“Technology stocks shifted largely to the red Tuesday afternoon after the Federal Reserve’s latest round of interest rate cuts disappointed investors who were hoping for a more drastic move,” Benjamin Pimentel and Rex Crum report for MarketWatch.
“The Fed lowered the discount rate by a quarter point to 4.75%, but a rate cut of a half point had been widely expected. The Fed also cut the nation’s funds rate by a quarter point to 4.25%, which was in line with expectations,” Pimentel and Crum report.
“Reaction was swift, as the tech-heavy Nasdaq Composite Index fell ($COMPQ: 2,652.35, -66.60, -2.4%),” Pimentel and Crum report.
“Among bellwether tech stocks, Apple Inc. fell (AAPL: 187.71, -6.50, -3.3%) fell. Earlier in the session, Apple shares reached a new high of $196.83,” Pimentel and Crum report.
Full article here.
Just keep buying. 300 a share this time next year. Mark it!
This may be the last time you see AAPL shares below $190…
Ron Paul 2008
Uncle Benarke is a Grinch.
OK, Mac Man . . . Ron Paul 2008 = Michael Dukakis 1988. Do the math.
Stock up on the AAPL We’ll be riding the express train to $300.00+ in 2008.
Ronco and Mrs. Paul’s forever.
What an overreaction! I simply can’t believe the run-up was in expectation to a larger rate cut!
There isn’t much that can hold AAPL from quickly recovering and continuing its growth. Significant elements are converging for Apple and I’m sure they’ll beat their own projections again.
I’m holding onto my AAPL shares.
Temporary pullback. No sweat here. Xmas bonus means more shares prior to $200 mark.
Åmpar always makes me laugh!
If you are looking for something to mark down, try this:
If next year’s stuff, beginning with Steve’s annual January performance, doesn’t meet expectations of new wow just wow, boom it just works, etc., etc., then neither will these AAPL expectations materialize.
In spite of the lie that it is, MSoft has done a great job of making Leopard look like an attempt to match up with Vista which means the switching, without some extraordinary boost in speed and power from Cupertino, will not accelerate and market share gains will not be enough to attract new investors.
So, that leaves tunes players and phones. We’ll see what the new generations of these gadgets do and maybe it will be enough. But, that’s a lot of maybe.
@ Realist
“In spite of the lie that it is, MSoft has done a great job of making Leopard look like an attempt to match up with Vista”
What designer drugs are you on?
aapl should reach over $400 next year. We should just ignore the parallels between this market run-up and the run-up in 99/00. After all, the Merican economy is based on consumer purchasing, and credit problems never affect that! This is especially true when pricing power is lost and companies have to drop prices over and over to reach lower and lower down the economic ladder to continue market momentum!
For a realist you sure seem to have your head in the clouds. Fact is, OS X “Leopard” is far and away a superior computing solution than Vista. This alone will fuel a serious migration that has probably only just begun. Thats being real. Facts on the ground. Saying MS has a “perception” out there is having your head in the clouds.
I guess traders are like women.
Give them an inch
And they’ll want a sex toy……
bullrider,
I agree with your assessment with one large caveat. Apple is primarily a consumer based company. This means it derives most of its income from consumer sales. If the sub-prime situation leads to a US credit crunch this will in all likelihood lead to some alteration in credit flows away from the local market then all bets are off.
Credit flows are where countries and their companies invest their funds in various countries’ banking systems to name just one area. Any astute investor (such as large companies and international banks) diversify their currency reserves around the world. If an economy experiences an economic problem then they move those investments to regions where they can derive the best return.
This would lead to some sort of American recession. A short sharp recession (two or three quarters of negative growth is the best worst case scenario). At worst a large scale contraction in international credit flows leading to a worldwide recession.
In both cases sales of consumer goods would contract and Apple is a consumer based company. “It’s the economy stupid” phrase you should be focusing on not just the release of cool Apple products. Cool products mean nought if consumers are afraid of losing their jobs.
Jimbo’s name always makes ME laugh.
<soapbox>
RE: Realist
I love how people sign in with names like “realist” and “reality” check to bless us with their immense knowledge to try and save us from ourselves.
OH HEP ME, HEP PLEEEZE MR REALIST!!!
</soapbox>
MarketWatch’s Benjamin Pimentel and Rex Crum report is yet another exaggeration. The one-half point cut was NOT ‘widely expected’ whatsoever. It was speculated, perhaps hoped-for, but not ‘widely expected’. The quarter-point was ‘widely expected’, but of course, when the predictable selloff ensued for a host of reasons, these fiction writers can assign their fictional wisdom with certainty of being right.
There is little excellence in financial journalism at MarketWatch.
I think Realist is ZuneTang’s more realistic alter ego.
Does anybody else think he just tipped his hand with that last comment?
Regardless of Apple’s strengths, if the market tumbles, Apple will almost certainly tumble with it. The positive is that when the market recovers–assuming it does fall–Apple will be among the first to shoot up, and will provide a superb investment opportunity.
There are many reasons why strong stocks get sold when the market tumbles: sometimes they are sold simply out of fear; sometimes they are sold to cover other losses (stock losses or otherwise); if a bank or other financial firm holds the stock, it may have to sell a strong stock to maintain reserve requirements…
Apple may be $300 per share next year, but it could also be at $100 or less per share. I’m not saying it will be, but wild optimism–even with the strongest stocks–can be dangerous, as the tech crash of 2000-20003 shows.
I’m hoping this was just an overreaction, but technically and fundamentally, the US economy is due for a correction. Time will tell.
Vote RON PAUL 2008. For the good of the country and the good of the economy.
“Apple will be among the first to shoot up,”
Wrong. Apple fanboys are the first to shoot up. Then they go to MDN and post how they think the world works rather than how it does.