Premarket: Apple is green

apple premarket green 6-9-21 From the Wall Street Journal’s “Stock Futures Edge Up, Led by Tech” posted early Wednesday:

U.S. stock futures edged up Wednesday, pointing to tepid gains at the open led by technology stocks…

The S&P has been subdued for much of the last two weeks as investors weigh the reopening of the economy with rising inflation and supply chain concerns. The onset of summer months and the pandemic are also leading to thinner trading volumes, money managers said.

“We’ve seen very low volatility over the past week,” said John Roe, head of multiasset funds at Legal & General Investment Management. “As we get into the warmer weather, we have less market participants and a less volatile environment. This reduces liquidity.”

Worries about runaway inflation have abated in recent days, although investors remain on watch for fresh data on inflation in May that is due Thursday.

“The debate around how persistent inflation is and will be for the coming months is key. This might create some volatility,” said Luc Filip, head of private banking investments at SYZ Private Banking. Last month’s “higher than expected [consumer-price index] figures triggered quite a bit of market stress,” he added.

My take: Two greens in a row. Haven’t seen that since May.

12 Comments

  1. Jerry Doyle said:
    There was an article that I read yesterday in the SCMP on “China trade coronavirus outbreak threatens temporary ‘shock’ after May figures fell short of expectations.” Apple’s Foxconn assembly plants & suppliers (as part of Hon Hai Precision Industry) are in and around Shenzhen & Guangzhou where the outbreak is occurring. Below is the update from the SCMP news:

    “…. I think the risk of a supply-chain disruption is rising, and export prices/shipping costs will likely rise further. Guangdong province plays a critical role in the global supply chain,” Zhang said.

    It has to do with the coronavirus Delta variant. If not contained, then we could see major disruptions again in the global supply chain network as Apple & other tech firms still are highly dependent on China as their major source of product component & assembly supply. I suspect we will see the Delta variant spread in the US this fall & winter. Little doubt it already is here in the states.

    In summary, it just is too early to believe “all is clear.” Pharmaceutical companies & governments must continue to work on vaccine productions & getting as many folk vaccinated as possible. I used to believe international travel was on my schedule for 2022, but my optimism is fading.

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    June 9, 2021
    • Arthur Cheng said:
      The Guangzhou and Shenzhen outbreak is actually rather mild by world wide standards (around 20 or so per day), and will be controlled soon.The one to watch out for actually is in Taiwan, where it is affecting some chip manufacturing facilities. Taiwan is reporting over 200 per days, with over 20 deaths. Taiwan has had much more lax border restrictions throughout, and they believe that is causing the outbreak and has started to impose those restrictions, especially for flight crews. That may affect transportation logistics in the short term.

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      June 9, 2021
      • Bart Yee said:
        @Arthur. Yes, that’s an important point. Having a few to thousands of Foxconn assembly workers idled is a big deal in China but having TSMC’s Taiwan fabs shut down due to a Taiwan COVID Variant outbreak would create a huge choke point for Apple right at the source of its most important components, it’s CPU/SoC silicon hearts.

        It would not surprise me if Apple were to quietly acquire and distribute US made Moderna / Pfizer / J&J-Janssen vaccine (all much more efficacious than the Sinovax’s paltry 50% at best) and inoculate its contract workforce (also a big draw to work for an Apple Supplier if there ever was an incentive).

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        June 9, 2021
  2. Bart Yee said:
    Here is the CDC’s Covid Variant page that details the variants in the US and worldwide, their clinical impacts and level of concerns. I’m looking separately for whether variants are susceptible to current vaccines. Most vaccine makers and governments are already working on potential booster shots aimed at variants in their region.

    https://www.cdc.gov/coronavirus/2019-ncov/variants/variant-info.html

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    June 9, 2021
  3. “We saw indications that some practices that we know too well may lead to tipping and to the emergence of gatekeepers,” — EU Competition Commissioner Margrethe Vestager said about Siri, Alexa and whatever GOOG calls AI today.
    “From the preliminary results published today, it appears that our concerns are shared by many players. It’s too early to say if my inquiry will lead to cases against companies which will be decided after a 12-week long public consultation ending Sept. 1. Report out in 2022.”
    My take, she’s being led by Spotify & knows <.001% of what Siri & Alexa know, wouldn’t mess with budding AI, we’re too close to the Singularity…

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    June 9, 2021

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