Premarket: Apple is green

From the Wall Street Journal’s "Oil Jumps, Stock Futures Rise After Dow Enters Correction" posted early Tuesday:

Stock futures edged higher, while bond yields and oil prices rose, a day after fears of a recession pushed the Dow Jones Industrial Average into a correction...

Brent crude, the international oil benchmark, continued to climb higher on fears of a U.S. ban on Russian oil imports. Brent crude, the international oil benchmark, rose over 3% to $127.09 a barrel.

Investors are scrambling to analyze the likely broader impact of Russia’s invasion of Ukraine and the hardening Western response. Market volatility has jumped as relations between the West and Russia have hit new lows, while soaring commodity prices have raised the prospect that global growth could take a hit and have muddied the outlook for central banks seeking to tame inflation by raising interest rates.

On Monday, the Dow Jones index slipped into correction territory for the first time in two years, the Nasdaq Composite index fell into a bear market and the S&P 500 experienced its worst one day decline in about a year-and-a-half.

“I would say the market is in a state of shock. Given the tectonic shift we have seen, everyone is second guessing what the end game may be,” said Brian O’Reilly, head of market strategy at Mediolanum International Funds.

Charts: Yahoo!Finance sees a bearish price crosses moving average pattern. Max pain is at $170, as are the call and put maxima.

3 Comments

  1. Bart Yee said:
    In any “normal” time, the issues brought up by the Barron’s article about a possible Apple event “flop” might affect AAPL stock price. But given the global economic and mindshare upheavals the Russian-Ukrainian conflict (RUC or RUW depending on how you look at it), the macroeconomic issues are going to completely swamp any particular one day or near term reaction to Apple’s product announcements.

    However, the IPhone SE is still an important incremental cog in the iPhone and Services lineup. Given that in 2021 the SE sold 22.24 million units, and given a $399-$429 ASP, that’s a $8.87B-9.54B business, not counting additional services. We also should note the older phones traded in, handed down, or otherwise sold off add to the used iPhone market and installed base. There’s also significant evidence that the SE attracts new and Android conquest / switcher users.

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    March 8, 2022

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