Apple’s surge helps prop up NASDAQ as U.S. stocks fall on forecast of rise in consumer prices

“U.S. stocks fell, snapping a five- day winning streak for the Dow Jones Industrial Average, as a steeper-than-forecast rise in consumer prices reduced speculation the Federal Reserve will cut interest rates,” Nick Baker reports for Bloomberg.

Baker reports, “The Dow average retreated 40.30, or 0.3 percent, to 12,746.34 at 2:31 p.m. in New York. It had reached four straight record closes. The S&P 500 fell 2.45, or 0.2 percent, to 1457.23. The Nasdaq Composite Index rose 0.07 to 2513.11, aided by a rally in Apple Inc.”

Baker reports, “Apple’s gain helped prop up the Nasdaq. Apple rose $3.18, or 3.7 percent, to $89.08. Prudential Equity Group’s Jesse Tortora boosted profit estimates for the maker of iPod music players and Macintosh computers, saying results this quarter will be ‘solid.'”

Full article here.

Related articles:
Deutsche Bank: Apple TV could take 30% of set-top box market within a few years – February 21, 2007
Prudential ups Apple Inc. estimates on strong Mac sales, margins – February 21, 2007
Georges Yared: ‘This is the time to accumulate shares of Apple, Inc.’ – February 20, 2007
5 compelling reasons to buy Apple stock – right now – February 15, 2007
Citigroup upgrades Apple Inc. from ‘hold’ to ‘buy’ – February 12, 2007
Needham raises price target on Apple Inc. to $135 from $115 – January 29, 2007
Slew of analysts up price targets on Apple Inc. – January 18, 2007
S&P upgrades Apple to ‘Strong Buy’ with target price remaining at $110 – January 02, 2007

19 Comments

  1. For the period from July 2006 to the release of Vista this month, Microsoft stock price has risen faster than the Dow, making up all the ground it lost when it plunged in April 2006.

    But with the release of Vista, the stock has moved sharply lower against the Dow. Much the same pattern emerges against the Nasdaq.

    Last quarter’s profits were down 28% year on year. Even if Microsoft can juggle the numbers by counting revenue early, the impact of a poor market reception to Vista, the spectacular failure of Zune, and the continued unprofitability of xBox will take its toll eventually.

    Microsoft is really a one-trick pony – everything rests on the success of Windows. The Office suite is de-riguer in corporate america, but only as long as every desktop has a Windows PC on it. The Server applications, including exchange and SQL, are installed in almost every corporation – but if Europe moves to Linux this will eventually trickle across to american businesses.

    – Zune. (Microsoft VERY quiet on sales of Zune)
    – xBox. (was still being outsold by Playstation II last time I looked – and still losing money)
    – Vista. (Microsoft are coming to a sad realisation…)

    Apple is rapidly winning the hearts and minds of individuals all over the world. The Mac platform is no longer seen as weird or strange, and Apple is no longer seen as a flakey onse-trick business. In the boardrooms of corporate America, successful businessmen are watching IN AWE as Apple execute one brilliant strategy after the other.

    – iPod (astonishing success, huge range, unequalled market power)
    – iTunes (ubiquitous
    – iTunes Store (88% of music market – 2 billion songs, 50 million television episodes and over 1.3 million feature-length films)
    – iTunes Video / TV programming – see above
    – iTunes Movies – see above

    – Mac move to Intel (seamless execution – rapid consumer take-up. HUGE growth in notebook sales)
    – Tiger (drama-free, revenue of about $100 million from Tiger during the first quarter – with HUGE margins)

    And coming…

    – Leopard (The Vista kerfuffle will focus attention on Leopard like no other Apple OS/X release – and Mac base is MUCH larger now)
    – iPhone (a brand new market for Apple – huge potential, and great excitement pre-launch)
    – Apple TV (analysts predicting up to 30% of set-top box market in a few years: will leverage the market dominance of iTunes)

    When Microsoft stumbles, everyone will look to see who will inherit the mantle… A lot of eyes will be on Apple… My guess is that a lot of people will like what they see…

  2. US Government- approx $9 Trillion debt, with no retirement projected on budget.
    Average unsecured personal debt $15k per.
    Long list of state, county and local governments, school districts in debt.
    Student debt at an all time high and going higher each year at a rate faster than inflation.
    Home ownership (truly paid for- not mortgaged) post WWII low.
    Trade Deficit- all time high.
    Wages for 90%+ of Americans: stagnant.
    Exchange Rate with other currencies -Y2k a Dollar bought 1/2-1.3 Euros. Now a dollar buys approx .8 Euro.
    Largest non-entitlement on the US Federal Budget- Debt Service on almost $9 Trillion, most paid to foreign investors and foreign banks.

    By the time Dubya leaves office, the US National debt will have more than tripled. This is largely due to tax cuts for the top 2% of US taxpayers, paid for with borrowed money. Voted for by a Republican President and a Republican Congress.

    Your children and grandchildren will be paying for his fiscal joyride.

    Inflation? You bet your arse.
    Higher interest rates? Yep.

    If you are smart you will get liquid.

  3. US Government- approx $9 Trillion debt, with no retirement projected on budget.
    Average unsecured personal debt $15k per.
    Long list of state, county and local governments, school districts in debt.
    Student debt at an all time high and going higher each year at a rate faster than inflation.
    Home ownership (truly paid for- not mortgaged) post WWII low.
    Trade Deficit- all time high.
    Wages for 90%+ of Americans: stagnant.
    Exchange Rate with other currencies -Y2k a Dollar bought 1/2-1.3 Euros. Now a dollar buys approx .8 Euro.
    Largest non-entitlement on the US Federal Budget- Debt Service on almost $9 Trillion, most paid to foreign investors and foreign banks.

    By the time Dubya leaves office, the US National debt will have more than tripled. This is largely due to tax cuts for the top 2% of US taxpayers, paid for with borrowed money. Voted for by a Republican President and a Republican Congress.

    Your children and grandchildren will be paying for his fiscal joyride.

    Inflation? You bet your arse.
    Higher interest rates? Yep.

    If you are smart you will get liquid.

  4. US Government- approx $9 Trillion debt, with no retirement projected on budget.
    Average unsecured personal debt $15k per.
    Long list of state, county and local governments, school districts in debt.
    Student debt at an all time high and going higher each year at a rate faster than inflation.
    Home ownership (truly paid for- not mortgaged) post WWII low.
    Trade Deficit- all time high.
    Wages for 90%+ of Americans: stagnant.
    Exchange Rate with other currencies -Y2k a Dollar bought 1/2-1.3 Euros. Now a dollar buys approx .8 Euro.
    Largest non-entitlement on the US Federal Budget- Debt Service on almost $9 Trillion, most paid to foreign investors and foreign banks.

    By the time Dubya leaves office, the US National debt will have more than tripled. This is largely due to tax cuts for the top 2% of US taxpayers, paid for with borrowed money. Voted for by a Republican President and a Republican Congress.

    Your children and grandchildren will be paying for his fiscal joyride.

    Inflation? You bet your arse.
    Higher interest rates? Yep.

    If you are smart you will get liquid.

  5. KenC:

    The “deficit halved” claim is false; Media Matters has already debunked it. The deficit number they claim to have cut in half is not the 2004 deficit, but an inflated projection the OMB cooked up to make it easier for Bush to claim he reached the “cut in half” goal.

    Yes, I know you’ll try to invalidate this because it’s Media Matters, but there are plenty of other sources.

    What about $8b per month for this bullshit “war”?

  6. The deficit/debt posting was just pure nonsense. And last year was among the highest for increasing real wages for nonsupervisory workers. The only kernel of truth in that posting is that projected federal retirement costs, both social security and Medicare, are unsustainable. However, unless we’re stupid enough to tax our country into poverty, even that problem is completely solvable by cutting benefits for wealthy/upper middle class retirees and tying planned increases for the rest to inflation.

  7. @Always Right

    “Yes, I know you’ll try to invalidate this because it’s Media Matters, but there are plenty of other sources.”

    Then why did you use a source you admit is questionable, and not one of the “plenty of others” that are not?

    Better not to post at all then to pitch a softball like that.

    Less attacks and more facts – let’s raise level of debate, and we all just might learn something.

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