Premarket: Apple is red

apple premarket red 9-29-22From CNBC's "Stock futures fall after Wednesday’s big market rally" posted early Thursday:

Stock futures slumped Thursday, putting the major averages on track to give back some of the sharp gains seen in the previous session.

Futures tied to the Dow Jones dropped 181 points, or 0.7%, while S&P 500 and Nasdaq 100 futures declined 0.7% and 0.9%, respectively.

The moves followed a broad rally for stocks a day earlier, as the Bank of England said it would purchase bonds in an effort to help steady its financial markets and the cratering British pound. Sterling has stooped to record lows against the U.S. dollar in recent days.

It marked a stark shift from the aggressive tightening campaign many global central banks have undertaken to cope with surging inflation.

The Dow on Wednesday gained or 1.9%, while the S&P 500 rose nearly 2% after hitting a new bear market low on Tuesday. Both indexes snapped six-day losing streaks.

As stocks rose and the BOE shared its bond-buying plan, the yield on the benchmark 10-year Treasury note dropped the most since 2020 after briefly topping 4%.

“If the market had a negative sign in front of it today, and not a positive sign, it wouldn’t surprise me,” said Liz Ann Sonders, Charles Schwab’s chief investment strategist. “The market’s going to do what it does on any single given day. You can attempt to sort of point to what might have sat behind it, but that’s just a parlor game. A lot of it is the market got really oversold and buyers stepped in.”

Charts: Yahoo!Finance sees a neutral commodity-channel-index pattern. Max pain stays at $155 with a call mountain at $160 and a put peak at $150.

apple premarket red 9-29-22

6 Comments

  1. “BofA Global Research analyst Wamsi Mohan loped $25 from his Apple price target, lowering it to $160 per share, while cutting his rating on the stock to ‘neutral’, as he anticipated “material negative estimate revisions” for its near-term profits.
    Apple shares have outperformed significantly this year and have been perceived as a relative safe haven,” Mohan said in client note. ‘However, we see risk to this outperformance over the next year … driven by weaker consumer demand.’” – The Street
    “Material Negative estimate revisions” – what BS. Are we supposed to listen seriously to analysts chasing their own estimates like kittens after their tails? Cite me a material fact, a live human in a position to know or even a long-time industry analyst that agrees, Mr Mohan or Mr. Gurman. Unknown, unnamed sources from the planet Xenon don’t count.
    Mr. Mohan seems to be vying for the downside cheerleader role once held by Mr. Sacconaughi. I find 0 sources for Mohan’s FUBAR advice other than similar “no source” reporting from B’berg. Mark Gurman’s bragging about manipulating share prices with his stories would get him fired at a reputable financial news source (FT, Economist, Barron’s).

    3
    September 29, 2022
    • Keep in mind BoAs Merrill Lynch division owns a big chunk of declining Bloomberg LP. ‘In cahoots’ is the technical phrase.

      3
      September 29, 2022
  2. Aaron Belich said:
    Buy the dip. Dollar cost average all the way down to wherever the bottom is eventually found.

    Then.

    Hold on to your butt.

    Wahooooooo!

    1
    September 29, 2022

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