Premarket: Apple is red

From CNBC's "Stock futures fall after S&P 500 hits new low for the year; 10-year Treasury yield briefly tops 4%" posted early Wednesday:

Stock futures fell Wednesday as traders struggle to find their footing after the S&P 500 notched a fresh bear market low in the previous session...

Stock futures pared earlier losses after the Bank of England said it would temporarily purchase long-dated UK government bonds in an effort to stabilize the plunging British pound. Sterling briefly popped on the news before trading 0.5% lower against the dollar at $1.0647...

Several technical metrics show that the stock market may be oversold, but some on Wall Street are worried that investors have not priced in an earnings slowdown and the impact of the Federal Reserve’s rate hikes. The S&P 500 breaking below its previous low is a key indicator for some that stocks still have further to fall.

“I think we’re certainly not at the end of the road in terms of pricing in the full recessionary outcome. … We really need to get to dirt cheap valuations on equities, and we’re not quite there yet,” Anastasia Amoroso, chief investment strategist at iCapital, said on Tuesday’s “Closing Bell.”

Charts: Yahoo!Finance sees a bearish MACD pattern. Max pain stays at $155 with the same call mountain at $160 and put peak at $150.

See also: Bloomberg report clobbered Apple and its suppliers overnight Wednesday

63 Comments

  1. Greg Lippert said:
    Here we go, it was only a matter of time till FUD was published. From AppleInsider,

    “A new claim says that despite the popularity of the iPhone 14 Pro, overall demand for the iPhone 14 range has been lower than expected.

    Previously, multiple reports have claimed a strong demand, and also Apple shifting production to the iPhone 14 Pro to meet orders. Now, however, a new report claims that a lack of demand means Apple has asked suppliers to scale back production.

    According to Bloomberg, unnamed sources say that the increased demand expected by Apple has failed to appear. Suppliers have reportedly been told that Apple now intends to make 90 million handsets for the second half of the year.”

    1
    September 28, 2022
  2. Gregg Thurman said:
    And what are those claims based on, lower lead times? How about, with the introduction of Indian production capacity, lower lead times are the result of greater supply?

    3
    September 28, 2022
  3. Fred Stein said:
    @Gregg: Since you’ve posted often about option opportunities, what are your thoughts that we’re headed for another V, a relatively short downturn followed by a quick return to $150 and above?

    1
    September 28, 2022
  4. “ The 57th Super Bowl will take place on February 12, 2023, at State Farm Stadium in Glendale, Arizona. It will be the first with Apple Music as a partner on the Halftime Show, according to the NFL’s announcement.”
    I realize this news passed through Apple 3.0 back on 9/25 but the inclusion of Barbadian singer Rihanna as the main act will draw millions of her fans, not necessarily NFL fans. The game is screened all over the world. I’ve heard there’ll be plenty of Apple TV+ Promos during the same event.

    0
    September 28, 2022
  5. S Lawton said:
    “How about investing in all its products instead of top moneymakers.” Where’s your proof it doesn’t? ” Its events.
    Homekit. Take a look at “Apple HomeKit: Why 2022 Is a Make-or-Break Year for the Smart Home Platform” It agrees with you on privacy but Apple’s efforts may be too little, too late.
    “Apple’s move into Apple TV+ has been genius by all accounts. Who cares how long it took?” 1 billion pockets an only 40 million subscribers. Apple is only 1 of many choices for the consumer pocket.
    ““Spotify had twice tge market share of Apple and Amazon was only a few points behind.” So? Apple takes the time to do things right, and folks appreciate that. If they didn’t ,then folks wouldn’t support them.” 8 years for 15% of the market. Looks like folks aren’t supporting them.
    ““Apple is buying space on a satellite company deeply in debtwhile others have their own plans for a far rwaching satellite network.”

    Really? THIS is where you think Apple needs to spend its cash?” Lets just hope Apple doesn’t bankrupt Globalstar.
    ““Is Apple still buying cloud services instead of providing its own?” Apple iCloud is huge and getting huger by the day. It’s also way, way ahead of the game in regard to basing it on clean energy. Unlike others.” Huge? Its not even in the top ten and since it buys fro others, it doesnt count it in its 100% renewable.

    1
    September 28, 2022
  6. S Lawton said:
    “It’s also way, way ahead of the game in regard to basing it on clean energy. Unlike others.”

    “Amazon Announces 71 New Renewable Energy Projects Globally, Including Firsts in Brazil, India, and Poland”
    “We are bringing new wind and solar projects online to power our offices, fulfillment centers, data centers, and stores, which collectively serve millions of customers globally, and we are on a path to reach 100% renewable energy across our entire business by 2025,” said Adam Selipsky, CEO of Amazon Web Services. “Around the world, countries are looking to accelerate the transition to a clean energy economy, and continued investments like ours can help accelerate their journey as we all work together to mitigate the impacts of climate change.”

    As the largest corporate purchaser of renewable energy globally, Amazon now has a total of 379 renewable energy projects across 21 countries, including 154 wind and solar farms and 225 rooftop solar projects, representing 18.5 GW of renewable energy capacity. By the end of 2021, the company had reached 85% renewable energy across its business.”

    0
    September 28, 2022
    • Robert Paul Leitao said:
      S. Lawton: Thank you for your posts today. I appreciate your presence in the comment section and the critical questions you pose for discussion and good conversation.

      0
      September 28, 2022
  7. Bob Goldstein said:
    @Joseph Bland
    I don’t know what my post had to do with buybacks vs dividends. I simply stated that I don’t care too much about the day to day price of Apple. I have done extremely well without focusing on day to day detail. I put my trust in the people who run Apple to do the right thing. I have done extremely well over the years. I believe Apple started the buybacks 10 years ago and I made my investment 22 years ago, long before buybacks and dividends.
    Apple is not my only holding. I have done very well in tech in the same time period. Apple went way up but all the rest did also without the buybacks. It is true that Apple has done better than the other tech stocks during the past year, but Apple is still down around 20%. I am not concerned about any of my holdings going back to their highs
    It is true that I would prefer higher dividends over buybacks but I trust management to do what they think is best. Dividends are money in my pocket, buybacks may or may not increase the share price over time. As I am a senior, I don’t have any illusions of my mortality so I would prefer to have the money in my account rather than live on the hope that the share price will be much higher because of buybacks. I am sure buybacks help but it come down to how much profit Apple can make, and my assumption is that they will continue to make products that people will want to buy and the share price will eventually go up anyway. The same with all tech. I know you were pretty elated about Microsoft going down about two weeks ago, and Apple going up. Jobs once said Microsoft does not have to lose for Apple to win
    I do take issue though with your attitude that it is a great thing for the longs that Apple went from $182 to the whatever the low was so that they can buy back shares on the cheap. I did not appreciate your comments about drinking Mai Tai’s at the pool and toasting to low price of Apple. I think in the real world most people would like to see the share price rise rather than toasting to the opportunity to buy cheaper shares

    3
    September 28, 2022
  8. Bob Goldstein said:
    I don’t need to reread Daniel’s argument. I am not arguing buybacks vs dividends. I am just stating that I prefer to have higher dividends that I can use now rather than the theory that in the long run buybacks are better. If I was a young man I would be happy with buybacks, I am 70, I know you are 76. I am a realist that has no idea how long I will live so thinking long term advantage of buybacks is meaningless to me.

    3
    September 28, 2022

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