Premarket: Apple is green

From the Wall Street Journal’s “Stock Futures Rise Ahead of Powell Comments” posted early Friday:

Stock futures rose Friday as investors awaited Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole, seeking clues about when the central bank might start to scale back its easy-money policies.

Major indexes are close to all-time highs, powered by expectations that strong economic growth will extend a surge in corporate profits. A key question for investors is when the Fed will scale back its $120 billion in monthly asset purchases and consider raising interest rates. Minutes from the Fed’s late July policy gathering showed that many of the officials thought asset buying could start to slow down by the end of this year.

Mr. Powell is due to address the central-bank symposium in Wyoming at 10 a.m. ET and his remarks will be streamed online. Investors are looking to gauge whether the Delta variant, which threatens to delay a rebound in travel and leisure spending, will alter the Fed’s plans.

“Everyone is waiting for Jackson Hole, for Powell’s speech,” said Joost Van Leenders, senior investment strategist at Kempen Capital Management. “It is clear the hawks in the [Federal Open Market Committee] are getting more vocal on this and there is not a full consensus. I would like to have more clarity on this.”

My take: Max pain suggests that Apple will close at or near $148 today.

6 Comments

  1. Gregg Thurman said:
    AAPL is currently 50c below my weekly break even point, and 71c below max value. Fingers, toes, legs, arms and eyes are crossed.

    0
    August 27, 2021
  2. David Emery said:
    Closed slightly above Max Pain, right ($148.60)? It does look like the Max Pain cap was in place for most of the day.

    And if the Fed raises rates, wouldn’t that actually help Apple, with its huge savings, when compared to other companies whose borrowing costs would go up?

    0
    August 27, 2021

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