Premarket: Apple is green

From the Wall Street Journal’s "Stock Futures Rise After a Rocky Week as Fed Rates Call Looms" posted early Wednesday.

U.S. stock futures posted strong gains ahead of the Federal Reserve’s announcement that is expected to provide clarity on coming interest-rate rises—the prospect of which spooked markets this week...

Stocks have been rocked in recent days by expectations that the Fed will embark on a series of rate increases this year to temper heightened inflation. The prospect of a shrinking balance sheet and higher rates has prompted some to sell risky assets, including shares of technology companies that promise future returns, and cryptocurrencies. Investors are also monitoring rising tensions between Russia and Ukraine that have drawn the focus of NATO allies.

Economists expect the Fed to confirm expectations that it will start raising rates in March when it releases its statement at 2 p.m. ET. Traders in interest-rate futures markets are betting that the Fed will increase rates four or five times this year, according to CME Group.

“Today the focus is going to be on the Fed,” said Luca Paolini, chief strategist at Pictet Asset Management. “It’s more about the tone of the press conference. People may have an expectation that given the market turmoil and the geopolitical tensions the Fed may tone down its rhetoric.”

Charts: Yahoo!Finance sees a bearish double top. Max pain has moved down to $167.50 with the same call mountain at $170.

2 Comments

  1. “Today the focus is going to be on the Fed,” said Luca Paolini, …“It’s more about the tone of the press conference. People may have an expectation that given the market turmoil and the geopolitical tensions the Fed may tone down its rhetoric.” So what’s been the focus all week? Excellent results get initially slammed at Microsoft, but today those results are cherished. Mad monkeys run rampant all over the market (and a highway) without regard to the performance of individual firms. Today everyone calms down to listen to the “tone” of the Fed. What if someone at the Fed Press Conference freaks out & declares the sky is falling? Chicken Little did the same thing and raised an unnecessary ruckus. Fundamentals like actual sales, profits, market share, regional growth, new product & services pipeline, keeping stores & factories open and the locals efforts to keep Looney Tunes off Mr. Cook’s lawn, these remain my focus.

    0
    January 26, 2022
  2. Jerry Doyle said:
    Apple was up nicely all morning until noon when the markets started pulling back on Fed Chair Powell’s (interpretive) hawkish commentary. He should have referred only to his prepared FOMC’s official statement. Less is more. 🙂

    I wonder if Apple was buying back stock this morning; or is the period closed for them to do so?

    0
    January 26, 2022

Leave a Reply