Premarket: Apple was red, turned green

apple premarket red 5/13/21From the Wall Street Journal’s “U.S. Stock Futures Edge Down After Wall Street Selloff” posted early Thursday:

U.S. stock futures wobbled Thursday on continued concerns about inflation, suggesting that the Dow is on track to extend a three-day losing streak…

U.S. stocks dropped Wednesday, with the S&P 500 and Dow suffering their steepest three-day declines since late October after a sharp rise in consumer prices heightened concerns about inflation.

Dwyfor Evans, head of macro strategy for the Asia-Pacific region at State Street Global Markets, said the 4.2% increase in consumer prices compared with a year earlier triggered debates about whether “inflation is actually more of an issue than we were led to believe and whether the Federal Reserve is going to have to be a little bit more aggressive.”

Still, Mr. Evans said a clearer picture would emerge only with a longer series of data on jobs and inflation. He said U.S. Treasury yields suggested that inflation expectations were still relatively contained.

My take: AAPL is getting dragged down by macro forces it can’t control. Apple’s doing fine.

UPDATE: What changed Mr. Premarket’s mind? I haven’t a clue.

5 Comments

  1. Daniel Epstein said:
    Apple seems to be trading up on employment and PPI data this morning which came in this morning at 8:30. No particular relation to Apple but market risk on or off seems to be what is moving. There has been a lot of mindless momentum trading going on.

    1
    May 13, 2021
  2. Finally returned to the brewery after completing my 4-state bee products route to astounding sales growth. Honey and pollen sales up 40% this month!
    The young Robinhood gamblers told me they pulled their stakes out of most positions to sit on cash, but ‘this is only for a few days.’ Someone on a Reddit forum told them to do that a week or so back. They hate sitting on the sidelines with $500 cash, some need new tires. While I suspect they’ll fall back into Gamestop and AMC, they’ll likely repurchase those fractions of Apple shares they once treasured!
    Disclaimer: I only follow about 8 Robinhood-types. They do use other platforms besides the ‘Hood. They also buy coins that use blockchain technology. They are of all ages but 80% are under 35. My sample is low but they do seem to move in lockstep, eschewing conventional stock market research and balance sheets.

    1
    May 13, 2021
    • A lurker on this forum who is one of those Robinhood types from the brewery texts me there are more like 25 new 2020 investors hangin’ out. I only know about the ones that engage, apparently most of the new investors sit and listen to the banter without ever saying much.

      1
      May 13, 2021

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