Apple moves closer to erasing 2022 losses on better-than-feared inflation data

Apple is closing in on erasing its losses for the year as better-than-feared inflation data fueled a rally in the stock market Wednesday.

Inflation

The headline consumer price index (CPI) for July rose 8.5% year over year, remaining at a near 40-year high. Economists surveyed by Dow Jones were expecting increases of 8.7%.

Bloomberg News:

The iPhone-maker gained as much as 2.4% to $168.83 as investors piled back into stocks on bets the Federal Reserve could dial back the size of future interest-rate hikes after the July consumer price index showed a deceleration in growth from the prior month. Megacap tech stocks all rallied with Meta Platforms Inc. and Netflix Inc. leading the pack on a more than 5% gain each, while the Nasdaq 100 Index is 2.6% higher.

Since bottoming in mid-June, Apple’s shares have surged about 30%, outpacing the S&P 500 Index and the Nasdaq 100. That’s put Apple back on top as the world’s most valuable company and within sight of turning positive for the year. Apple is now down just 5% in 2022, compared with a drop of 18% for the Nasdaq 100.

About 96% of analysts covering the stock recommend investors buy or hold on to their positions, according to data compiled by Bloomberg, with an average forecast of a 7% gain in its shares over the next 12 months.

MacDailyNews Take: The hope (by the equities markets, at least) is that the Fed’s next interest-rate hike will be a 0.50 percentage point hike, not a 0.75 move. Hence, today’s rally.

In January, 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… [which] 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. mel gross = another historically ignorant leftie fool…

      By reducing government spending instead of raising it he was able to grow the private sector resulting in the Roaring 20s joyfest.

      FDR exacerbated a recession until it was The Great Depression by doing just the opposite: massive government spending programs, some of which we’re still stuck with today and the Depression lasted for over a decade into WW2.

      1. Firstfuk demonstrates again that when he can’t persuade with data and logic, he’ll control the narrative by being a fsking bully. Way to ruin a broken google ad-pushing website to further irrelevance

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