Wall Street’s major indexes climbed on Tuesday as investors scooped up shares of Apple, other tech names, and energy companies that were beaten down in a rout last week on worries over rampant U.S inflation and a looming recession.
All the 11 major S&P sectors advanced in the short-term rebound. The S&P 500 and the Nasdaq are still in bear market, with the benchmark index down 21.6% from its record closing high on Jan. 3.
“We are still viewing this as a rally in a bear market. Right now this is just another one-day wonder and investors have seen this movie before,” said Ken Mahoney, chief executive officer of Mahoney Asset Management.
Energy was the top gainer, up 4.3%, after losing more than 17% last week. Apple Inc and Tesla Inc jumped 3.8% and 10.8%, respectively, boosting the S&P 500 and tech-heavy Nasdaq.
The S&P 500 index had in the previous session posted its biggest weekly percentage drop since March 2020 as investors feared aggressive steps by global central banks to fight inflation would slow economic growth.
Markets have priced in further rate hikes in July and September amid growing doubts if the U.S. central bank can engineer a soft landing for the economy and avoid a recession.
MacDailyNews Take: At the end of April, Apple’s board of directors authorized an increase of $90 billion to the existing share repurchase program.
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MDN, irrelevant as ever. This is late June, not April. Investors have priced in management plans months ago. So while you spent two months hosting politically charged misinformation attempting to tie international stock market conditions to the election of one country’s chief executive, smart investors know that market volatility is actually most influenced by supply chain woes, foreign war driving up fossil fuel prices, and a very large amount of profit taking from a very overpriced market that was more than ripe for a correction.
The USA does not need daily tweets to stimulate the market. As everyone can see, the fundamentals remain solid. So stop the bipolar thinking.
I believe that the point is that there has been $90 Billion (with a “B”) of purchasing power sitting at the sidelines waiting to scoop up some cheap Apple shares when available … #BipolarPotMeetKettle
$90B sounds like a lot of money until you look at AAPL trading volumes. It is not uncommon for 100,000,000 or more shares to trade hands in a day. If Apple blew its allocation all at once, it would fundamentally change the market value a few percent.
This is why a company buying back its own shares is akin to mismanagement at best, possibly malfeasance. Long term investors expect the management team to maximize efficiency of the core business and innovate to create new business tomorrow. They do not appreciate self-interested executives pretending to be day traders, trying to time the market and focusing on short term stock values.
Notice how Apple and most other companies reveal only the legal minimum of how much investor capital they have allocated to their stock market gaming, but never report their returns on investment. The real reason corporations engage in self-buyback is to launder cash stashed overseas. If they reported it as profit where it was actually earned and offered it to investors straightaway as would be traditional, it might be taxable. If instead a multinational borrows money (or issues bonds), it can play a round robin payment scheme whereby on paper, the profits don’t exist, instead cash is used for “business operations” through shell companies all around the world, with payments timed to maximize payout when executive bonuses are due. Gotta goose the stock market when the bonus calculations are made. If you miscalculate, you do what Jobs did: backdate the bonus checks. Cook learned from a (fine paying) master.
Apple has all kinds of cash to crown its executives, it made multimillionaires of several second rate managers, but it treats its retail employees like fast food workers and offshores all manufacturing to 3rd parties. “Those jobs aren’t coming back.”
Ironic this site supports such corporate treason while blaming every piece of bad economic news on anyone with a (D) after their name, or unions, or rank&file Apple employees, or someone who doesn’t look like them. All corporations of every political persuasion have screwed you over and you still think there is a difference between tweedle dee and tweedle dum. You have been played for a fool. Keep hyping the stick while hating everyone who works there, MFDN!
It’s gonna go lower. Once emboldened CCP China invades Taiwan (home of the worlds high tech processor fab TSMC) then the market will find fresh new lows. Hold tight as energy cost continue to crush our economy. Mean while CCP China is firing up coal plants and buy Russian oil as USA policy beats a brick wall with an old smelly fish.