U.S. stock futures rebound after flirting with bear market

U.S. stock futures rose on Monday, helped by a bounce in growth stocks, including a slight increase for Apple, after the benchmark S&P 500 hovered near a grim market milestone (bear market) at the end of last week…

Is Apple stock primed for a big move?

Reuters:

U.S. stock indexes plunged further last week as dismal forecasts from Walmart Inc. and other retailers added to worries about surging inflation and its impact on consumers and economic growth.

The benchmark S&P 500 fell over 20% from its Jan. 3 record closing high at one point on Friday, pushing it to the brink of confirming a bear market. The index is now down 18.7% from its all-time closing high.

Beaten-down megacap growth stocks including Apple Inc, Microsoft Corp, Tesla Inc, Alphabet Inc, Meta Platforms, and Amazon.com gained between 0.7% and 1.3%.

The Federal Reserve’s May meeting minutes, due on Wednesday, will be closely parsed for signs on how aggressively the U.S. central bank is planning to raise interest rates. Money markets are pricing in 50-basis point rate hikes by the Fed in June and July.

MacDailyNews Take: Sub-$140 for Apple is very nice deal for those who can accumulate shares for the longer term.

‘Tis best to get a handle on inflation, if you know how, while you still can.MacDailyNews, May 11, 2021

Earlier this year, Interactive Brokers founder Thomas Peterffy said, “Inflation is 7% — 1% or 2% [in interest rate hikes] doesn’t mean anything. If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”

Inflation is repudiation. — Calvin Coolidge

When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan

Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult.MacDailyNews, May 11, 2022

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4 Comments

  1. Uh huh, for a hot second. Let’s see how they do next week, next month. The only problem is nobody has any place to hide…Joe Biden will take your money one way or another…they are EXPERTS at it, and the people that vote for them think they deserve to have all of it, to make the world perfect for them, finally.

    1. The bull is still on the prowl. The US stock market reacted exactly as it should have for the Fed rate change. As supply chains get fixed and Putin isolates himself into an irrelevant risk, the democracies of the world will continue to fire on all cylinders to rebuild aging infrastructure, replace dirty imported fuels, and diversify manufacturing options.

      Despite this site’s obsession with stock market prices and a handful of personalities, the economy is measured in other ways. Jobs are plentiful and wages are increasing. Consumers have significant savings and demand is resilient. The western democracies are wisely collaborating to contain conflicts and ensure health and safety for their citizens, pivoting away from those nondemocratic nations that are not reliable. This change will take years but it’s the best possible outcome after decades of attempting to placate the blowhard regimes around the world. It is unclear why the self-proclaimed leader of the free world is upset that it remains the richest and most influential economic power by far, having fully bounced back from the pandemic with only a bit of market volatility. Stop attempting to make a mountain of a mole hill.

      The economy of the world doesn’t align with your election cycles any more than the sun revolves around the queen. Get a clue already.

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