especially with the reopenings happening,” said Mary Nicola, a fund manager at PineBridge Investments. Although valuations are high, stocks remain attractive compared with low-yielding bonds, she added…

Companies have blown past forecasts so far this earnings season. Of the 381 companies on the S&P 500 that had reported through Wednesday, 84% had topped analysts’ expectations, according to FactSet.

Yet many companies beating forecasts have seen a lackluster response in their share price. Some investors say that is a sign, alongside recent volatility in tech stocks, that the rally that began last March is beginning to flag.

“Although the S&P is just 1% off its high, I think equity markets are beginning to look very fatigued,” said Paul O’Connor, head of multiasset investments at Janus Henderson.

My take: Apple is 12% off its high. Just sayin’.

6 Comments

  1. Daniel Epstein said:
    Daily price action does not seem dictated by premarket direction much of the time. A few minutes before market open price seems to be lower by 20 cents a share. Yesterday the stock was up by a couple of dollars early in the day and closed flat or down by the end of the day. No particular news about Apple as far as I could tell explained the result. Not unusual

    2
    May 6, 2021
  2. Daniel Epstein said:
    I think we can quibble all day long about the meaning of words. I was pointing out there seemed to be little or no correlation between the pre market direction and the price direction the rest of the trading day. Hence my use of “dictating” or the lack thereof. The lack of “influence” (using your term) or correlation implies that the pre market direction is at best an incomplete measure of what might be moving the stock. Seemingly only when the news is so large that the follow through into the day’s trading correlates is it worth noting. For instance news that is learned while Asian markets are open that moves the stock when trading in US opens could be a worthwhile reason to make note. And if that price action lasted into the close that would also be useful to know, The premarket direction especially when a small magnitude by itself is little more than noting a coin toss as stocks like Apple rarely stay exactly where they closed.

    2
    May 6, 2021
    • Rodney Avilla said:
      Luckily, as we go thru life, we don’t run across very many people that demand that we only use the terms that they deem proper.

      2
      May 6, 2021

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