Premarket: Apple is red

From the Wall Street Journal’s “U.S. Stock Futures Edge Up Ahead of Fed Policy Update” posted early Wednesday:

U.S. stock futures ticked higher Wednesday as investors awaited fresh guidance from the Federal Reserve and another batch of earning reports from the nation’s biggest companies..

The stock market is hovering near all-time highs, with investors betting on strong corporate earnings, the economic rebound, and continued support from central banks’ easy monetary policies. Their optimism has been tempered in recent days by concerns about the Delta variant of Covid-19, China’s regulatory crackdown and the risk of persistently high inflation.

“There is a general fishing for direction right now,” said Aoifinn Devitt, chief investment officer at Moneta Group. “The strong underpinning of the market is that there is a lot of capital waiting on the sidelines, waiting for an opportunity to enter, and that means any corrections are very short lived.”

My take: Buy the rumor and sell the news, I guess. This was Apple’s third blowout quarter in a row, and the third to be rewarded by a sell-off. Who — or what — is making these trades?

6 Comments

  1. Chris Ferebee said:
    Let’s see how things go once the market opens.

    2
    July 28, 2021
  2. bas flik said:
    street expects 1.19 eps for q4 2021
    given 40% and 30% miss i see a 20% miss for q4
    so q4 will be 1,19x 1,2 = 1,428 eps
    1,68+1,4+1,3+1,428 = 5,80 eps 2021
    current price level of 145 = 25 multiple
    not really expensive
    i go buy extra shares at 125

    6
    July 28, 2021
  3. Kirk DeBernardi said:
    Apple is juicy red in my book.

    Patience, patience, patience.

    2
    July 28, 2021
  4. Aaron Belich said:
    People will eventually come around to the idea that a company can be worth multiple trillions.

    Anyone else hear Tim talking about how he doesn’t like how much they are paying for freight? If Apple were to the tire/step into logistics… an off shoot of project Titan?

    4
    July 28, 2021

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