Premarket: Apple is green

apple premarket green 10-26-21From Jack Denton’s “Dow, S&P 500 Head for New Highs, Big Tech Earnings Loom” posted early Tuesday by Barron’s:

The stock market was rising Tuesday as investors continued to devour strong corporate earnings, which have been the latest catalyst pushing equity indexes to record highs.

Futures for the Dow Jones Industrial Average indicated an open 100 points higher, after the index closed at a record high of 35,741 points Monday. The S&P 500, which also ended Monday at a new high, was set for a similarly upbeat start, as was the Nasdaq.

Companies representing around 50% of the market capitalization of the S&P 500 index will have reported quarterly earnings by the end of the week. Despite widespread worries about supply-chain disruptions—which have pinched some companies—results have been strong, and earnings per share growth is on track to exceed Swiss bank UBS’ 30% estimate for the quarter.

“Even though this has been a good earnings season in aggregate we are starting to see more companies with supply backlogs, hiring difficulties, and rising input prices that are eating into profits,” said Jim Reid, a strategist at Deutsche Bank. “Indeed yesterday saw a few consumer staples companies lower full-year profit outlooks in their earnings releases.”

Patterns: Engulfing line (bearish). Max pain: $146 up from $145.

apple premarket green 10-26-21

9 Comments

  1. Shares just broke through $150 ‘ceiling’ like it was tissue.
    I strongly suspect we are about to see ‘buy the rumor, sell the news’ turn into buy, buy, buy. Apple products are delivering results for customers & logistics firms. UPS up 8%.

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    October 26, 2021
    • “Shares just broke through $150 ‘ceiling’ like it was tissue.”

      It’s not going to be as easy as that to drill through the mountain of weekly $150 calls the banks, brokerages and hedge funds have sold for expiration this Friday. .

      0
      October 26, 2021
  2. Jerry Doyle said:
    I am edgy over if Apple gives us some form of forward guidance. I fear if not, then the markets will take back whatever gains we may see in the run-up to the earnings call. Conversely, if Apple delivers as we anticipate some impressive performance numbers along with intimation that the horizon going forward is positive, then I see the stock breaking through previous ATH numbers.

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    October 26, 2021
    • Robert Stack said:
      @Jerry: I see no reason why Apple should give forward guidance, and many reasons why they should not: 1) I agree that not giving guidance will keep the stock from rising as much as it might, but since Apple plans on continuing its buybacks why inflate the price for itself?; 2) China imposes harsh new lockdowns in areas where just a few new covid cases appear; hence Apple cannot assume ANY production goals will necessarily be met; 3) In light of (2), failure to meet any sales or revenue guidance put forward would inevitably result in a lawsuit here in the US.

      I’d love to hear from anybody some good reasons why Apple should give guidance (other than “we are optimistic moving forward, blah blah blah”), but it is in their own best interest not to do so at this uncertain time.

      2
      October 26, 2021
    • Robert Paul Leitao said:
      Jerry: I know you are even more optimistic, but I’m liking the forecast from Dan Ives of a $3 trillion market cap in 9 – 12 months. That’s works to around his price target of $183 per share. Between here and there and now and then, any softness in the share price is a buy opportunity for Apple and long-term shareholders, in my view. In other words, I’m looking well beyond the market’s response to September quarter results and December quarter guidance in whatever form it’s provided.

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      October 26, 2021

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