Most US equities are down after a long run of surging from last week as most investors lay low after the tremendous week. A big percentage of the surge was the immense market control and the presence of the tech sector spearheaded by market leaders such as Amazon, Facebook, Alphabet, and Apple; now, Apple is losing some momentum after the atypical downgrade.
The drop continues even at early Tuesdays, some of the losses are funneled on the geopolitical doubts and turbulence from the former FBI boss James Comey’s testimony this week and on the brimming UK election. The most intriguing were the Apple downgrade from Pacific Crest on the start of the week, causing some declines lingering till early Tuesdays.
The S&P 500 was down by a solid 0.1% at 2,438.61 in the midday trading at 2.50 points; the materials and utility sector are weighing down the most. The Dow Jones Industrial was also caught losing some momentum and fell by 22 points or 0.1% to 21,154.00, and Nasdaq also joining the slump dipping by 0.1% to 5,879.50 or 1.25 points.
Chief investment officer at Cabot Wealth Management, Rob Lutts said that "Clearly the market is more expensive compared to a few years ago, but earnings have justified those valuations," while Peter Cardillo of First Standard Financial noted that "The averages are making new highs but that's because of a handful of stocks. If you take those out, we'd probably be lower,"
More Figures Down
Gold’s futures were also significantly down along with the USDJPY; the decrease was mainly about the brewing concerns between the US and Qatar and a bunch more of Middle Eastern Unions. According to Hantec Markets’ analyst Richard Perry; Geopolitical concerns “helping to drive safe haven flow and curb risk appetite”. Other key factors that drove the slump were several events that are marked this week; the UK election, the European Central bank’s announcement, and the impending Comey testimony.
On the other hand, oil futures were also shrinking on the start of the week; Brent crude was trading below $50 a barrel after decreasing by 1.2% to $49.37 and West Texas Intermediate is continuing its slump from last week’s 4.3% decline and adds more 0.9% from this week totaling to $47.22 a barrel.
Apple’s stock was down after a surprising downgrade from the Pacific Crest analyst Andy Hargreaves; he said that "We believe AAPL anticipates strong performance in the iPhone 8 cycle, while providing relatively little weight to risks through the cycle or the potential for iPhone sales to decline in FY19," he also noted that "around gross margins, elasticity, supply issues, or the likelihood for declines beyond the iPhone 8 cycle."
This has been the fifth time that the company received a hold rating according to TipRanks; the tech giant suffered the downgrade after last week’s announcement of the activities they’ll be having on this year’s WDDC. Pacific Crest noted that "We recommend large-cap tech investors use proceeds from sales of AAPL to purchase GOOGL (Overweight, PT $1,100), which we believe
for your round-the-clock market update! We provide you with the latest news surrounding Forex, commodities, automobile, consumer, financial, economy, and technology. Never miss any news beat! Subscribe now!