Premarket: Apple is red

From the Wall Street Journal’s "Stock Futures Slip, Pointing to Worst Week in Nearly a Year" posted early Friday:

Stock futures declined Friday, putting the S&P 500 on track for its worst week in almost a year as investors weighed the prospect of a spell of higher inflation and slower economic growth...

A bevy of factors has prompted investors to become more cautious after a rally in stock markets for much of the year. The Federal Reserve and other global central banks have tilted in recent weeks toward reining in pandemic-era stimulus measures.

Surging prices for natural gas in Europe and Asia have raised concerns that the bout of inflation will last longer than many money managers had expected. Meantime, rising energy costs are expected to take a toll on growth in the world economy.

“The market’s focus has turned to the stagflation narrative with what’s been going on in natural gas,” said Daniel Morris, chief market strategist at BNP Paribas Asset Management...

Investors also pointed to lingering worries over property giant China Evergrande Group and whether Congress can resolve its battles over U.S. spending plans. House Democrats delayed plans to vote on a roughly $1 trillion infrastructure bill Thursday, as they came up short on reaching agreement around a separate social policy and climate package.

My take: What a way to start the new month, with AAPL punished for the sins of dysfunctional governments.

10 Comments

  1. Fred Stein said:
    The massive injection of capital has inflated all asset classes, including t-bills. This artifiically depressed interest rates, which in turn justified higher valuations of growth companies, including Apple.

    Fortunately Apple is not over priced. Still market reaction, pulls down AAPL temporarily. Timing remains a black art.

    2
    October 1, 2021
  2. Gregg Thurman said:
    Hoo boy, it’s 9:06 AM EST and in the last hour AAPL has rallied to $141.95 (19 cents above my b/e point) up 45 cents from yesterday’s Close. Volatility is nothing if not an adrenaline inspired ride.

    0
    October 1, 2021
  3. Gregg Thurman said:
    All these observations about AAPL being down.

    Well, it’s truth in lending time again. A a large volume sale AAPL imploded. In less than three minutes it dropped from hope to clearing b/e to no hope. Dropping below $140 (insanity when others are going up) I stopped the bleeding, only to watch AAPL do a complete turn around Closing well above my max profit profit.

    I hate it when that happens, especially when I bought deeper in the money than I normally do.

    Just a thought, with nothing to back it up, but I think AAPL has achieved capitulation and a bottom.

    SEPT has been a tough month. Thankfully there are eleven others in a year.

    2
    October 1, 2021

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