Premarket: Apple is green

From the Wall Street Journal’s “Stock Futures Rise Ahead of Major Bank Earnings” posted early Thursday:

U.S. stock futures rose ahead of a wave of earnings, including from major banks, which investors will use to assess how companies are positioned to deal with risks including inflation and higher energy prices.

Futures tied to the S&P 500 gained 0.7% Thursday, putting the broad market index on course for a second day of gains. Nasdaq-100 futures climbed 0.8%, suggesting gains for technology stocks.

A spate of major companies are slated to post quarterly results before the market opens, including UnitedHealth Group, U.S. Bancorp, Bank of America, Walgreens Boots Alliance, Morgan Stanley, Wells Fargo and Citigroup. Investors will be looking to see whether stickier-than-expected inflation has impacted earnings and whether companies’ outlooks are dimmed by rising energy prices, supply-chain disruptions and anticipated interest rate increases over the next two years.

“Can companies weather those risks or was the entire rally only fueled by ultraloose monetary policy?” said Carsten Brzeski, ING Groep ‘s global head of macro research. Investors are looking to see “where are we in terms of the post-lockdown cycle and also to get some insights into how solid earnings and companies are going into this tapering period and this era of somewhat higher interest rates.”

My take: Yahoo!Finance’s trend spotter sees a bearish engulfing line. Max Pain is socked in at $145.

UPDATE: After this was posted, max pain slid to $144.

2 Comments

  1. Greg Lippert said:
    I’d love to know if secret $$$ passed to Bloomberg to write that bogus story and start a PR spin that pulled AAPL back down so that insiders could load up.

    0
    October 14, 2021
    • Bart Yee said:
      Insiders cannot purchase shares at any time because of potential insider trading issues. They, like the company, must have predetermined buying or selling plans filed with the company and SEC. Awarded or vested shares are also subjected to predetermined award (based on performance metrics as determined by BOD or contracts) or sale (usually to either generate $$$ for tax withholding or cash for the recipients.

      IMO, it would be suicidal for any upper level management to divulge insider information for the purposes of stock price manipulation. If you are inferring that middle to lower level management or employees (who likely own lesser amounts of stock) would risk their employment and reputations to make monetary gains, well, it’s always possible but usually found out eventually.

      However, the supply chain outside of Apple’s direct control could certainly be leaky.

      1
      October 14, 2021

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