Even as Apple deals with rampant U.S. inflation, waning consumer confidence, a strengthening dollar, and quixotic COVID lockdowns in China, its share price has surged in recent weeks and is heading for its biggest monthly gain in almost two years, up 15% in July.
Subrat Patnaik for Bloomberg News:
The shares have beaten those of Microsoft Corp., Alphabet Inc. and Amazon.com Inc. this month, and also are dwarfing gains in the S&P 500 and Nasdaq 100 indexes. With the US flirting with a recession, investors are gravitating toward a household name they’re comfortable with.
“Apple is outperforming because it’s a place of safety for investors,” said Gene Munster, who covered Apple and Google during his 21-year career as an analyst at Piper Jaffray Cos. before co-founding venture-capital firm Loup Ventures. “Every company will be impacted by the upcoming slowdown. Apple should fare better.”
The rally means investor expectations are high for the company’s quarterly earnings, due after the market close Thursday.
MacDailyNews Take: From Gene’s lips to Mr. Market’s ears!
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Based on the comments on this site, I’m sure credit for this will go to Tim Cook and/or President Biden, right? After all, they’re responsible for everything that ever goes wrong, correct??
Market downturns ALWAYS have upticks. If you think the current gains (stocks) is a matter of policy, and criticism is irrelevant or misplaced, you are embracing the immediate (that likely fits your narrative). Bond markets are the REAL canary in the coal mine and they always point to the foundational reality. “They” aren’t that “happy.”