Apple stock plagued by the ‘Curse of the Dow’

“Apple Inc. has fallen victim to the ‘Curse of the Dow,'” Kristen Scholer reports for The Wall Street Journal.

“Friday marks the three-month anniversary of Apple’s inclusion in the Dow Jones Industrial Average. It hasn’t exactly been a stellar three months for Apple’s stock,” Scholer reports. “The old Wall Street adage about the supposed ‘curse’ goes as follows: Companies typically rally in the months leading up to their addition to the Dow 30, but underperform in the months that follow.”

Scholer reports, “‘The ‘Curse of the Dow’ is alive and well,’ said Nick Colas, chief market strategist at Convergex, referring to Apple’s performance.”

Read more in the full article here.

MacDailyNews Take: Ooh, scaaarrry! What do the entrails say?

23 Comments

  1. Or you know, it could also be the incompetence of Tim “the steward” Cook. The sooner he is gone and his evil sidekick Ive, the better off Apple will be.

    1. Is this some pathetic attempt at performance art, or are you that ridiculous and worse than pathetic? Maybe you can stop participating in the dumbing down of the world.

        1. I’m not refuting man! I agree with you! But why stop with Tim and Johnny? You are forgetting about the idiot who hand selected them…Steve Jobs! Let’s face it…Apple really hasn’t been the same since Jobs came back. Scully had the right idea. And I really miss my Newton.

          1. Jony Ive designed the Newton.

            Apple Music hasn’t even been released yet, so no one knows how well it will do. iTunes song purchasing will still be available; this is just another option within the same umbrella. It’s almost the exact same thing as paid spotify, and I don’t hear anyone screaming bloody murder about how crappy that is. $14.99 for a family plan actually sounds like a decent deal.

            Apple’s stock problem is that of an artificial glass ceiling. When you’re already so big, people subconsciously assume that there is limited room for further growth. The majority of analysts believe the hill will crest before too long. All things that go up must come down. Who cares about stock/manipulation; it’s all just glorified gambling anyway.

    2. Suuuuureee, Joe. The largest company on the planet, that has dramatically increased its value under Tim Cook. Suurrre.

      You’ve got some pretty funny ideas on how to evaluate an executive’s performance.

      By the way, what wonderful executives would you propose instead? And what are the criteria that tell you they’d do a better job?

  2. The laws of large numbers don’t care if you are from Cupertino or Katmandu. Once a stock becomes a required component of index funds, it performs in line with the indexes. It’s not personal, it’s just math.

      1. @breeze The nature of index funds is they are composed of companies listed in the associated index. AAPL as a component of the DOW implicitly requires that fund managers offering DOW related tracking funds include it’s shares in their managed index fund.

        1. Only the ones that track the Dow 30 and then… the devil s in the details : The fund’s prospective spells out the latitude afforded to the fund manager of quantity requirements or proportions, by (for example) weighting, volume market cap, etc…

  3. I don’t particularly believe in curses so I would say “poppycock.” A few months isn’t long enough to start yelling about curses. People are always looking for causes of a stock not performing the way they think it should be performing.

    Although I don’t have an answer for Apple’s relatively poor performance these past five months, I’d have to say the stock is merely consolidating. Apple is a very unusual case, so I don’t know if anything normal applies to Apple’s share price movement. I doesn’t really make any sense for a financially successful company to lose value, but then again Wall Street makes very little sense to me when it comes to determining company value.

  4. The actual ‘DOW’ is an antiquated old POS.

    This is a question of stock market participant behavior. Experts in human behavior are going to have to thrash through this situation. From my perspective, this is all about stupidity. Jack up the value of companies that make NO profit? Hello Amazon! THERE is a curse. We all know damned well what happens to OVER-inflated balloons.

    💥POW!💥

  5. It’s about value. If buyers aren’t willing to step in and pay higher prices, the stock price will not rise. If sellers aren’t willing to step in and accept less, the stock price won’t fall. It’s classic Auction Market Theory at work. For the time being, buyers and sellers are in agreement that AAPL isn’t worth more than 132 dollars [or less than 122 dollars].

  6. Apple stock manipulation was far more effective at movies no the stock than fundamentals ever did. Otherwise this should be a 200-300 priced stock based on fundamentals.

    Now that it’s part of the Dow, the manipulation of the Dow value is far more important to,the price of AAPL than the fundamentals once again. If AAPL went up like it should, the Dow would ALSO go up markedly. And then there would be all this CNBC news about the American economy improving when it’s just one company outperforming.

  7. After years of playing second fiddle to the firm’s trading divisions, Goldman’s investment bank is on track for the best year in its history, paced by a merger-advisory team that has left its rivals in the dust amid a deal-making boom.The Wall Street firm’s banking fees in the second quarter surpassed revenue from its fixed-income trading arm, according to results released Thursday. That was only the second time banking came out on top since the financial crisis. At a town-hall meeting Thursday morning with the firm’s managing directors, Chief Executive Lloyd Blankfein singled out the group for praise, according to a person familiar with the matter. Mr. Blankfein was less effusive about the debt-trading unit, which has historically been a profit driver for Goldman but turned in a disappointing quarter. Revenue from that unit—the fixed-income, currencies and commodities arm—fell 28 to $1.60 billion from $2.22 billion in the second quarter, a steeper drop than competitors J.P. Morgan Chase & Co. and Bank of America Corp. reported earlier this week.

Leave a Reply to Tom Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.