Apple leads tech rally after shedding U.S.-China trade war albatross

Courtney Dentch and Ryan Vlastelica for Bloomberg:

Apple Inc. jumped the most in three weeks after the U.S. and China declared a trade truce over the weekend, relieving the iPhone maker of some of the pressure its growth outlook faces in the event of a prolonged conflict.

The shares gained as much as 3.3%, contributing the most to a rally that’s pushing the S&P 500 Information Technology Index toward a record high. Apple is bouncing back from a drop of as much as 18% after the latest flareup in early May.

The trade truce removes “the albatross” that has been around Apple Chief Executive Officer Tim Cook’s neck, and the shares could add as much as $25 as a result, Wedbush analyst Dan Ives wrote in a research note. Based on Apple’s Friday close, such a gain would return the company’s market valuation back above $1 trillion.

Over the weekend, President Donald Trump said would hold off imposing an additional $300 billion in tariffs and the world’s two largest economies agreed to resume negotiations.

MacDailyNews Take: Apple’s share price is back up over the $200 psychological hurdle!


    1. Welfare? That’s a pretty idiotic statement. Trump subsidizing farmers who are adversely affected by his trade war is not welfare. But he may find that farmers and consumers will vote their pocketbook when they have had enough of paying for his re-election campaign tariffs, which is just a tax by another name.

      Or maybe we should just let family farmers die off as collateral damage and let multi-national corporations, who are used to receiving gov’ment welfare subsidies, take over all food production in this country, until we have nothing but a few monopolistic conglomerates providing us with sub-standard “food.”

      1. So in your world, federal subsidies to people who aren’t working this year is not “welfare”. What is it?

        Remember, extreme right wingers assigned full blame to Bush’s bailouts to Obama, who yes signed multiple bipartisan bills that indeed underwrote corporate welfare to automakers and banks. Maybe we should just let autoworkers and homebuilders die off as collateral damage ?

        But you put the nail on the head when you identified the reelection campaign, the one thing that will keep Trump and his narcissistic crime organization out of jail. The misinformation campaigns that Trump fully supports are epic. Nobody should be surprised at how pathetically low he can go.

        We can only hope that Manafort gets some company in the federal pen soon.

  1. By the way, what have American workers and businesses won in this “easy to win” trade war? Trump caved on all of his tough rhetoric. The increases in tariffs — bluffs. Huawei being a matter of national security? Just kidding. China’s continued support for North Korea? It’s all good, Trump’s friends with communist dictators on all continents.

    Trump got zero results. No signed deal. No agreement to kerb IP theft. No end to illegal Chinese state subsidies to its enterprises. Economic traitor US corporations will keep their supply chains in China, as Apple just proved. Nothing will be done to stop Chinese hacking and surveillance. China will continue to buy Iranian oil. After all the bluster, Trump just tucked tail and let China have everything they want.

    MDN, if you want to see where the tech rally is happening, you should move to Beijing. That’s where the shots are called. Tech illiterate twits like Trump don’t stand a chance. He gets his tech intelligence from Faux Friends.

  2. It is quite hilarious that in this time of self-made US turmoil, MDN thinks that posting only sparse Wall Street articles on days of positive trading makes for a compelling argument for the self-defeating Trumpist isolationism and trickle-down cronyism.

    One day after the MDN rah-rah stock rally article, this happens:

    And this always happens when voodoo economics rules the day:

    According to the Federal Reserve, the wealthiest 1% of individuals hoard 38.6% of US wealth. The top 10% hoard 77.1% of all wealth in the US. That leaves the bottom 90% of the nation holding 22.9% of wealth. The game is rigged. People like Jony Ive and empty pantsuit Ahrendts are gifted tens of millions of dollars in compensation for showing up (or in Ive’s case, even when he didn’t show up). Meanwhile the people who are critical to running Apple’s business — and indeed all of America’s businesses — through hard work every day are given a relative pittance. Self-proclaimed “worlds greatest dealmakers” are allowed to swindle contractors and lenders, abusing bankruptcy law multiple times, and they are rewarded for malfeasance. The exact actions from a small businessman would have resulted in jail time.

    From the article:
    “Economic policymakers think the expansion could dim as stimulus from tax cuts and low interest rates fades while a U.S.-China trade skirmish brews. They worry that even the underwhelming gains made by low-income people in the last decade are fragile and that people only recently brought into the workforce could be the first fired when a recession hits. ”

    Trump does not work for the working class American. He’s done the exact opposite of help them. Modern US corporations, including Apple, continue to soil the legacy that Apple’s founders created — enriching the few, outsourcing all production to China, and greenwashing their global money laundering schemes with full Wall Street and Washington DC support. The swamp isn’t drained.

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