Premarket: Apple is red

From the Wall Street Journal’s “Stock Futures Drop in Volatile Trading” posted early Tuesday:

U.S. stock futures fell, putting the S&P 500 on track to flirt with bear market territory again…

On Monday, major U.S. indexes rallied, giving investors some breathing room after a volatile trading session the previous week. But by Tuesday, negative sentiment returned to the markets. Asian indexes broadly fell, weighed down by losses among technology stocks. European markets also traded lower.

Snap’s shares fell 28% premarket, following a profit warning on Monday, during which the company noted that the macroeconomic environment has deteriorated more than anticipated. Its losses rippled to other technology stocks, with Meta Platforms down 6.4% before the opening bell and Google-parent Alphabet down 4%. Advanced Micro Devices lost 2%.

Investors are confronting a range of signals as they try to map out the trajectory of the U.S. economy. Many have grown worried that the Federal Reserve’s plans for monetary tightening to tamp down inflation could tip the economy into a recession. That has been among the catalysts for the U.S. stock market’s brutal year, which has sent the S&P 500 falling 17% from its January high, based on Monday’s close…

Later Tuesday, investors will receive new commentary from Fed Chairman Jerome Powell, who will give remarks at an economic summit in Las Vegas. Investors will be looking for fresh clues about his outlook for inflation, the economy and the path of interest-rate increases.

Charts: Yahoo!Finance sees a commodity-channel-index pattern. Max pain moves down to $141 with a call mountain at $165.

5 Comments

  1. Michael Goldfeder said:
    @Joseph: While the Hedge Funds, Shorts, Traders, are all making profits, unloading, then repeating that process the following day or two, I’m comforted by the fact that without their involvement, Warren Buffet and Apple wouldn’t be able to benefit all long term shareholders at these bargain basement prices.

    With Apple’s war chest of $105 Billion for buybacks, coupled with Warren who has even more cash available and no buyback restrictions, this is the “Perfect Storm” at the moment. I’m looking out nine months at which time this current opportunity will have turned out to be quite the opportunity for those that KNOW Apple and what it will be bringing in the future.

    2
    May 24, 2022

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