Tech stocks jump with fiscal-cliff relief rally; Apple sentiment magically improves with new year

“Tech stocks maintained their strong gains in late trading Wednesday, with firms like Hewlett-Packard and Facebook leading the sector as part of a market-wide relief rally following a last-minute deal to avert the fiscal cliff,” Rex Crum reports for MarketWatch.

“With less than an hour left in the trading day, the Nasdaq Composite Index was up by 81 points, or 2.7%, at 3,100, with the Philadelphia Semiconductor Index adding 3.6% and the Morgan Stanley High Tech 35 Index up by 2.7%. The Dow was trading up more than 250 points at last check,” Crum reports. “Investors were in an upbeat mood after the House of Representatives passed Senate-approved budget legislation late on Tuesday night. The move means that the U.S. economy will avoid the fiscal cliff of spending cuts and tax increases that threatened to push it back into recession.”

Crum reports, “Apple was also on the rise, as its shares climbed nearly 3% to $548. A handful of analysts issued positive notes about the company’s outlook that contrasted with more downbeat comments from Wall Street over the last several weeks.”

Read more in the full article here.

Dan Gallagher reports for MarketWatch, “Apple Inc. kicked off the New Year on Wednesday with a handful of positive comments from analysts that contrasts with the relatively downbeat sentiment the stock felt over the last couple of months, helping to boost the stock around 2% to $543.40 by midday as one of the leaders in the tech rally.”

“The timing was notable, in that Apple managed to close out 2012 with a gain of about 31% — respectable, though below several of its tech peers on the S&P 500 roster,” Gallagher reports. “Apple, in fact, barely made the top-20 list for the year among gainers in this category, with the stock having been hurt by a brutal sell-off that clipped nearly one-quarter of its market value since the launch of the iPhone 5 in late September.”

Gallagher reports, “On Monday, several analysts issued some bullish comments on the company that just closed out its key first fiscal quarter, which includes the holiday shopping period. Andy Hargreaves of Pacific Crest wrote that strong iPhone sales “should drive December [quarter] results above Street expectations.” Tavis McCourt of Raymond James raised his iPhone sales target for the December period to 48 million units from 46 million, globally. Trip Chowdry of Global Equities Research predicted that between 3 million and 4 million new iPhone 5 units were purchased by enterprise customers for their employees in the December period, with demand for enterprise applications such as and Workday helping to drive demand in this segment.”

MacDailyNews Take: And all that was “wrong” with AAPL two days ago is now magically right. Like clockwork.

Did you make a lot of money today?


    1. It seems blatantly obvious to me (and probably many others reading this) that MDN used “magically” (twice) in a facetious manner. In other words: MDN knows full well that there was no “magic” involved and are implying manipulation rather blatantly.

      Can you not see what MDN meant to convey in their headline and Take?

        1. I guess the problem would be, why are you restating MDN’s Take. Is it that you like to read your own MDN echoes or do you just like wasting everyone’s time or what?

  1. Yes. Yes I did. I’ve been using some of that money that I made when I sold at $700. It feels awfully good using house money. Sure glad I didn’t hold when it hit the top. That’s got to be a really bad feeling now.

    1. Actually it’s not a bad feeling at all when you’re long on the stock and you originally bought in at $240. Not to mention the fact that you have to factor in the capital gains taxes you’ll now have to pay in April if you did sell at $700.

      1. IRA’s. And a $200/share gain plus what you make going back up is worth paying taxes if they do apply. Besides, I only deal in options so my gains were greater than if I had been selling shares. Plus I bought puts all the way down which was as good as I made reaching $700. Now I’ll buy calls going back up. Made money going to $700. Made money dropping from $700. Will make money as it goes back up hopefully to $700 again. Buy and hold eh? Right.

          1. What don’t you understand? IRA’s? Calls? Puts? Buying low and selling higher to make a profit? Making money as a stock increases in value : calls. Making money as a stock loses its value. Buying puts. Making money as a stock increases in value again : calls. It’s not difficult. Shares of Apple are too expensive to buy in large quantities. Options are your best bet. You stand to make much more on the same amount of money invested. And it is no more risky than buying stock. And even if you are in a situation where you pay taxes, I’ll gladly pay taxes on a huge gain every single time.

  2. Of course AAPL has risen dramatically here in the last couple of days! I mean, look at all the things that have changed for the better recently: There’s um, and then there’s uh, and of course there’s (chirp, chirp, chirp) . . . .

    Oh, yeah, I see it now: ABSOLUTELY NOTHING HAS CHANGED FROM LAST SEPTEMBER except a couple of mind-blowing record quarters (and one most surely coming)! Manipulated market sentiment and more than a few insipid “analysts” chased investors out of this equity, but now a host of undeniable facts have finally caught up with them. May Gawd help the morons who bragged here yesterday and over the past weekend that they’ve (shrewdly) shorted AAPL and remain strongly bearish for 2013. They deserve what they get.

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