“Earnings news from the likes of Coca-Cola, Goldman Sachs and J&J should help guide stocks Tuesday, but traders will most intently be watching the trading activity in Apple,” Patti Domm reports for CNBC.
“The darling of Wall Street, Apple has seen its worst bout of selling since the market was bottoming in late September and early October,” Domm reports. “As of Monday, Apple lost nearly 9 percent in five days, and the stock finished down 4.2 percent Monday, near its intraday low, at $580.13.”
Domm reports, “Apple is now down just under 10 percent from its record intraday high of $644.00 on April 10, as a number of factors combined to drive down its shares. In the past week, there was news of a Justice Department suit against Apple and publishers, alleging collusion on e-book pricing.”
“There were also concerns raised by a BTIG analyst about iPhone pricing and the ability of customers to upgrade. There have also been worries about iPad sales, and on Monday, PiperJaffray said NPD data showed a five percent decline of Mac sales in the March quarter, versus the 14 percent increase expected by analysts,” Domm reports. “But traders and strategists are also watching Apple’s technicals, which signal to some it still has a ways lower to go, after its rapid move above $600. How much it will fall is up for debate, since the company reports earnings next week, and that could prove a positive catalyst, or not.”
Domm reports, “Apple’s moves are also worrisome because of its out-sized influence on the stock market.”
Read more in the full article here.
MacDailyNews Take: Too big to fail.
Sorry, but after seeing this play out so many times, it’s difficult to take any of the bullshit “worries” seriously.
[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]