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13800.0
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2023-09-11 00:00:00 UTC
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GlobalFoundries opens $4 billion Singapore fabrication plant
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AAPL
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https://www.nasdaq.com/articles/globalfoundries-opens-%244-billion-singapore-fabrication-plant
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nan
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nan
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SINGAPORE Sept 12 (Reuters) - GlobalFoundries GFS.O, one of the world's top five largest contract chipmakers, launched a $4 billion fabrication plant in Singapore on Tuesday, as part of a major global manufacturing expansion.
With its new 23,000 square meters (247,570 square feet)facility, the U.S chipmaker said it will produce an additional 450,000 300mm wafers per year and create 1,000 jobs.
Its Singapore operations, which serve 200 clients worldwide, produce 300mm wafers and 200mm wafers, which are used in cars and 5G technology.
Some of GlobalFoundries' biggest clients include Qualcomm QCOMO.O, which said on Monday it had signed a deal with Apple APPL.O to supply 5G chips until at least 2026.
(Reporting by Fanny Potkin; Editing by Richard Chang)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SINGAPORE Sept 12 (Reuters) - GlobalFoundries GFS.O, one of the world's top five largest contract chipmakers, launched a $4 billion fabrication plant in Singapore on Tuesday, as part of a major global manufacturing expansion. Some of GlobalFoundries' biggest clients include Qualcomm QCOMO.O, which said on Monday it had signed a deal with Apple APPL.O to supply 5G chips until at least 2026. (Reporting by Fanny Potkin; Editing by Richard Chang) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With its new 23,000 square meters (247,570 square feet)facility, the U.S chipmaker said it will produce an additional 450,000 300mm wafers per year and create 1,000 jobs. Its Singapore operations, which serve 200 clients worldwide, produce 300mm wafers and 200mm wafers, which are used in cars and 5G technology. Some of GlobalFoundries' biggest clients include Qualcomm QCOMO.O, which said on Monday it had signed a deal with Apple APPL.O to supply 5G chips until at least 2026.
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SINGAPORE Sept 12 (Reuters) - GlobalFoundries GFS.O, one of the world's top five largest contract chipmakers, launched a $4 billion fabrication plant in Singapore on Tuesday, as part of a major global manufacturing expansion. Its Singapore operations, which serve 200 clients worldwide, produce 300mm wafers and 200mm wafers, which are used in cars and 5G technology. (Reporting by Fanny Potkin; Editing by Richard Chang) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SINGAPORE Sept 12 (Reuters) - GlobalFoundries GFS.O, one of the world's top five largest contract chipmakers, launched a $4 billion fabrication plant in Singapore on Tuesday, as part of a major global manufacturing expansion. With its new 23,000 square meters (247,570 square feet)facility, the U.S chipmaker said it will produce an additional 450,000 300mm wafers per year and create 1,000 jobs. Its Singapore operations, which serve 200 clients worldwide, produce 300mm wafers and 200mm wafers, which are used in cars and 5G technology.
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13801.0
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2023-09-11 00:00:00 UTC
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Dow Movers: AAPL, DOW
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-aapl-dow
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nan
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nan
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In early trading on Monday, shares of Dow topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.2%. Year to date, Dow registers a 7.9% gain.
And the worst performing Dow component thus far on the day is Apple, trading down 0.3%. Apple is showing a gain of 36.7% looking at the year to date performance.
Two other components making moves today are Cisco Systems, trading down 0.0%, and MMM, trading up 1.2% on the day.
VIDEO: Dow Movers: AAPL, DOW
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: AAPL, DOW The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Dow topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.2%. And the worst performing Dow component thus far on the day is Apple, trading down 0.3%.
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VIDEO: Dow Movers: AAPL, DOW The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Dow topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.2%. Year to date, Dow registers a 7.9% gain.
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VIDEO: Dow Movers: AAPL, DOW The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Dow topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.2%. And the worst performing Dow component thus far on the day is Apple, trading down 0.3%.
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VIDEO: Dow Movers: AAPL, DOW The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Apple, trading down 0.3%. Apple is showing a gain of 36.7% looking at the year to date performance.
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13802.0
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2023-09-11 00:00:00 UTC
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Will U.S.-China Tech Squabbles Threaten Tech Stocks?
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AAPL
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https://www.nasdaq.com/articles/will-u.s.-china-tech-squabbles-threaten-tech-stocks
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nan
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nan
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Several mega-cap technology stocks and suppliers to Apple (AAPL) tumbled last week after the Chinese government banned iPhones from government-backed agencies and state companies, thereby threatening iPhone sales. Also, suppliers to Huawei Technologies came under pressure last week, with some U.S. lawmakers calling for a halt to all U.S. exports to the company.
Apple lost more than -5% last week on news that the Chinese government plans to expand a ban on using iPhones in sensitive departments to government-backed agencies and state companies. The action by China threatens to erode Apple’s position in China, a market where Apple receives about 20% of its yearly revenue. However, most analysts believe China is unlikely to completely ban iPhones as the country still benefits greatly from Apple’s presence.
Shares of Qualcomm (QCOM), the world’s biggest supplier of smartphone chips, slumped more than -7% last week on the China news. A widening ban in China on iPhones undercut the stock since Qualcomm is one of the iPhone's biggest vendors. Also, news that U.S. lawmakers are scrutinizing suppliers to Huawei Technologies weighed on Qualcomm as it provides Huawei with older generation 4G chips. However, Qualcomm received a boost today after Apple extended its contract with the company to provide it with modem semiconductor chips for three more years.
Other global chipmakers are also under pressure due to the ongoing U.S.-China tech squabbles. SK Hynix, a key supplier to both Apple and Nvidia (NVDA), dropped more than -6% last week on the revelation that some of its products were found inside Huawei Technologies’ Mate 60 Pro smartphone. Billionfold Asset Management said the slump in SK Hynix reflects “the fear of potential U.S. sanctions” against the company after some of its chips were found in the Huawei smartphone. SK Hynix gets about a third of its revenue from China.
Despite U.S. policy efforts aimed at ending reliance on the strategic semiconductor industry from foreign companies, the U.S. still gets the bulk of its chips from foreign suppliers. Even after increased import and export curbs, China still accounted for 17% of total chip imports to the U.S. in 2022, down from 25% from 2018, according to Bloomberg Intelligence. The majority of mega-cap chip stocks in the U.S. have registered an average increase of almost 50% in the weight of China among their suppliers over the past four years. China’s export restrictions are a key risk to the U.S. semiconductor industry, even more than U.S. export curbs because major U.S. chip manufacturers have higher exposure to China on the supply side.
More Stock Market News from Barchart
2 Stocks to Buy Now and Hold for 5+ Years
1 Dirt-Cheap Industrial Stock for Deep Value Investors
Stocks Climb on Strength in Tech Stocks and Favorable Chinese News
Markets Today: Stock Index Futures Climb on Strength in Tech Stocks and Positive China News
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Several mega-cap technology stocks and suppliers to Apple (AAPL) tumbled last week after the Chinese government banned iPhones from government-backed agencies and state companies, thereby threatening iPhone sales. Apple lost more than -5% last week on news that the Chinese government plans to expand a ban on using iPhones in sensitive departments to government-backed agencies and state companies. SK Hynix, a key supplier to both Apple and Nvidia (NVDA), dropped more than -6% last week on the revelation that some of its products were found inside Huawei Technologies’ Mate 60 Pro smartphone.
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Several mega-cap technology stocks and suppliers to Apple (AAPL) tumbled last week after the Chinese government banned iPhones from government-backed agencies and state companies, thereby threatening iPhone sales. The action by China threatens to erode Apple’s position in China, a market where Apple receives about 20% of its yearly revenue. More Stock Market News from Barchart 2 Stocks to Buy Now and Hold for 5+ Years 1 Dirt-Cheap Industrial Stock for Deep Value Investors Stocks Climb on Strength in Tech Stocks and Favorable Chinese News Markets Today: Stock Index Futures Climb on Strength in Tech Stocks and Positive China News On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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Several mega-cap technology stocks and suppliers to Apple (AAPL) tumbled last week after the Chinese government banned iPhones from government-backed agencies and state companies, thereby threatening iPhone sales. China’s export restrictions are a key risk to the U.S. semiconductor industry, even more than U.S. export curbs because major U.S. chip manufacturers have higher exposure to China on the supply side. More Stock Market News from Barchart 2 Stocks to Buy Now and Hold for 5+ Years 1 Dirt-Cheap Industrial Stock for Deep Value Investors Stocks Climb on Strength in Tech Stocks and Favorable Chinese News Markets Today: Stock Index Futures Climb on Strength in Tech Stocks and Positive China News On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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Several mega-cap technology stocks and suppliers to Apple (AAPL) tumbled last week after the Chinese government banned iPhones from government-backed agencies and state companies, thereby threatening iPhone sales. Also, suppliers to Huawei Technologies came under pressure last week, with some U.S. lawmakers calling for a halt to all U.S. exports to the company. For more information please view the Barchart Disclosure Policy here.
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13803.0
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2023-09-11 00:00:00 UTC
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Time to Buy Apple or Qualcomm Stock for Their Renewed Partnership
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AAPL
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https://www.nasdaq.com/articles/time-to-buy-apple-or-qualcomm-stock-for-their-renewed-partnership
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nan
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nan
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The renewal of Apple AAPL and Qualcomm’s QCOM partnership is highlighting the start of this week’s trading session as investors await CPI data on Wednesday.
Easing inflation has been kind to Apple’s stock which has climbed +38% this year versus Qualcomm’s virtully flat performance. Still, Qualcomm’s stock spiked roughly +4% today with Apple's stock up +0.66%. The continuation of their partnership is reassuring to Qualcomm investors as it was scheduled to end this year but has now been extended to 2026.
Of course, there are rising concerns that the Chinese goverment will continue its efforts to ban iPhones domestically which will naturally affect Qualcomm as well. However, momentum is building for both tech giants with Apple scheduled to release its iPhone 15 on Tuesday and Qualcomm now solidified with providing its modem chips for the foreseeable future.
Image Source: Zacks Investment Research
Partnership Growth (EPS)
Starting their partnership in 2019, Apple and Qualcomm have experienced steady growth but are expecting dips in their top and bottom lines this year.
Mostly attributed to inflationary pressures and a softer recovery in China, Qualcomm's fiscal 2023 results are being affected the most. With that being said, Qualcomm is coming off a record year that saw earnings at $12.53 per share with FY23 EPS projected to drop to $8.31 a share.
Qualcomm’s FY24 earnings are forecasted to stabilize and rise 10% to $9.13 per share. Plus, FY24 projections would still represent 134% EPS growth since the company launched its partnership with Apple and posted earnings of $3.54 a share in 2019.
Image Source: Zacks Investment Research
As for Apple, annual earnings are expected to dip -1% this year but rebound and rise 9% in FY24 to $6.60 per share. More impressive, FY24 projections would represent 122% EPS growth since its Qualcomm partnership with Apple’s 2019 earnings at $2.97 a share.
Image Source: Zacks Investment Research
Partnership Performance
Since their partnership officially started in April of 2019, Apple’s stock has now skyrocketed +265% with Qualcomm shares soaring +90%. Both have outperformed the Nasdaq’s +70% and the S&P 500's +54% during this time span.
Even better, when including dividends, Apple's total return is +278% with Qualcomm at +111% to easily top the broader indexes.
Image Source: Zacks Investment Research
Dividend Boost
As forementioned in their total returns, Apple and Qualcomm have continued to boost their dividends since their partnership started. Qualcomm certainly stands out with a 2.91% annual yield that towers over the S&P 500’s 1.36% average.
Image Source: Zacks Investment Research
While Apple offers a modest 0.54% dividend yield, it has increased in each of the last five years at a 6.07% growth rate which is just above Qualcomm’s 5.35%.
Image Source: Zacks Investment Research
Bottom Line
Considering their stock performances and growth since partnering, Apple and Qualcomm have complemented each other quite well. For now, Apple and Qualcomm's stock both land a Zacks Rank #3 (Hold).
While there are still fears of a further crackdown on iPhones in China, these companies should continue to mutually benefit each other and reward longer-term investors.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The renewal of Apple AAPL and Qualcomm’s QCOM partnership is highlighting the start of this week’s trading session as investors await CPI data on Wednesday. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. However, momentum is building for both tech giants with Apple scheduled to release its iPhone 15 on Tuesday and Qualcomm now solidified with providing its modem chips for the foreseeable future.
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The renewal of Apple AAPL and Qualcomm’s QCOM partnership is highlighting the start of this week’s trading session as investors await CPI data on Wednesday. Image Source: Zacks Investment Research Partnership Growth (EPS) Starting their partnership in 2019, Apple and Qualcomm have experienced steady growth but are expecting dips in their top and bottom lines this year.
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The renewal of Apple AAPL and Qualcomm’s QCOM partnership is highlighting the start of this week’s trading session as investors await CPI data on Wednesday. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Partnership Growth (EPS) Starting their partnership in 2019, Apple and Qualcomm have experienced steady growth but are expecting dips in their top and bottom lines this year.
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The renewal of Apple AAPL and Qualcomm’s QCOM partnership is highlighting the start of this week’s trading session as investors await CPI data on Wednesday. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Partnership Growth (EPS) Starting their partnership in 2019, Apple and Qualcomm have experienced steady growth but are expecting dips in their top and bottom lines this year.
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13804.0
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2023-09-11 00:00:00 UTC
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These are the Top 3 Sectors for 3rd Quarter Profit Growth
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AAPL
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https://www.nasdaq.com/articles/these-are-the-top-3-sectors-for-3rd-quarter-profit-growth
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nan
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nan
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The Q2 earnings season is all but finished, and the Q3 is fast approaching. This means it's time to focus on which sectors and companies are in the best position to deliver outperformance and higher share prices. The latest data from FactSet is telling and suggests another mixed season is upon us.
Starting at the top, the consensus estimate for the 3rd quarter bounced from a low in early September and is hovering above 0.0%. The latest figure is 0.5% earnings growth, which is significant for 2 reasons. The 1st is that the S&P 500 (NYSEARCA: SPY) is exiting its earnings trough, which is a tailwind for the market. The 2nd is that the final tally for Q3 earnings growth will likely be higher than now.
The S&P 500 index tends to outperform its estimates 100% of the time, and strength over the past few quarters has run in the mid-single digits range. That trend should continue. In that scenario, the S&P 500 market will have a tailwind to support it and outperformance to lead it higher, but not all sectors will post strength.
Communications Services Is the Hot Sector For Q3
The Communications Services sector will be the hot sector this quarter, but even it will post mixed results on a business-to-business basis. The sector is expected to grow by 32% compared to last year, and the estimates are rising. The consensus figure is up 700 basis points over the past 2 months, with significant strength in FAANG names.
Names like Meta Platforms (NASDAQ: META), Alphabet (NASDAQ: GOOG), and Netflix (NASDAQ: NFLX) are expected to post the largest gains and have seen the most significant revisions. Factoring them out of the equation greatly reduces the outcomes. Other names are expected to grow earnings at much slower high-single and low-double-digit paces.
Meta alone is expected to see its earnings more than double; Alphabet’s will grow about 35%, and the 2 stocks make up nearly 50% of the sector. On the other hand, Verizon (NYSE: VZ) and AT&T (NYSE: T) will see their earnings shrink.
Consumer Discretionary Continues to Grow
Despite signs of weakness in the retail world, the Consumer Discretionary Sector continues to grow. The sector is expected to post earnings growth near 21%, and the estimates are rising. The consensus figure is up 850 basis points since the start of the reporting period and will likely move higher. However, only a few companies drive the strength, such as Amazon (NASDAQ: AMZN) and Tesla (NASDAQ: TSLA).
Amazon is the single largest member of the ETF at nearly 25%, and it is the #1 individual company regarding growth and upward revisions. The # 2 holding is Tesla, and it is also leading the sector regarding earnings growth and upward revisions. Other areas of strength include fast-food leader McDonald’s (NYSE: MCD) and off-price retailer TJX Companies (NYSE: TJX). Home Depot (NYSE: HD) and Lowe’s (NYSE: LOW) earnings are expected to decline but may come in better than expected.
Information Technology and AI Will Be Strong
Information Technology will be the 5th fastest-growing sector, but it makes this list because it is the 3rd hottest sector regarding upward revisions. The analysts have upgraded the outlook by 380 basis points over the last few months, driven by strength in NVIDIA (NASDAQ: NVDA) and other AI powerhouses.
The top-10 holdings of this sector are a who’s-who of blue-chip technology leaders with a significant presence in AI. All of them should be expected to post strength.
The Energy Sector Could Come to a Boil in Q3
The Energy Sector is expected to post the largest YOY earnings decline, and the estimates are falling but setting the sector up for outperformance. The oil price has risen steadily throughout the quarter despite rising production from non-OPEC members.
That and the pace of demand growth should lead to solid results this quarter, a return to earnings growth soon, and another round of windfall profits, dividends, and share repurchases in 2024. The price of WTI, the Energy Sector SPDR, and many of the stocks within the group are firing Golden Crosses.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This means it's time to focus on which sectors and companies are in the best position to deliver outperformance and higher share prices. The S&P 500 index tends to outperform its estimates 100% of the time, and strength over the past few quarters has run in the mid-single digits range. The analysts have upgraded the outlook by 380 basis points over the last few months, driven by strength in NVIDIA (NASDAQ: NVDA) and other AI powerhouses.
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Communications Services Is the Hot Sector For Q3 The Communications Services sector will be the hot sector this quarter, but even it will post mixed results on a business-to-business basis. The consensus figure is up 700 basis points over the past 2 months, with significant strength in FAANG names. Names like Meta Platforms (NASDAQ: META), Alphabet (NASDAQ: GOOG), and Netflix (NASDAQ: NFLX) are expected to post the largest gains and have seen the most significant revisions.
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Communications Services Is the Hot Sector For Q3 The Communications Services sector will be the hot sector this quarter, but even it will post mixed results on a business-to-business basis. The sector is expected to post earnings growth near 21%, and the estimates are rising. The Energy Sector Could Come to a Boil in Q3 The Energy Sector is expected to post the largest YOY earnings decline, and the estimates are falling but setting the sector up for outperformance.
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In that scenario, the S&P 500 market will have a tailwind to support it and outperformance to lead it higher, but not all sectors will post strength. The sector is expected to post earnings growth near 21%, and the estimates are rising. All of them should be expected to post strength.
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13805.0
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2023-09-11 00:00:00 UTC
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Traders Beware of Potential Post-Options Expiration Swoon
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AAPL
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https://www.nasdaq.com/articles/traders-beware-of-potential-post-options-expiration-swoon
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nan
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nan
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News that China banned government employees from bringing iPhones into government buildings pressured markets during the holiday-shortened week. The following day, markets saw more pain after reports the iPhone ban could also extend to government-backed companies. This is important because when a market-cap behemoth like Apple (AAPL) sees a downside move of -6.5% in two days, it can’t help but damage the broader indices.
Apple’s current weightings are 7.04% in the SPDR S&P 500 ETF Trust (SPY – 445.52) and 10.85% in the Invesco QQQ Trust ETF (QQQ – 372.58), and that’s after the Nasdaq-100 Index (NDX) special rebalance in late July. Moreover, if China is willing to go after Apple, investors must consider the risks this could present to other companies. After all, CEO Tim Cook said just six months ago that Apple and China had a symbiotic relationship.
“While it's well known we're in a seasonally tumultuous period, there still are opportunities afoot for nimble traders, and one could be on the horizon for the bulls as the conditions are ripe for a rally into mid-September.”
- Monday Morning Outlook, August 28, 2023
In my last commentary, reporters and strategists were racing to be the first to break down September monthly return data for the S&P 500 Index (SPX – 4,457.49). It’s also not surprising that we found resistance near the range I outlined as a target for the SPX back in July. The 4,536 level is the SPX’s September 2021 closing high and the low-end of the range that marked the 2022 bear market breakdown.
One concern for bulls now is we’ve officially put in a lower high. While this doesn’t necessarily kill the bounce, it warrants caution. Furthermore, the SPX is now sandwiched between its 20- and 50-day moving averages, and is below double the 2020 March closing low as we head into options expiration week (OPEX). In other words, the technical backdrop has the potential to produce choppy market action, shaking bears and bulls out of position as price searches for direction.
If that wasn’t enough, this week is jam-packed with economic data that could move markets. After another tame consumer price index (CPI) report in August and softening jobs data during the summer, market participants lowered expectations of a rate hike in September to 8%. However, a surprise to the upside for inflation data could see those tides turn quickly.
Federal Reserve Chairman Jerome Powell was steadfast in leaving the door open for a rate hike during the September Federal Open Market Committee (FOMC) decision. Two leading indicators present some concerns: Jobless claims have fallen in the past few weeks, so the softening everyone was betting on is strengthening; and while the oil weight in CPI data is only 7%, we’ve seen it rally 11% since the committee last met. So, at the very least, CPI won’t have the drop-off effects from oil it’s been benefiting from.
Looking at the open interest configuration heading into OPEX, critical overhead strikes to watch on the SPY are the 450- and 460-strike call walls. These levels likely cap price action to keep the SPY within the range I discussed two weeks ago. Additionally, the first put wall support resides at the 440-strike, which coincides with the 80-day moving average -- where we found support in August.
If this level were to break, we are at risk of a swift move to the 430-strike, where we see the second largest concentration of put open interest for September expiration, concurring with the August 2022 peak. It also should be noted that we are seeing a concentration in put exposure through October expiration, indicating options traders are betting on the post-OPEX decline.
Seasonally, we see a downturn post-OPEX in the month of September, with OPEX typically marking the tipping point for seasonal drifts before finding a low in the first two weeks of October. The weeks following the large September quarterly expiration are why September is the poorest-performing month for equities.
However, this also presents opportunities for active traders as gyrations give way to potentially wild swings until we see the prototypical Q4 rally into year-end. If history rhymes, we’ll likely see sideways -- or even positive -- price action into Friday, followed by a downturn into early to mid-October. If it doesn’t, this would probably catch a lot of traders offside, as this is well-known data, and a directional move higher could break equities out of the summer range.
In the past few weeks, we’ve discussed the 10-year Treasury yield and its implications on equities. Yet, this week, I want to look at the U.S. Dollar Index (DXY – 105.09). Whereas rates and equities can move higher in conjunction for extended periods, it’s rare for the dollar and equities to be correlated for long periods. For instance, the dollar low in July coincided with the SPX peak. Since then, the DXY has been on a relentless rally and has blown past potential resistance at the downtrend of the March and May 2023 peaks that formed.
The DXY stuttered at those May highs, another possible spot for resistance, only to break above it last week. However, we are now at $105 on the basket, which was a considerable pivot point range in 2022 that marked multiple peaks and troughs. It’d be wise to watch the dollar over the next week or two, as it may be your best indicator for market direction.
Looking at breadth measures, it’s really a tale of two stories. The SPX advanced/decline line has thus far held its breakout from late June. However, the NDX's advanced/decline line continues to deteriorate, breaking its lows and failing on a retest of them. When looking under the hood, many names in the NDX have yet to break out from the ranges they’ve been stuck in since last spring.
Only a handful of large-cap tech leaders went on to test their prior all-time highs. Furthermore, the leading sector in technology, semiconductors, is battling overhead supply at the $155-160 resistance zone. If semiconductors can’t break out and continue to lead, bulls need to see another sector take the reins, like software or cyclical sectors, for the rally to carry on.
“However, coincident with last week’s rally, the SPX component 10-day, buy (to open), put/call volume ratio finally rolled over. Together with the improving technical backdrop, a continued unwind of the extreme in pessimism could have bullish implications.”
- Monday Morning Outlook, September 5, 2023
The unwind in excessive pessimistic sentiment in the SPX components' 10-day buy-to-open put/call ratio has slowed over the past week as market participants seemingly are positioning for a potential selloff. With the indicator not that far off the highs and hovering in the extreme pessimism territory that depicts bullish potential, it wouldn’t take much amidst the current market backdrop to present another contrarian opportunity.
Risks are present for a swoon post-expiration, so it might be wise to remain more cautious this week with new longer-term positions or even lighten up on some positioning if history wants to repeat. Another option is to add some short-term hedges this week, to protect gains against any potential downside risk while holding on to your current positions. That is, at least until we see which way the market breaks post-September expiration.
Matthew Timpane is a Senior Market Analyst at Schaeffer's Investment Research.
Continue Reading:
Indicator of the Week: History: Don't Count Out a September Rally Yet
The Week Ahead: Retail Sales Data, CPI Reading on Tap Next Week
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is important because when a market-cap behemoth like Apple (AAPL) sees a downside move of -6.5% in two days, it can’t help but damage the broader indices. “While it's well known we're in a seasonally tumultuous period, there still are opportunities afoot for nimble traders, and one could be on the horizon for the bulls as the conditions are ripe for a rally into mid-September.” - Monday Morning Outlook, August 28, 2023 In my last commentary, reporters and strategists were racing to be the first to break down September monthly return data for the S&P 500 Index (SPX – 4,457.49). After another tame consumer price index (CPI) report in August and softening jobs data during the summer, market participants lowered expectations of a rate hike in September to 8%.
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This is important because when a market-cap behemoth like Apple (AAPL) sees a downside move of -6.5% in two days, it can’t help but damage the broader indices. Furthermore, the SPX is now sandwiched between its 20- and 50-day moving averages, and is below double the 2020 March closing low as we head into options expiration week (OPEX). After another tame consumer price index (CPI) report in August and softening jobs data during the summer, market participants lowered expectations of a rate hike in September to 8%.
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This is important because when a market-cap behemoth like Apple (AAPL) sees a downside move of -6.5% in two days, it can’t help but damage the broader indices. “While it's well known we're in a seasonally tumultuous period, there still are opportunities afoot for nimble traders, and one could be on the horizon for the bulls as the conditions are ripe for a rally into mid-September.” - Monday Morning Outlook, August 28, 2023 In my last commentary, reporters and strategists were racing to be the first to break down September monthly return data for the S&P 500 Index (SPX – 4,457.49). Together with the improving technical backdrop, a continued unwind of the extreme in pessimism could have bullish implications.” - Monday Morning Outlook, September 5, 2023 The unwind in excessive pessimistic sentiment in the SPX components' 10-day buy-to-open put/call ratio has slowed over the past week as market participants seemingly are positioning for a potential selloff.
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This is important because when a market-cap behemoth like Apple (AAPL) sees a downside move of -6.5% in two days, it can’t help but damage the broader indices. Two leading indicators present some concerns: Jobless claims have fallen in the past few weeks, so the softening everyone was betting on is strengthening; and while the oil weight in CPI data is only 7%, we’ve seen it rally 11% since the committee last met. If this level were to break, we are at risk of a swift move to the 430-strike, where we see the second largest concentration of put open interest for September expiration, concurring with the August 2022 peak.
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13806.0
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2023-09-11 00:00:00 UTC
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Apple ETFs in Focus Ahead of iPhone 15 Launch Event
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AAPL
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https://www.nasdaq.com/articles/apple-etfs-in-focus-ahead-of-iphone-15-launch-event
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nan
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nan
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Apple AAPL is gearing up for its iPhone launch event at the Steve Jobs Theater in California on Sep 12. The technology giant is set to unveil the iPhone 15 series smartphones, including the Plus, as well as the high-end Pro and Pro Max variations.
The event will happen just days after the iPhone maker shed nearly $200 billion in market value in two days due to reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies.
That said, ETFs having the largest allocation to the tech titan are in focus. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Invesco QQQ QQQ have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Insights Into the New Launch
iPhone 15: Apple is projected to release four iPhone models. Speculations suggest two middle-range iPhones with 6.1-inch and 6.7-inch screens, and two high-end "Pro" models with enhanced cameras and titanium casings. The new phone is rumored to have a new design, improved camera system, faster performance, longer battery life and new software features. The significant change this year might be the introduction of a USB-C charging port, aligning with European regulations and offering users faster charging (read: 5 Sector ETFs Win on Q2 Earnings Beat).
The iPhone 15 Pro and 15 Pro Max will likely get a new chip called A17 that features a supertiny, 3-nanometer processor, Apple's smallest silicon to date. The iPhone 15 Pro Max may get a new 6x optical telephoto camera.
Apple Watch: Apple is expected to update two Apple Watch series with the launch of Apple Watch Series 9 and Apple Watch Ultra 2. While major design changes are rare for the Watch, internal upgrades, particularly in health sensors and chips, are anticipated.
Accessories: Apple's accessories, like AirPods Pro, might see updates to support USB-C. The AirPods Pro is also expected to introduce Adaptive Audio, enhancing user awareness of their surroundings.
Software: Apple is set to release the newest iOS version - iOS 17. This update offers a redesigned caller ID screen, enhanced autocorrect, a new Journal app, a standby dock mode, and more.
Will China Usage Ban Hurt Sales?
The Wall Street Journal disclosed last Wednesday that Beijing had issued a directive instructing officials within central government agencies not to bring iPhones into their workplaces or use them for professional purposes. Bloomberg News later reported that this prohibition could extend to employees of state-owned enterprises and government-affiliated institutions (read: What Lies Ahead for Apple ETFs After iPhone Use Ban?).
The rumored restriction on iPhones comes closely after Huawei, a Chinese tech giant, launched its new premium smartphone. Bernstein analyst believes an iPhone ban on all Chinese government employees could cut Apple's phone sales in China by as much as 5%. However, most analysts are also calling the reaction overblown, considering China is a much larger market beyond government agencies. Wedbush Securities thinks the ban would affect less than 5,00,000 iPhones of the roughly 45 million he expects to be sold in the country over the next 12 months.
Solid Fundamentals
Apple boasts the world’s highest stock market valuation, at nearly $2.8 trillion. It has seen a positive earnings estimate revision of 5 cents for the current fiscal year (ending September 2023) and a penny for the next fiscal over the past 30 days.
Apple currently has an average brokerage recommendation (ABR) of 1.64 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations made by 29 brokerage firms. The current ABR compares to an ABR of 1.64 a month ago based on 29 recommendations. Of the 29 recommendations deriving the current ABR, 18 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 62.07% and 10.34% of all recommendations. A month ago, Strong Buy made up 62.07%, while Buy represented 10.34%.
Based on short-term price targets offered by 27 analysts, the average price target for Apple comes to $205.07. The forecasts range from a low of $140.00 to a high of $240.00.
Currently, Apple carries a Zacks Rank #3 (Hold) and a Growth Score of B, suggesting that the iPhone maker is primed for growth. Apple stock is cheap, trading at a P/E ratio of 29.47 compared with Amazon’s AMZN 61.94 times, Netflix’s NFLX 37.16 times and Microsoft’s MSFT 30.67 times (see: all the Technology ETFs here).
ETFs in Focus
Technology Select Sector SPDR Fund (XLK): Apple accounts for 21.7% share
Vanguard Information Technology ETF (VGT): Apple accounts for a 22.7% share.
MSCI Information Technology Index ETF (FTEC): Apple makes up 22.3% of assets.
iShares US Technology ETF (IYW): Apple makes up 17.5% of the assets.
iShares Russell Top 200 Growth ETF (IWY): Apple accounts for 13.9% of shares.
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Invesco QQQ (QQQ): ETF Research Reports
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is gearing up for its iPhone launch event at the Steve Jobs Theater in California on Sep 12. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The Wall Street Journal disclosed last Wednesday that Beijing had issued a directive instructing officials within central government agencies not to bring iPhones into their workplaces or use them for professional purposes.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL is gearing up for its iPhone launch event at the Steve Jobs Theater in California on Sep 12. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Invesco QQQ QQQ have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL is gearing up for its iPhone launch event at the Steve Jobs Theater in California on Sep 12. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Invesco QQQ QQQ have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL is gearing up for its iPhone launch event at the Steve Jobs Theater in California on Sep 12. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Invesco QQQ QQQ have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
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13807.0
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2023-09-11 00:00:00 UTC
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Technology Sector Update for 09/11/2023: TSLA, QCOM, RTX, AAPL
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-09-11-2023%3A-tsla-qcom-rtx-aapl
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nan
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nan
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Tech stocks were mixed Monday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 0.2% and the Philadelphia Semiconductor index falling 0.5%.
In company news, Tesla's (TSLA) Dojo custom supercomputing initiative can add up to $500 billion to the company's enterprise value through faster adoption of robotaxis and network services, Morgan Stanley said in a note. The brokerage upgraded Tesla to overweight from equal-weight and raised its price target to $400 from $250. Tesla shares rose 9.6%.
Qualcomm (QCOM) shares rose 4% after the chipmaker said it signed a deal with Apple (AAPL) to supply Snapdragon 5G modem-RF systems for smartphones that will be launched from 2024 to 2026.
RTX (RTX) slumped 7.9% after the company said it expects to take a $3 billion charge in the current quarter due to an engine manufacturing issue within its aircraft engine business, Pratt & Whitney.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Qualcomm (QCOM) shares rose 4% after the chipmaker said it signed a deal with Apple (AAPL) to supply Snapdragon 5G modem-RF systems for smartphones that will be launched from 2024 to 2026. Tech stocks were mixed Monday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 0.2% and the Philadelphia Semiconductor index falling 0.5%. In company news, Tesla's (TSLA) Dojo custom supercomputing initiative can add up to $500 billion to the company's enterprise value through faster adoption of robotaxis and network services, Morgan Stanley said in a note.
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Qualcomm (QCOM) shares rose 4% after the chipmaker said it signed a deal with Apple (AAPL) to supply Snapdragon 5G modem-RF systems for smartphones that will be launched from 2024 to 2026. Tesla shares rose 9.6%. RTX (RTX) slumped 7.9% after the company said it expects to take a $3 billion charge in the current quarter due to an engine manufacturing issue within its aircraft engine business, Pratt & Whitney.
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Qualcomm (QCOM) shares rose 4% after the chipmaker said it signed a deal with Apple (AAPL) to supply Snapdragon 5G modem-RF systems for smartphones that will be launched from 2024 to 2026. In company news, Tesla's (TSLA) Dojo custom supercomputing initiative can add up to $500 billion to the company's enterprise value through faster adoption of robotaxis and network services, Morgan Stanley said in a note. RTX (RTX) slumped 7.9% after the company said it expects to take a $3 billion charge in the current quarter due to an engine manufacturing issue within its aircraft engine business, Pratt & Whitney.
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Qualcomm (QCOM) shares rose 4% after the chipmaker said it signed a deal with Apple (AAPL) to supply Snapdragon 5G modem-RF systems for smartphones that will be launched from 2024 to 2026. Tech stocks were mixed Monday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 0.2% and the Philadelphia Semiconductor index falling 0.5%. In company news, Tesla's (TSLA) Dojo custom supercomputing initiative can add up to $500 billion to the company's enterprise value through faster adoption of robotaxis and network services, Morgan Stanley said in a note.
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13808.0
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2023-09-11 00:00:00 UTC
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US STOCKS-Wall St rises on Tesla boost as investors await inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-on-tesla-boost-as-investors-await-inflation-data
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nan
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nan
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By Shristi Achar A and Shubham Batra
Sept 11 (Reuters) - The S&P 500 and Nasdaq were on course for their best day in two weeks on Monday as Tesla led gains in megacaps, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path.
Tesla TSLA.O jumped 8.7% as Morgan Stanley upgraded it to "overweight" from "equal-weight", saying the EV maker's Dojo supercomputer could boost the company's market value by nearly $600 billion.
Shares of other megacaps including Apple AAPL.O, Microsoft MSFT.O and Amazon AMZN.O rose between 0.1% and 2.4%%.
The S&P 500 consumer discretionary stocks .SPLRCD rose 2.2% to their highest level in a month, leading gains in key S&P 500 sectors.
Energy shares .SPNY were a major drag, down 1.1%.
Investors now await the crucial consumer and producer prices data as well as retail sales numbers due later this week.
A survey by New York Fed showed that Americans' overall views on inflation were little changed in August, as they predicted rising costs for homes and food, while expecting bleaker personal financial health.
"I don't expect anything (on rates) in September," said Anthony Denier, CEO at brokerage Webull.
"I do expect more movement towards the end of the year, but as long as the jobs data continues on the trend that we're seeing, the Fed won't need to be aggressive and that's going to be good for markets of course."
Wall Street had logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
Traders see a 93% chance of the central bank holding its interest rates at current levels in the September meeting, while their odds for a pause in November stand at nearly 61%, according to CME FedWatch Tool.
Treasury yields inched up on Monday, with yields on 2-year note, considered to best reflect short-term interest rate expectations, hovering around 4.9906%.
Fed officials have entered a blackout period, during which they usually do not make public comments, until the policy decision outcome on Sept. 20.
At 11:42 a.m. ET, the Dow Jones Industrial Average .DJI was up 18.53 points, or 0.05%, at 34,595.12, the S&P 500 .SPX was up 15.91 points, or 0.36%, at 4,473.40, and the Nasdaq Composite .IXIC was up 94.04 points, or 0.68%, at 13,855.57.
While QualcommQCOM.O advanced 3.3% after the chipmaker signed a new deal with Apple to supply 5G chips to the iPhone maker until at least 2026, peers were down, led by a 2.1% fall in Nvidia NVDA.O.
Hostess BrandsTWNK.O jumped 19.2% after J. M. Smucker SJM.N said it would buy the Twinkies-maker in a $5.6 billion deal.
Meta PlatformsMETA.O added 2.1% after a report on Sunday said the firm was working on a new, more powerful artificial-intelligence system.
Advancing issues outnumbered decliners by a 1.68-to-1 ratio on the NYSE and by a 1.35-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and nine new lows, while the Nasdaq recorded 23 new highs and 122 new lows.
(Reporting by Ankika Biswas, Shreyashi Sanyal and Shubham Batra in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of other megacaps including Apple AAPL.O, Microsoft MSFT.O and Amazon AMZN.O rose between 0.1% and 2.4%%. A survey by New York Fed showed that Americans' overall views on inflation were little changed in August, as they predicted rising costs for homes and food, while expecting bleaker personal financial health. Wall Street had logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
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Shares of other megacaps including Apple AAPL.O, Microsoft MSFT.O and Amazon AMZN.O rose between 0.1% and 2.4%%. By Shristi Achar A and Shubham Batra Sept 11 (Reuters) - The S&P 500 and Nasdaq were on course for their best day in two weeks on Monday as Tesla led gains in megacaps, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. Treasury yields inched up on Monday, with yields on 2-year note, considered to best reflect short-term interest rate expectations, hovering around 4.9906%.
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Shares of other megacaps including Apple AAPL.O, Microsoft MSFT.O and Amazon AMZN.O rose between 0.1% and 2.4%%. By Shristi Achar A and Shubham Batra Sept 11 (Reuters) - The S&P 500 and Nasdaq were on course for their best day in two weeks on Monday as Tesla led gains in megacaps, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. Wall Street had logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
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Shares of other megacaps including Apple AAPL.O, Microsoft MSFT.O and Amazon AMZN.O rose between 0.1% and 2.4%%. Tesla TSLA.O jumped 8.7% as Morgan Stanley upgraded it to "overweight" from "equal-weight", saying the EV maker's Dojo supercomputer could boost the company's market value by nearly $600 billion. Investors now await the crucial consumer and producer prices data as well as retail sales numbers due later this week.
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13809.0
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2023-09-11 00:00:00 UTC
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US STOCKS-Nasdaq ends sharply higher as Tesla soars on AI optimism
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-ends-sharply-higher-as-tesla-soars-on-ai-optimism
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nan
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nan
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By Noel Randewich and Shristi Achar A
Sept 11 (Reuters) - The Nasdaq closed sharply higher on Monday as Tesla surged on optimism around artificial intelligence and investors awaited inflation data due later this week.
Tesla TSLA.O rallied after Morgan Stanley upgraded the electric car maker to "overweight" from "equal-weight," saying its Dojo supercomputer could boost the company's market value by nearly $600 billion.
Other megacaps also rose, with Amazon AMZN.O and Microsoft MSFT.O making gains.
Meta PlatformsMETA.O jumped after a report on Sunday said the social media platform was working on a new, more powerful AI system.
Walt Disney and Charter Communications rose after they reached a dealfor Disney's programming, including ESPN, to return to the Spectrum cable service just hours ahead of the start of NFL "Monday Night Football."
Investors are looking to August consumer price index data due on Wednesday for clues about how close the Federal Reserve may be to ending its campaign of interest rate hikes. That will be followed by producer price data on Thursday.
A New York Fed survey showed Americans' overall views on inflation were little changed in August, as they predicted rising costs for homes and food, while expecting bleaker personal financial health.
"What we're seeing is a lot of positive sentiment that is really tied to bullishness around the likely CPI and PPI numbers being more in line with moderation," said Greg Bassuk, chief executive officer of AXS Investments in New York.
"As long as the inflation numbers for August come in within the band of expectations, we're going to see the Fed move away from additional rate hikes."
Wall Street logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
Traders see a 93% chance that the central bank will hold its interest rates at current levels at its September meeting, while chances of a pause in November stand at 57%, according to the CME FedWatch Tool.
Fed officials have entered a blackout period, during which they usually do not make public comments, until the policy decision outcome on Sept. 20.
According to preliminary data, the S&P 500 .SPX gained 30.24 points, or 0.68%, to end at 4,487.73 points, while the Nasdaq Composite .IXIC gained 158.83 points, or 1.15%, to 13,920.35. The Dow Jones Industrial Average .DJI rose 89.89 points, or 0.26%, to 34,666.48.
QualcommQCOM.O advanced after the chipmaker signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. Other chipmakers declined, with Nvidia NVDA.O down 1.1%.
Hostess BrandsTWNK.O surged after J. M. Smucker SJM.Nsaid it would buy the Twinkies-maker in a $5.6 billion deal.
(Reporting by Ankika Biswas, Shreyashi Sanyal and Shubham Batra in Bengaluru, and by Noel Randewich in Oakland, Calif; Editing by Arun Koyyur, Vinay Dwivedi and Richard Chang)
((noel.randewich@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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QualcommQCOM.O advanced after the chipmaker signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. By Noel Randewich and Shristi Achar A Sept 11 (Reuters) - The Nasdaq closed sharply higher on Monday as Tesla surged on optimism around artificial intelligence and investors awaited inflation data due later this week. A New York Fed survey showed Americans' overall views on inflation were little changed in August, as they predicted rising costs for homes and food, while expecting bleaker personal financial health.
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QualcommQCOM.O advanced after the chipmaker signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. By Noel Randewich and Shristi Achar A Sept 11 (Reuters) - The Nasdaq closed sharply higher on Monday as Tesla surged on optimism around artificial intelligence and investors awaited inflation data due later this week. Wall Street logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
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QualcommQCOM.O advanced after the chipmaker signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. By Noel Randewich and Shristi Achar A Sept 11 (Reuters) - The Nasdaq closed sharply higher on Monday as Tesla surged on optimism around artificial intelligence and investors awaited inflation data due later this week. Investors are looking to August consumer price index data due on Wednesday for clues about how close the Federal Reserve may be to ending its campaign of interest rate hikes.
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QualcommQCOM.O advanced after the chipmaker signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. Investors are looking to August consumer price index data due on Wednesday for clues about how close the Federal Reserve may be to ending its campaign of interest rate hikes. Wall Street logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
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13810.0
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2023-09-11 00:00:00 UTC
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US STOCKS-Wall Street rises on Tesla soars on AI optimism
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rises-on-tesla-soars-on-ai-optimism
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nan
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nan
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By Noel Randewich and Shristi Achar A
Sept 11 (Reuters) - Wall Street stocks rose on Monday, with the Nasdaq jumping over 1% as Tesla surged on optimism around artificial intelligence and investors awaited inflation data due later this week.
Tesla TSLA.O rallied almost 10% after Morgan Stanley upgraded the electric car maker to "overweight" from "equal-weight," saying its Dojo supercomputer could boost the company's market value by nearly $600 billion.
Other megacaps also rose, with Amazon AMZN.O up 3% and Microsoft MSFT.O climbing 1%.
Meta PlatformsMETA.O added 3.4% after a report on Sunday said the social media platform was working on a new, more powerful AI system.
Investors are looking to August consumer price index data due on Wednesday for clues about how close the Federal Reserve may be to ending its campaign of interest rate hikes. That will be followed by producer price data on Thursday.
A New York Fed surveyshowed Americans' overall views on inflation were little changed in August, as they predicted rising costs for homes and food, while expecting bleaker personal financial health.
"What we're seeing is a lot of positive sentiment that is really tied to bullishness around the likely CPI and PPI numbers being more in line with moderation," said Greg Bassuk, chief executive officer of AXS Investments in New York.
"As long as the inflation numbers for August come in within the band of expectations, we're going to see the Fed move away from additional rate hikes."
Wall Street logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
Traders see a 93% chance that the central bank will hold its interest rates at current levels at its September meeting, while chances of a pause in November stand at 57%, according to the CME FedWatch Tool.
Fed officials have entered a blackout period, during which they usually do not make public comments, until the policy decision outcome on Sept. 20.
Of the 11 S&P 500 sector indexes, nine rose, led by consumer discretionary .SPLRCD, up 2.55%, followed by a 1.16% gain in communication services .SPLRCL.
The S&P 500 climbed 0.63% to 4,485.51 points.
The Nasdaq gained 1.08% to 13,910.83 points, while Dow Jones Industrial Average rose 0.25% to 34,662.93 points.
QualcommQCOM.O advanced 4% after the chipmaker signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. Other chipmakers declined, with Nvidia NVDA.O> down 1.1%.
Hostess BrandsTWNK.O jumped 19% after J. M. Smucker SJM.Nsaid it would buy the Twinkies-maker in a $5.6 billion deal.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.7-to-one ratio.
The S&P 500 posted 12 new highs and 11 new lows; the Nasdaq recorded 29 new highs and 156 new lows.
(Reporting by Ankika Biswas, Shreyashi Sanyal and Shubham Batra in Bengaluru, and by Noel Randewich in Oakland, Calif; Editing by Arun Koyyur, Vinay Dwivedi and Richard Chang)
((noel.randewich@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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QualcommQCOM.O advanced 4% after the chipmaker signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. By Noel Randewich and Shristi Achar A Sept 11 (Reuters) - Wall Street stocks rose on Monday, with the Nasdaq jumping over 1% as Tesla surged on optimism around artificial intelligence and investors awaited inflation data due later this week. A New York Fed surveyshowed Americans' overall views on inflation were little changed in August, as they predicted rising costs for homes and food, while expecting bleaker personal financial health.
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QualcommQCOM.O advanced 4% after the chipmaker signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. By Noel Randewich and Shristi Achar A Sept 11 (Reuters) - Wall Street stocks rose on Monday, with the Nasdaq jumping over 1% as Tesla surged on optimism around artificial intelligence and investors awaited inflation data due later this week. Investors are looking to August consumer price index data due on Wednesday for clues about how close the Federal Reserve may be to ending its campaign of interest rate hikes.
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QualcommQCOM.O advanced 4% after the chipmaker signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. By Noel Randewich and Shristi Achar A Sept 11 (Reuters) - Wall Street stocks rose on Monday, with the Nasdaq jumping over 1% as Tesla surged on optimism around artificial intelligence and investors awaited inflation data due later this week. Investors are looking to August consumer price index data due on Wednesday for clues about how close the Federal Reserve may be to ending its campaign of interest rate hikes.
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QualcommQCOM.O advanced 4% after the chipmaker signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. Investors are looking to August consumer price index data due on Wednesday for clues about how close the Federal Reserve may be to ending its campaign of interest rate hikes. The S&P 500 climbed 0.63% to 4,485.51 points.
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13811.0
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2023-09-11 00:00:00 UTC
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FOCUS-Nvidia's dominance in AI chips deters funding for startups
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AAPL
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https://www.nasdaq.com/articles/focus-nvidias-dominance-in-ai-chips-deters-funding-for-startups
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By Max A. Cherney
Sept 11 (Reuters) - Nvidia's NVDA.O supremacy in building computer chips for artificial intelligence has chilled venture funding for would-be rivals, investors said, with the number of U.S. deals this quarter falling 80% from a year ago.
The Santa Clara, California company dominates the market for chips that work with massive amounts of language data. Generative AI models get incrementally smarter through exposure to more data, a process called training.
As Nvidia has grown stronger in this area, the harder it has become for companies attempting to build competing chips. Seeing these startups as a riskier bet, venture financiers are newly unwilling to provide big cash infusions. Advancing a chip design to a working prototype can cost more than $500 million, so the pullback has quickly threatened the startups' prospects.
"Nvidia’s continued dominance has put a really fine point on how hard it is to break into this market," said Greg Reichow, a partner at Eclipse Ventures. "This has resulted in a pullback in investment into these companies, or at least into many of them."
U.S. chip startups have raised $881.4 million through the end of August, according to PitchBook data. That compares to $1.79 billion for the first three quarters of 2022. The number of deals has dropped from 23 to four through the end of August.
Nvidia declined to comment.
AI chip startup Mythic, which has raised about $160 million in total, ran out of cash last year and was nearly forced to halt operations, technology website The Register reported. But it managed to bring in a relatively modest $13 million investment several months later in March.
Nvidia has "indirectly" contributed to overall AI chip fundraising woes, because investors want "Home run only type investments with a huge investment, huge return," Mythic CEO Dave Rick said.
Difficult economic conditions have added to the downturn in the cyclical semiconductor industry, Rick said.
A secretive startup called Rivos, which is working on chip designs for data servers has had trouble raising funding recently, said two sources familiar with the company's situation.
A Rivos spokesperson said Nvidia's market dominance hasn't hindered its fundraising efforts and its hardware and software "continues to excite our investors."
Rivos is embroiled in litigation with Apple AAPL.O, which has accused Rivos of stealing intellectual property, and this has compounded the fundraising challenge.
DEMANDING INVESTORS
Chip startups looking to raise cash are facing tougher demands from investors. They require companies to have a product that is within months of launch or already generating sales, sources said.
About two years ago, new investments in chip startups were often $200 million or $300 million. That has fallen to about $100 million, according to PitchBook analyst Brendan Burke.
At least two AI chip startups have overcome investor reluctance by trumpeting potential customers or their relationships with well-known executives.
To raise $100 million in August, Tenstorrent boasted about CEO Jim Keller, a near legendary chip architect who has designed chips for Apple, Advanced Micro Devices AMD.O and Tesla TSLA.O.
D-Matrix, which has projected revenue of less than $10 million this year, raised $110 million last week, bolstered by financial backing from Microsoft and a commitment by the Windows maker to test d-Matrix's new AI chip after it launches next year.
While these chip makers in Nvidia's shadow struggle, startups in AI software and related technologies do not face the same constraints. They brought in about $24 billion in funding this year through August, according to PitchBook data.
Despite Nvidia's dominance in AI computing, the company does not have an unassailable lock on the sector. AMD plans to launch this year a chip that will compete with Nvidia's, and Intel INTC.O leapfrogged development by gaining a rival product in an acquisition. Sources see these as having long-term potential to become alternatives to Nvidia's chip.
There are also adjacent applications that could provide openings for competitors. For example, chips that perform data-intensive computing for prediction algorithms are an emerging niche. Nvidia does not dominate this area and it's ripe for investment.
(Reporting by Max A. Cherney in San Francisco; editing by Kenneth Li, Cynthia Osterman and Christian Schmollinger)
((Max.Cherney@thomsonreuters.com; 415-484-6872 @chernandburn on Twitter;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rivos is embroiled in litigation with Apple AAPL.O, which has accused Rivos of stealing intellectual property, and this has compounded the fundraising challenge. By Max A. Cherney Sept 11 (Reuters) - Nvidia's NVDA.O supremacy in building computer chips for artificial intelligence has chilled venture funding for would-be rivals, investors said, with the number of U.S. deals this quarter falling 80% from a year ago. AI chip startup Mythic, which has raised about $160 million in total, ran out of cash last year and was nearly forced to halt operations, technology website The Register reported.
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Rivos is embroiled in litigation with Apple AAPL.O, which has accused Rivos of stealing intellectual property, and this has compounded the fundraising challenge. U.S. chip startups have raised $881.4 million through the end of August, according to PitchBook data. Nvidia has "indirectly" contributed to overall AI chip fundraising woes, because investors want "Home run only type investments with a huge investment, huge return," Mythic CEO Dave Rick said.
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Rivos is embroiled in litigation with Apple AAPL.O, which has accused Rivos of stealing intellectual property, and this has compounded the fundraising challenge. Nvidia has "indirectly" contributed to overall AI chip fundraising woes, because investors want "Home run only type investments with a huge investment, huge return," Mythic CEO Dave Rick said. About two years ago, new investments in chip startups were often $200 million or $300 million.
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Rivos is embroiled in litigation with Apple AAPL.O, which has accused Rivos of stealing intellectual property, and this has compounded the fundraising challenge. U.S. chip startups have raised $881.4 million through the end of August, according to PitchBook data. A secretive startup called Rivos, which is working on chip designs for data servers has had trouble raising funding recently, said two sources familiar with the company's situation.
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13812.0
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2023-09-11 00:00:00 UTC
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Qualcomm (QCOM) Down on China Woes: Should Investors Worry?
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AAPL
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https://www.nasdaq.com/articles/qualcomm-qcom-down-on-china-woes%3A-should-investors-worry
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nan
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nan
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Qualcomm Incorporated QCOM shares tumbled last week on news that Beijing is mulling to impose a ban on the use of iPhones in government offices and state-backed entities as part of its concerted effort toward self-reliance. The restrictions on Apple Inc. AAPL are likely to take a toll on Qualcomm, which is one of the leading suppliers to the iPhone manufacturing firm. The ripple effect is expected to have broader repercussions on the semiconductor industry as well, impacting various technology firms within the supply chain.
The new directive by the communist nation is apparently aimed at encouraging the sale and wider usage of domestic smartphone brands and curbing its reliance on foreign technology. It also intends to control the flow of sensitive information outside China. However, experts widely believe the latest ploy to be a retaliatory strike in the Sino-U.S. trade spat, with Apple being the biggest pawn yet in this tech war.
The U.S. Commerce Department has long imposed various trade restrictions against China that banned the sale of high-tech equipment, chips, components and related technology to develop high-end smartphones and AI-enabled chips. Despite adding China-based Huawei to the ‘Entity List’, the newly developed Huawei Mate 60 smartphone is believed to have violated the U.S. trade sanctions. This has forced the U.S. watchdog to enforce stricter trade restrictions while conducting the authenticity of the trade violations, which probably led to a tit-for-tat action against Apple.
Over the years, China has been one of the primary markets for Apple. As the news of the purported ban spread like a wildfire, shares slumped and the company lost nearly $200 billion in market capitalization. This further affected its suppliers like Qualcomm, among others. Qualcomm modems have been a key feature in iPhone models, connecting the device to cellular networks for fast web browsing and instant app access. Built on indigenous technology that requires specialized engineering expertise and broad industry know-how, these modems have been the hallmark of impeccable performance standards.
Moreover, China accounts for a lion’s share of Qualcomm’s revenues. The company also supplied older-generation 4G chips to Huawei. Consequently, Qualcomm shares had a knee-jerk effect amid the sudden developments.
However, Qualcomm is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge with a diversified revenue stream. It is witnessing healthy traction in EDGE networking that helps to transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The automotive telematics and connectivity platforms, digital cockpit and C-V2X solutions are also fueling emerging automotive industry trends such as the growth of connected vehicles, the transformation of the in-car experience and vehicle electrification. Qualcomm believes it is on track to become the largest smartphone RF front-end supplier by revenues in the near future.
With the acquisition of Veoneer, Qualcomm has incorporated Arriver's Computer Vision, Drive Policy and Driver Assistance assets into its ADAS portfolio to deliver an open and competitive platform for automakers to better compete with rivals within the self-driving vehicle market. This, in turn, is likely to augment its automotive business as it strives to boost revenues beyond chipmaking for the smartphone market.
The company intends to harness artificial intelligence to meet increased demands for essential products and services that are the building blocks of digital transformation in a cloud economy. Qualcomm envisions solid growth opportunities within the mobile space, driven by its Snapdragon portfolio.
Amid this backdrop, we expect the China setback to have a limited effect on its share prices.
Shares of the company have lost 20.2% in the past year compared with the industry’s decline of 19%.
Image Source: Zacks Investment Research
Qualcomm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
Arista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 18.7% and delivered an earnings surprise of 12.8%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
AudioCodes Ltd. AUDC is a Zacks Rank #2 stock. It has a long-term earnings growth expectation of 4.3% and delivered an earnings surprise of 2.2%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products, and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
AudioCodes Ltd. (AUDC) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The restrictions on Apple Inc. AAPL are likely to take a toll on Qualcomm, which is one of the leading suppliers to the iPhone manufacturing firm. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report AudioCodes Ltd. (AUDC) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Qualcomm Incorporated QCOM shares tumbled last week on news that Beijing is mulling to impose a ban on the use of iPhones in government offices and state-backed entities as part of its concerted effort toward self-reliance.
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report AudioCodes Ltd. (AUDC) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. The restrictions on Apple Inc. AAPL are likely to take a toll on Qualcomm, which is one of the leading suppliers to the iPhone manufacturing firm. Image Source: Zacks Investment Research Qualcomm currently carries a Zacks Rank #3 (Hold).
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report AudioCodes Ltd. (AUDC) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. The restrictions on Apple Inc. AAPL are likely to take a toll on Qualcomm, which is one of the leading suppliers to the iPhone manufacturing firm. However, Qualcomm is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge with a diversified revenue stream.
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The restrictions on Apple Inc. AAPL are likely to take a toll on Qualcomm, which is one of the leading suppliers to the iPhone manufacturing firm. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report AudioCodes Ltd. (AUDC) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. The company intends to harness artificial intelligence to meet increased demands for essential products and services that are the building blocks of digital transformation in a cloud economy.
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13813.0
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2023-09-11 00:00:00 UTC
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1 Super Stock Set to Join Apple and Microsoft in the $2 Trillion Club
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https://www.nasdaq.com/articles/1-super-stock-set-to-join-apple-and-microsoft-in-the-%242-trillion-club
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nan
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Fool.com contributor Parkev Tatevosian highlights one super stock that is close to reaching a coveted milestone.
*Stock prices used were the afternoon prices of Sept. 7, 2023. The video was published on Sept. 9, 2023.
10 stocks we like better than Alphabet
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 5, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Parkev Tatevosian, CFA has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian highlights one super stock that is close to reaching a coveted milestone. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of September 5, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Parkev Tatevosian, CFA has positions in Alphabet and Apple.
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10 stocks we like better than Alphabet When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of September 5, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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*Stock prices used were the afternoon prices of Sept. 7, 2023. Parkev Tatevosian, CFA has positions in Alphabet and Apple. His opinions remain his own and are unaffected by The Motley Fool.
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13814.0
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2023-09-11 00:00:00 UTC
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Here's How To Play The PC Comeback, The Buffett Way
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AAPL
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https://www.nasdaq.com/articles/heres-how-to-play-the-pc-comeback-the-buffett-way
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nan
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nan
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When the oracle of Omaha, the one and only Warren Buffett, decides to come out of his office and request his executing trader to place an order - and a big one at that - for a given company, investors globally should tune into his decision and attempt their best to reverse engineer it.
While not the latest addition to Berkshire Hathaway (NYSE: BRK.A) holdings, April of 2022 marked when Buffett decided to buy up to $4.2 billion of HP Inc (NYSE: HPQ).
Considering that the stock is lower today than when the investment legend had thought it cheap enough, investors can amplify their potential returns by assessing a potential purchase.
Despite both the business and the industry suffering from headwinds lately, there are significant strengths present in the company that will be hard to turn away from, and this is something that markets will have to eventually give into when pushing the stock higher.
Current Sentiment
Shares of HP have declined recently, falling by as much as 13% during the past quarter; investors need to figure out if these sell-offs are justified or not. According to the August ISM Manufacturing PMI index report, the computer and electronics industry has expressed further slowdowns.
These trends can be seen across other industry players, such as Apple (NASDAQ: AAPL) announcing a 30% decline in PC shipments, which the company looks to offset with its latest product release, setting up the stock for a potential breakout.
For HP, the only alternative to drive media attention away from slowing PC sales is their second largest segment: printers and other office equipment. Revenues fell by 6.8% during the year in this segment, shadowing a worse 11.3% decline in PC revenue.
These contractions in printers may stem from offices across the board cutting their expenditures for such equipment as the trend to work remotely or in a hybrid setting becomes the norm across businesses.
Regarding the PC segment, it would be hard to imagine that these declines will stick forever, especially as more online businesses and remote work require such equipment. Understanding that these contractions are not company-specific can reassure investors of these matters.
Competitors like Dell (NYSE: DELL) have also felt the adverse effects of the industry. However, their stock price is hitting all-time highs as management cleverly played the "Artificial Intelligence" card coupled with a strong dividend. Yet, the numbers behind sluggish PC sales cannot lie.
Your Very Own Buffett Moment
The first premise of a value investor like Warren is to look for a consistently profitable company and look to acquire it at meager prices.
In the case of HP, its financials will show a five-year average ROIC (return on invested capital) of over 45%, earning its place as one of the most - if not the most - profitable player in the space.
Secondly, the company's latest gross profit margins of above 20% will imply the initial presence of a moat around the brand. Alright so HP is a definite money maker, the important question now becomes, how much should you pay for it?
The computer hardware - focusing on personal computer electronics - carries an average price-to-earnings ratio of 54x, whereas HP is valued at a significantly lower 12.8x based on today's prices. Despite these discounts, analysts refuse to see the upside present in this name.
With a consensus price target of $29.7 a share, analysts imply a mere 1% upside from today's stock price. They are forgetting the basic premise of ROIC, which is that annual stock performance tends to reflect this metric over the long-term.
That answers it: today's valuation - which is lower than where Buffett bought in - represents a fantastic discount to a double-digit rally in the making. On a more fundamental basis, there is still something that activist investors, perhaps Buffett himself, can spark inside the business.
According to the company's latest quarterly results, $777 million was returned to shareholders via dividend payments, annualizing a dividend yield of 3.6%. Some may argue that these dividends could be lowered or even postponed and use all these funds to repurchase stock more aggressively, especially at these fire sale prices.
As is always the case, Wall Street firms are making their moves quietly and ahead of time. Applied Finance Capital Management LLC moved recently to acquire as many as 46,128 cheap shares of HP stock.
There you have it, a massively profitable industry leader at a ridiculous discount, so claim your podium next to Buffett's.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These trends can be seen across other industry players, such as Apple (NASDAQ: AAPL) announcing a 30% decline in PC shipments, which the company looks to offset with its latest product release, setting up the stock for a potential breakout. When the oracle of Omaha, the one and only Warren Buffett, decides to come out of his office and request his executing trader to place an order - and a big one at that - for a given company, investors globally should tune into his decision and attempt their best to reverse engineer it. Despite both the business and the industry suffering from headwinds lately, there are significant strengths present in the company that will be hard to turn away from, and this is something that markets will have to eventually give into when pushing the stock higher.
|
These trends can be seen across other industry players, such as Apple (NASDAQ: AAPL) announcing a 30% decline in PC shipments, which the company looks to offset with its latest product release, setting up the stock for a potential breakout. In the case of HP, its financials will show a five-year average ROIC (return on invested capital) of over 45%, earning its place as one of the most - if not the most - profitable player in the space. With a consensus price target of $29.7 a share, analysts imply a mere 1% upside from today's stock price.
|
These trends can be seen across other industry players, such as Apple (NASDAQ: AAPL) announcing a 30% decline in PC shipments, which the company looks to offset with its latest product release, setting up the stock for a potential breakout. Considering that the stock is lower today than when the investment legend had thought it cheap enough, investors can amplify their potential returns by assessing a potential purchase. Your Very Own Buffett Moment The first premise of a value investor like Warren is to look for a consistently profitable company and look to acquire it at meager prices.
|
These trends can be seen across other industry players, such as Apple (NASDAQ: AAPL) announcing a 30% decline in PC shipments, which the company looks to offset with its latest product release, setting up the stock for a potential breakout. Regarding the PC segment, it would be hard to imagine that these declines will stick forever, especially as more online businesses and remote work require such equipment. Your Very Own Buffett Moment The first premise of a value investor like Warren is to look for a consistently profitable company and look to acquire it at meager prices.
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13815.0
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2023-09-11 00:00:00 UTC
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Qualcomm to supply Apple with 5G chips until 2026 under new deal
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AAPL
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https://www.nasdaq.com/articles/qualcomm-to-supply-apple-with-5g-chips-until-2026-under-new-deal-0
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nan
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By Stephen Nellis
Sept 11 (Reuters) - Qualcomm QCOM.O on Monday said it had signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026.
Qualcomm, whose shares rose 5% in early trading, is the leading designer of what are known as modem chips that connect phones to mobile data networks.
The San Diego, California-based firm previously signed a supply deal with Apple in 2019, after the two companies settled a protracted legal battle.
That chip supply agreement ends this year, meaning that the iPhones that Apple is expected to announce Tuesday would be the last phone debut under that agreement.
Under the deal announced Monday, Qualcomm said it will supply Apple with chips for phones that will come out each year until 2026. Qualcomm did not disclose the value of the deal, saying only that the terms are "similar" to its previous agreement.
Qualcomm also said that a patent licensing deal it signed with Apple in 2019 remains in place. That deal expires in 2025, but the companies have an option to extend it for two years.
"At a time when Apple is running into increasing challenges in China, reinforcing its supply chains elsewhere is a priority, and it appears the company is rolling back or at least delaying plans to go at it alone in more areas with its own chip production," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Apple is working on its own modem technology and spent $1 billion to buy Intel's INTC.O modem unit in 2019. Apple has not said how quickly it plans to ramp up the use of its own chips.
Qualcomm on Tuesday said that its financial projections will assume that only a fifth of Apple's iPhones will use its chips by 2026.
However, Qualcomm made a similar projection about its business with Apple in 2021 that turned out to be overly conservative, with iPhone 14 models released last year all using Qualcomm modems.
(Reporting by Stephen Nellis in San Francisco; Additional reporting by Yuvraj Malik in Bengaluru; editing by Miral Fahmy)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis Sept 11 (Reuters) - Qualcomm QCOM.O on Monday said it had signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. Qualcomm, whose shares rose 5% in early trading, is the leading designer of what are known as modem chips that connect phones to mobile data networks. The San Diego, California-based firm previously signed a supply deal with Apple in 2019, after the two companies settled a protracted legal battle.
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By Stephen Nellis Sept 11 (Reuters) - Qualcomm QCOM.O on Monday said it had signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. That chip supply agreement ends this year, meaning that the iPhones that Apple is expected to announce Tuesday would be the last phone debut under that agreement. Under the deal announced Monday, Qualcomm said it will supply Apple with chips for phones that will come out each year until 2026.
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By Stephen Nellis Sept 11 (Reuters) - Qualcomm QCOM.O on Monday said it had signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. Under the deal announced Monday, Qualcomm said it will supply Apple with chips for phones that will come out each year until 2026. However, Qualcomm made a similar projection about its business with Apple in 2021 that turned out to be overly conservative, with iPhone 14 models released last year all using Qualcomm modems.
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By Stephen Nellis Sept 11 (Reuters) - Qualcomm QCOM.O on Monday said it had signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. Under the deal announced Monday, Qualcomm said it will supply Apple with chips for phones that will come out each year until 2026. Qualcomm did not disclose the value of the deal, saying only that the terms are "similar" to its previous agreement.
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13816.0
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2023-09-11 00:00:00 UTC
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Qualcomm to supply Apple with 5G chips until 2026 under new deal
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AAPL
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https://www.nasdaq.com/articles/qualcomm-to-supply-apple-with-5g-chips-until-2026-under-new-deal
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nan
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nan
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By Stephen Nellis
Sept 11 (Reuters) - Qualcomm QCOM.O on Monday said it had signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026.
Qualcomm is the leading designer of what are known as modem chips that connect phones to mobile data networks. The San Diego, California-based firm previously signed a supply deal with Apple in 2019, after the two companies settled a protracted legal battle.
That chip supply agreement ends this year, meaning that the iPhones that Apple is expected to announce Tuesday would be the last phone debut under that agreement.
Under the deal announced Monday, Qualcomm said it will supply Apple with chips for phones that will come out each year until 2026. Qualcomm did not disclose the value of the deal, saying only that the terms are "similar" to its previous agreement.
Qualcomm also said that a patent licensing deal it signed with Apple in 2019 remains in place. That deal expires in 2025, but the companies have an option to extend it for two years.
Apple is working on its own modem technology and spent $1 billion to buy Intel's INTC.O modem unit in 2019. Apple has not said how quickly it plans to ramp up the use of its own chips.
Qualcomm on Tuesday said that its financial projections will assume that only a fifth of Apple's iPhones will use its chips by 2026. However, Qualcomm made a similar projection about its business with Apple in 2021 that turned out to be overly conservative, with iPhone 14 models released last year all using Qualcomm modems.
(Reporting by Stephen Nellis in San Francisco; editing by Miral Fahmy)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis Sept 11 (Reuters) - Qualcomm QCOM.O on Monday said it had signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. Qualcomm is the leading designer of what are known as modem chips that connect phones to mobile data networks. The San Diego, California-based firm previously signed a supply deal with Apple in 2019, after the two companies settled a protracted legal battle.
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By Stephen Nellis Sept 11 (Reuters) - Qualcomm QCOM.O on Monday said it had signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. That chip supply agreement ends this year, meaning that the iPhones that Apple is expected to announce Tuesday would be the last phone debut under that agreement. Under the deal announced Monday, Qualcomm said it will supply Apple with chips for phones that will come out each year until 2026.
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By Stephen Nellis Sept 11 (Reuters) - Qualcomm QCOM.O on Monday said it had signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. Under the deal announced Monday, Qualcomm said it will supply Apple with chips for phones that will come out each year until 2026. However, Qualcomm made a similar projection about its business with Apple in 2021 that turned out to be overly conservative, with iPhone 14 models released last year all using Qualcomm modems.
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By Stephen Nellis Sept 11 (Reuters) - Qualcomm QCOM.O on Monday said it had signed a new deal with Apple AAPL.O to supply 5G chips to the iPhone maker until at least 2026. Under the deal announced Monday, Qualcomm said it will supply Apple with chips for phones that will come out each year until 2026. Qualcomm did not disclose the value of the deal, saying only that the terms are "similar" to its previous agreement.
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13817.0
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2023-09-11 00:00:00 UTC
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US STOCKS-Futures advance on Tesla boost, inflation data in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-advance-on-tesla-boost-inflation-data-in-focus
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nan
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nan
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By Ankika Biswas and Shristi Achar A
Sept 11 (Reuters) - Wall Street futures gained on Monday as Tesla shares rose, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path.
The three major indexes logged weekly declines on Friday as strength in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
Investors now await the crucial consumer and producer prices data as well as retail sales numbers due later this week.
The consumer price data on Wednesday will indicate whether the U.S. economy is on track for a so-called soft landing that could allow the Fed to bring down inflation without sharply impacting growth.
"This could be a defining period for stocks as we get some clarity on whether the rate hiking cycle is truly at or near its end or if there is more work to do in the battle against inflation," said Russ Mould, investment director at AJ Bell in a note.
"Until the market knows where the terminal interest rate lies and what the new normal is in terms of borrowing costs, we should probably steel ourselves for further volatility."
Traders see a 93% chance of the central bank holding its interest rates at current levels in the September meeting, while their odds for a pause in November stand at 55.4%, according to CME FedWatch Tool.
Fed officials have entered a blackout period, during which they usually do not make public comments, until the policy decision outcome on Sept. 20.
At 7:04 a.m. ET, Dow e-minis 1YMcv1 were up 81 points, or 0.23%, S&P 500 e-minis EScv1 were up 19.5 points, or 0.44%, and Nasdaq 100 e-minis NQcv1 were up 96.75 points, or 0.63%.
Tesla TSLA.O climbed 6.4% in premarket trading as Morgan Stanley upgraded the EV maker to "overweight" from "equal-weight" due to potential growth in its market value from Dojo, the firm's supercomputer.
Apple AAPL.O edged up 0.8% following a near 6% decline last week on China's restrictions of iPhone usage for government officials, ahead of its fall event on Sept. 12.
Hostess BrandsTWNK.O jumped 14.9% as Jif peanut butter maker J.M. Smucker SJM.N is nearing a deal to buy the Twinkies snack cakes owner for close to $5 billion, according to sources.
Shares of Boeing BA.N rose 1.4% after the White House said that Vietnam Airlines' HVN.HM deal to buy 50 737 Max jets from the planemaker was worth $7.8 billion.
Data over the weekend showed China's consumer prices returned to positive territory in August, while factory-gate price declines slowed, as deflation pressures ease amid signs of stabilization in the economy.
U.S.-listed shares of Chinese firms PDD Holdings PDD.O, Xpeng XPEV.N, Baidu BIDU.O rose between 1.9% and 4.7%, while the iShares China Large-Cap ETF FXI.N gained 1.4%.
Meta PlatformsMETA.O added 1.3% after a report on Sunday said the firm was working on a new, more powerful artificial-intelligence system.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple AAPL.O edged up 0.8% following a near 6% decline last week on China's restrictions of iPhone usage for government officials, ahead of its fall event on Sept. 12. By Ankika Biswas and Shristi Achar A Sept 11 (Reuters) - Wall Street futures gained on Monday as Tesla shares rose, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. The three major indexes logged weekly declines on Friday as strength in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
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Apple AAPL.O edged up 0.8% following a near 6% decline last week on China's restrictions of iPhone usage for government officials, ahead of its fall event on Sept. 12. By Ankika Biswas and Shristi Achar A Sept 11 (Reuters) - Wall Street futures gained on Monday as Tesla shares rose, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. The consumer price data on Wednesday will indicate whether the U.S. economy is on track for a so-called soft landing that could allow the Fed to bring down inflation without sharply impacting growth.
|
Apple AAPL.O edged up 0.8% following a near 6% decline last week on China's restrictions of iPhone usage for government officials, ahead of its fall event on Sept. 12. By Ankika Biswas and Shristi Achar A Sept 11 (Reuters) - Wall Street futures gained on Monday as Tesla shares rose, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. The three major indexes logged weekly declines on Friday as strength in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
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Apple AAPL.O edged up 0.8% following a near 6% decline last week on China's restrictions of iPhone usage for government officials, ahead of its fall event on Sept. 12. By Ankika Biswas and Shristi Achar A Sept 11 (Reuters) - Wall Street futures gained on Monday as Tesla shares rose, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. The three major indexes logged weekly declines on Friday as strength in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
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13818.0
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2023-09-11 00:00:00 UTC
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Apple Stock: Buy, Sell, or Hold?
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-buy-sell-or-hold-1
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nan
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nan
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Apple (NASDAQ: AAPL), with a nearly $3 trillion market capitalization, has become the world's most valuable company. While that's an extraordinary achievement, it's important to look forward when evaluating a stock. This will require assessing the company's prospects and valuation before deciding whether you should buy, sell, or hold on to your Apple shares.
So, let's dive in.
Image source: Getty Images.
iPhone
The iPhone remains an important revenue driver. For the first nine months of fiscal 2023, which ended on July 1, iPhone sales accounted for 53% of Apple's sales.
But devices sales have slowed this year. In the most recent quarter, iPhone sales dropped by 2.4% to $39.7 billion. That's part of a broader industry trend that has affected the overall smartphone market.
Nonetheless, based on the number of shipments, Apple's market share has dropped this year. In the second calendar quarter, iPhone's share fell to 17% from 23% at the end of 2022, based on data from Counterpoint.
Apple will likely launch its latest iPhone version this month. Historically, this has been a boon to sales. Whether that happens this time remains to be seen, but since Apple relies on the product for more than half of its sales, it's imperative that sales don't disappoint.
Services
While the iPhone is important to Apple's sales and earnings, the company's results aren't entirely dependent on the device, of course. Its services include advertising, digital content (e.g., the App Store), cloud services, and payment services.
Services tend to have more recurring, predictable revenue than products. And it's a higher margin business. Last quarter, services had a gross margin of 70.5%, nearly double that of product sales.
These have been growing nicely. In the latest quarter, service sales were $21.2 billion, 8.2% higher than a year ago. With more than 2 billion active devices, Apple remains in a good position to continue growing this revenue source.
Rewarding shareholders
Even with sluggish iPhone sales, Apple has been a free-cash-flow (FCF) machine. In the first nine months of this fiscal year, FCF was $80.1 billion. The company spends the bulk of its FCF on dividends and share repurchases. These totaled $67.8 billion. Buying back its own shares has been a good use of capital. This fiscal year, it paid an average price of $153.70, about 20% below the current share price.
The board of directors has also consistently raised dividends; earlier this year it enacted a penny increase to $0.24. But the 0.5% dividend yield trails the S&P 500's 1.5%.
Valuation
Despite sluggish iPhone sales, Apple's stock has risen by an astonishing 46% in 2023, easily besting the S&P 500's 17.1%. Unfortunately, the stock's sharp increase means Apple's shares have become more expensive. Apple's stock sells at a price-to-sales ratio of nearly 8. That's up from around 5 at the start of the year.
Services have been doing well, but it's tough to buy shares at a richer valuation when iPhone sales have been slowing. Apple will also launch Vision Pro, a virtual reality/augmented reality headset. Initially selling at about $3,500, it has a high price point. It remains unclear how Apple's customers, which have been loyal, will react.
I would suggest holding the shares while keeping an eye on how things develop after Apple releases its new phone.
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL), with a nearly $3 trillion market capitalization, has become the world's most valuable company. This will require assessing the company's prospects and valuation before deciding whether you should buy, sell, or hold on to your Apple shares. Services While the iPhone is important to Apple's sales and earnings, the company's results aren't entirely dependent on the device, of course.
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Apple (NASDAQ: AAPL), with a nearly $3 trillion market capitalization, has become the world's most valuable company. In the latest quarter, service sales were $21.2 billion, 8.2% higher than a year ago. With more than 2 billion active devices, Apple remains in a good position to continue growing this revenue source.
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Apple (NASDAQ: AAPL), with a nearly $3 trillion market capitalization, has become the world's most valuable company. For the first nine months of fiscal 2023, which ended on July 1, iPhone sales accounted for 53% of Apple's sales. Services While the iPhone is important to Apple's sales and earnings, the company's results aren't entirely dependent on the device, of course.
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Apple (NASDAQ: AAPL), with a nearly $3 trillion market capitalization, has become the world's most valuable company. For the first nine months of fiscal 2023, which ended on July 1, iPhone sales accounted for 53% of Apple's sales. With more than 2 billion active devices, Apple remains in a good position to continue growing this revenue source.
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13819.0
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2023-09-11 00:00:00 UTC
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Should iShares S&P 500 Growth ETF (IVW) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-sp-500-growth-etf-ivw-be-on-your-investing-radar-9
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nan
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nan
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The iShares S&P 500 Growth ETF (IVW) was launched on 05/22/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $35.42 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.88%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 35.90% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.11% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 45.31% of total assets under management.
Performance and Risk
IVW seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large capitalization growth sector of the U.S. equity market.
The ETF has added roughly 22.33% so far this year and was up about 10.31% in the last one year (as of 09/11/2023). In the past 52-week period, it has traded between $56.73 and $72.66.
The ETF has a beta of 1.04 and standard deviation of 22.15% for the trailing three-year period, making it a medium risk choice in the space. With about 237 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 500 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IVW is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $93.12 billion in assets, Invesco QQQ has $204.79 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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iShares S&P 500 Growth ETF (IVW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.11% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $35.42 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.11% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The iShares S&P 500 Growth ETF (IVW) was launched on 05/22/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.11% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). The iShares S&P 500 Growth ETF (IVW) was launched on 05/22/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.11% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The top 10 holdings account for about 45.31% of total assets under management.
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13820.0
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2023-09-11 00:00:00 UTC
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Long Straddle Screener Results For September 11th
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AAPL
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https://www.nasdaq.com/articles/long-straddle-screener-results-for-september-11th
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nan
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nan
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Volatility is dropping back down again, with the VIX Index closing at 13.84 on Friday. When volatility is low, options become cheaper, so today we’re taking a look at the Long Straddle Screener.
A long straddle is an advanced options strategy used when a trader is seeking to profit from a big move in either direction and / or an increase in implied volatility.
To execute the strategy, a trader would buy a call and a put with the following conditions:
Both options must use the same underlying stock
Both options must have the same expiration
Both options must have the same strike price
Since it involves having to buy both a call and a put, the trader must pay two premiums up-front, which also happens to be the maximum possible loss.
The potential profit is theoretically unlimited, although the trade will lose money each day through time decay if a big move does not occur.
The position means you will start with a net debit and only profit when the underlying stock rises above the upper break-even point or falls below the lower break-even point.
Profits can be made with a smaller price move if the move happens early in the trade.
Let’s take a look at Barchart’s Long Straddle Screener for September 11th. I have added a filer for Market Cap above 40b and total call volume above 2,000.
The screener shows some interesting long straddle trades on popular stocks such as WMT, AAPL, RTX, PFE, TGT, AMD and META. Let’s walk through a couple of examples.
WMT Long Straddle Example
Let’s take a look at the second line item – a long straddle on WMT.
Using the October 10th expiry, the trade would involve buying the $165-strike call and the $165-strike put. The premium paid for the trade would be $275, which is also the maximum loss. The maximum profit is theoretically unlimited. The lower breakeven price is $159.18 and the upper breakeven price is $170.82.
The premium paid is equal to 3.55% of the stock price and the probability of success is estimated at 45.9%.
The Barchart Technical Opinion rating is a 100% Buy and ranks in the Top 1% of all short term signal directions.
Long term indicators fully support a continuation of the trend.
The market is in highly overbought territory. Beware of a trend reversal.
Implied volatility is currently 13.14% compared to a twelve-month low of 12.06% and a high of 31.94%.
PFE Long Straddle Example
Let’s take a look at the sixth line item – a long straddle on CSCO.
Using the December 15th expiry, the trade would involve buying the $35 strike call and the $35 strike put. The premium paid for the trade would be $348, which is also the maximum loss. The maximum profit is theoretically unlimited. The lower breakeven price is $31.52 and the upper breakeven price is $38.48.
The premium paid is equal to 10.16% of the stock price and the probability of success is estimated at 44.4%.
The Barchart Technical Opinion rating is a 100% Sell with a Strengthening short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
The market is in highly oversold territory. Beware of a trend reversal.
Implied volatility is currently 21.34% compared to a twelve-month low of 18.44% and a high of 35.97%.
TGT Long Straddle Example
Let’s take a look at one final straddle, the seventh line item – a long straddle on TGT.
Using the October 20th expiry, the trade would involve buying the $125 strike call and the $125 strike put. The premium paid for the trade would be $775, which is also the maximum loss. The maximum profit is theoretically unlimited. The lower breakeven price is $117.25 and the upper breakeven price is $132.75.
The premium paid is equal to 6.27% of the stock price and the probability of success is estimated at 44.0%.
The Barchart Technical Opinion rating is a 100% Sell with a Strengthening short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
Implied volatility is currently 23.00% compared to a twelve-month low of 22.62% and a high of 52.03%.
Mitigating Risk
Long straddles can lose money fairly quickly if the stock stay flat, and / or if implied volatility drops.
Position sizing is important so that a large loss does not cause more than a 1-2% loss in total portfolio value. Another good rule of thumb is a 20-30% stop loss.
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
Earnings, CPI and Other Key Things to Watch This Week
2 AI Stocks to Transform Your Portfolio
Another Wave of Lower Prices for the British Pound – Want to Know When?
Stocks Post Modest Gains on Hopes for a Fed Pause
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The screener shows some interesting long straddle trades on popular stocks such as WMT, AAPL, RTX, PFE, TGT, AMD and META. Mitigating Risk Long straddles can lose money fairly quickly if the stock stay flat, and / or if implied volatility drops. Stocks Post Modest Gains on Hopes for a Fed Pause On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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The Barchart Technical Opinion rating is a 100% Sell with a Strengthening short term outlook on maintaining the current direction. The screener shows some interesting long straddle trades on popular stocks such as WMT, AAPL, RTX, PFE, TGT, AMD and META. Using the October 20th expiry, the trade would involve buying the $125 strike call and the $125 strike put.
|
The screener shows some interesting long straddle trades on popular stocks such as WMT, AAPL, RTX, PFE, TGT, AMD and META. A long straddle is an advanced options strategy used when a trader is seeking to profit from a big move in either direction and / or an increase in implied volatility. To execute the strategy, a trader would buy a call and a put with the following conditions: Both options must use the same underlying stock Both options must have the same expiration Both options must have the same strike price Since it involves having to buy both a call and a put, the trader must pay two premiums up-front, which also happens to be the maximum possible loss.
|
The screener shows some interesting long straddle trades on popular stocks such as WMT, AAPL, RTX, PFE, TGT, AMD and META. When volatility is low, options become cheaper, so today we’re taking a look at the Long Straddle Screener. A long straddle is an advanced options strategy used when a trader is seeking to profit from a big move in either direction and / or an increase in implied volatility.
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13821.0
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2023-09-11 00:00:00 UTC
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Google's rivals get day in court as momentous US antitrust trial begins
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AAPL
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https://www.nasdaq.com/articles/googles-rivals-get-day-in-court-as-momentous-us-antitrust-trial-begins
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nan
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nan
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By Diane Bartz
WASHINGTON, Sept 11 (Reuters) - DuckDuckGo, which has long complained that Google's tactics have made it too tough to get people to use their search engine on a mobile phone, will be one of many rivals to the online search giant eyeing a once-in-a-generation antitrust trial set to begin Tuesday.
The United States will argue Google didn't play by the rules in its efforts to dominate online search in a trial seen as a battle for the soul of the Internet.
The U.S. Justice Department is expected to detail how Google paid billions of dollars annually to device makers like Apple Inc. AAPL.O, wireless companies like AT&T T.N and browser makers like Mozilla to keep Google's search engine atop the leader board.
DuckDuckGo has also complained, for example, that removing Google as the default search engine on a device and replacing it with DuckDuckGo takes too many steps, helping keep them to a measly 2.3% market share.
DuckDuckGo, MicrosoftMSFT.Oand Yahoo are among a long list of Google competitors who will be watching the trial closely.
"Google makes it unduly difficult to use DuckDuckGo by default. We're glad this issue is finally going to have its day in court," said DuckDuckGo spokesman Kamyl Bazbaz who said that Google had a "stranglehold on major distribution points for more than a decade."
Google has denied wrongdoing and is prepared to vigorously defend itself.
The legal fight has huge implications for Big Tech, which has been accused of buying or strangling small competitors but has insulated itself against many accusations of breaking antitrust law because the services the companies provide to users are free, as in the case of Alphabet's Google GOOGL.O and Facebook META.O, or low price, as in the case of Amazon.com AMZN.O.
“It would be difficult to overstate the importance of this case, particularly for monopolies and companies with significant market share,” antitrust lawyer Luke Hasskamp told Reuters.
“This will be a major case, particularly for the major tech companies of the world (Google, Apple, Twitter, and others), which have grown to have an outsized role in nearly all our lives,” he added.
Previous antitrust trials of similar importance include Microsoft, filed in 1998, and AT&T, filed in 1974. The AT&T breakup in 1982 is credited with paving the way for the modern cell phone industry while the fight with Microsoft is credited with opening space for Google and others on the internet.
Congress tried to rein in Big Tech last year but largely missed. It considered bills to check the market power of the companies, like legislation to prevent them from preferencing their own products, but failed to pass the most aggressive of them.
Big Tech's rivals now pin their hope on Judge Amit Mehta, who was nominated by former President Barack Obama to the U.S. District Court for the District of Columbia.
The lawsuit that goes to trial was brought by former President Donald Trump's Justice Department. In a rare show of bipartisan agreement, President Joe Biden's Justice Department has pressed on with the lawsuit and filed a second one against Google in January focused on advertising technology.
Judge Mehta will decide if Google has broken antitrust law in this first trial, and, if so, what should be done. The government has asked the judge to order Google to stop any illegal activity but also urged "structural relief as needed," raising the possibility that the tech giant could be ordered broken up.
The government's strongest arguments are those against Google's revenue sharing agreements with Android makers, which requires Google to be the only search on the smartphone in exchange for a percentage of search advertising revenue, said Daniel McCuaig, a partner at Cohen Milstein who was formerly with the U.S. Justice Department's Antitrust Division.
(Reporting by Diane Bartz; additional reporting by Mike Scarcella; editing by Diane Craft)
((Diane.Bartz@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The U.S. Justice Department is expected to detail how Google paid billions of dollars annually to device makers like Apple Inc. AAPL.O, wireless companies like AT&T T.N and browser makers like Mozilla to keep Google's search engine atop the leader board. The United States will argue Google didn't play by the rules in its efforts to dominate online search in a trial seen as a battle for the soul of the Internet. We're glad this issue is finally going to have its day in court," said DuckDuckGo spokesman Kamyl Bazbaz who said that Google had a "stranglehold on major distribution points for more than a decade."
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The U.S. Justice Department is expected to detail how Google paid billions of dollars annually to device makers like Apple Inc. AAPL.O, wireless companies like AT&T T.N and browser makers like Mozilla to keep Google's search engine atop the leader board. By Diane Bartz WASHINGTON, Sept 11 (Reuters) - DuckDuckGo, which has long complained that Google's tactics have made it too tough to get people to use their search engine on a mobile phone, will be one of many rivals to the online search giant eyeing a once-in-a-generation antitrust trial set to begin Tuesday. “This will be a major case, particularly for the major tech companies of the world (Google, Apple, Twitter, and others), which have grown to have an outsized role in nearly all our lives,” he added.
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The U.S. Justice Department is expected to detail how Google paid billions of dollars annually to device makers like Apple Inc. AAPL.O, wireless companies like AT&T T.N and browser makers like Mozilla to keep Google's search engine atop the leader board. By Diane Bartz WASHINGTON, Sept 11 (Reuters) - DuckDuckGo, which has long complained that Google's tactics have made it too tough to get people to use their search engine on a mobile phone, will be one of many rivals to the online search giant eyeing a once-in-a-generation antitrust trial set to begin Tuesday. The government's strongest arguments are those against Google's revenue sharing agreements with Android makers, which requires Google to be the only search on the smartphone in exchange for a percentage of search advertising revenue, said Daniel McCuaig, a partner at Cohen Milstein who was formerly with the U.S. Justice Department's Antitrust Division.
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The U.S. Justice Department is expected to detail how Google paid billions of dollars annually to device makers like Apple Inc. AAPL.O, wireless companies like AT&T T.N and browser makers like Mozilla to keep Google's search engine atop the leader board. DuckDuckGo has also complained, for example, that removing Google as the default search engine on a device and replacing it with DuckDuckGo takes too many steps, helping keep them to a measly 2.3% market share. In a rare show of bipartisan agreement, President Joe Biden's Justice Department has pressed on with the lawsuit and filed a second one against Google in January focused on advertising technology.
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13822.0
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2023-09-11 00:00:00 UTC
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1 FAANG Stock That's a Surefire Buy in September and 1 to Avoid
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AAPL
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https://www.nasdaq.com/articles/1-faang-stock-thats-a-surefire-buy-in-september-and-1-to-avoid
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nan
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nan
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It's been a topsy-turvy start to the decade for Wall Street. The market's three major indexes have navigated their way through two bear markets (2020 and 2022) and a period of euphoria (2021), which saw the indexes touch multiple record-closing highs.
When volatility picks up on Wall Street, investors have a tendency to flock to time-tested outperformers. The preeminent FAANG stocks come to mind.
The "FAANG stocks" are comprised of:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Image source: Getty Images.
These are five companies that have vastly outpaced the benchmark S&P 500 over the trailing decade. Alphabet (Class A shares, GOOGL) is the worst-performer of the bunch, and it's more than tripled the return of the S&P 500 (523% vs. 172%, as of Sept. 5, 2023) over the trailing-10-year period.
Further, these are businesses that offer sustained competitive advantages.
Meta Platforms owns the most attractive social media "real estate" on the planet. Facebook, Instagram, WhatsApp, and Facebook Messenger attracted nearly 3.9 billion monthly active users during the June-ended quarter.
Apple is the clear-cut market share leader for smartphone sales in the United States. Additionally, its buyback program is unsurpassed -- approximately $600 billion in share repurchases since the start of 2013.
Amazon accounts for nearly 40% of all U.S. online retail sales, according to eMarketer, and it operates the world's leading cloud infrastructure service (Amazon Web Services).
Netflix holds the largest share of the streaming services market domestically and internationally.
Alphabet's Google has held a 90% or greater share of the global internet search market for more than eight years.
In other words, there are good reasons for these five stocks to have outperformed for so long. However, their outlooks moving forward differ greatly. In the month of September, one FAANG stock remains remarkably inexpensive and has abundant catalysts in its corner, while another appears especially pricey in an uncertain environment.
The FAANG stock that's a surefire buy in September: Meta Platforms
Among the five FAANG stocks, the one that stands out as an amazing value for patient investors in September is social media company Meta Platforms.
Like every other publicly listed company, Meta has headwinds to contend with. Its biggest challenge is that a number of economic indicators and predictive tools suggest the U.S. economy could weaken in the quarters to come.
Meta generated more than 98% of its second-quarter revenue from advertising, and businesses tend to quickly pare back their ad spending at the first signs of trouble. In other words, fears about a weakening U.S. economy, or an actual weakening of U.S. gross domestic product, could really hit Meta's topline and bottom-line growth over the short run.
But this is a two-sided coin that undeniably favors optimists. Even though recessions are an inevitable part of the U.S. economic cycle, no recession after World War II has lasted longer than 18 months. By comparison, most periods of economic expansion have handily surpassed 18 months. The point being that Meta's core revenue driver (advertising) spends a disproportionate amount of time in a favorable environment.
As noted earlier, Meta's social media assets are something special. Although monthly active user growth has slowed, Facebook, Instagram, WhatsApp, and Facebook Messenger, are consistently among the most-downloaded apps in the world. Additionally, Threads made history by reaching 100 million users in a matter of days following its July launch. Merchants are well aware that their best chance to reach and target users is by advertising on Meta's social sites. This means plenty of ad-pricing power in Meta's corner.
Something else Meta has that few other social media platforms possess is the cash flow to take chances. The company closed out June with more than $53 billion in cash, cash equivalents, and marketable securities. It also generated $31.3 billion in net cash from its operating activities through the first six months of the current year.
Meta has taken a lot of heat for CEO Mark Zuckerberg's aggressive spending on metaverse products and various augmented/virtual reality applications. But with the company on pace to generate nearly $63 billion in net cash from operations this year, and sitting on $53.4 billion in cash, cash equivalents, and marketable securities, this is a risk Meta can afford to take. If successful, Meta should be a prime player in the rise of 3D virtual environments later this decade.
But the real eye-popper with Meta Platforms is its valuation. Despite its shares more than tripling since its 2022 bear market low, investors can buy Meta stock right now for 18X forward-year earnings and less than 11X Wall Street's forecast cash flow in the upcoming year. For context, Meta's forward-year price-to-earnings ratio is cheaper than the benchmark S&P 500, and its consensus forward-year price-to-cash-flow ratio is well below the nearly 16X multiple it averaged between 2018 and 2022.
Image source: Getty Images.
The FAANG stock that's worth avoiding in September: Netflix
However, not all of the FAANG stocks are necessarily worth buying. In September, streaming service giant Netflix is the company I'd suggest investors steer clear of.
Just as Meta has headwinds that could, in theory, send its share price lower, Netflix has catalysts that could move its valuation even higher. The one factor that's undeniably working in Netflix's favor is that it's the only pure-play streaming service that's generating a recurring profit. Though numerous legacy media companies have debuted streaming platforms, these segments tend to be sore spots on their quarterly reports. As for Netflix, it's on track to generate close to $12 in earnings per share this year, which works out to about $5.3 billion on an adjusted basis.
Netflix also has strength in numbers. Its more than 238 million global paying subscribers is tops among streaming services. Further, Netflix remains the top dog when it comes to original content. A study from BB Media in 2022, which was commissioned by Media Play News, found that Netflix accounted for 37% of the 8,877 original movie and show titles spanning 41 streaming platforms in the United States.
Yet there are also plenty of reasons to believe Netflix's stock could be stuck on rewind in the not-too-distant future.
Front-and-center is the ongoing strike by the Writers Guild of America and Screen Actors Guild-American Federation of Television and Radio Artists. The writers have been on strike for more than four months, with the screen actors joining the writers on strike on July 14. Though Netflix's library can provide some degree of protection from a short-lived strike, content creation is paramount to Netflix's success. Without a healthy original content pipeline, it could struggle to grow and retain paying members.
Another problem for Netflix is that its first-mover advantages in the streaming space are waning. While it still holds the highest streaming share in domestic and international markets, legacy media operators have proved more than willing to sacrifice near-term profits to land subscribers. Since many legacy media networks have well-recognized brands and deep pockets, they could prove formidable foes for streaming eyeballs and permanently slow Netflix's once-lofty growth rate.
The third issue for Netflix may be the toughest to overcome: its valuation. Despite raising its free cash flow forecast for the year, Netflix is the absolute priciest FAANG stock relative to its operating cash flow.
To be fair, the company's multiple relative to its cash flow has declined meaningfully from earlier this decade. Nevertheless, investors are paying 31X forward-year cash flow for a company that's seen its growth rate decelerate considerably. The risk-versus-reward simply doesn't make sense here for investors.
10 stocks we like better than Meta Platforms
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 5, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The "FAANG stocks" are comprised of: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. Despite its shares more than tripling since its 2022 bear market low, investors can buy Meta stock right now for 18X forward-year earnings and less than 11X Wall Street's forecast cash flow in the upcoming year. While it still holds the highest streaming share in domestic and international markets, legacy media operators have proved more than willing to sacrifice near-term profits to land subscribers.
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The "FAANG stocks" are comprised of: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. Although monthly active user growth has slowed, Facebook, Instagram, WhatsApp, and Facebook Messenger, are consistently among the most-downloaded apps in the world. Despite its shares more than tripling since its 2022 bear market low, investors can buy Meta stock right now for 18X forward-year earnings and less than 11X Wall Street's forecast cash flow in the upcoming year.
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The "FAANG stocks" are comprised of: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. The FAANG stock that's a surefire buy in September: Meta Platforms Among the five FAANG stocks, the one that stands out as an amazing value for patient investors in September is social media company Meta Platforms. Despite its shares more than tripling since its 2022 bear market low, investors can buy Meta stock right now for 18X forward-year earnings and less than 11X Wall Street's forecast cash flow in the upcoming year.
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The "FAANG stocks" are comprised of: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. The FAANG stock that's a surefire buy in September: Meta Platforms Among the five FAANG stocks, the one that stands out as an amazing value for patient investors in September is social media company Meta Platforms. Despite its shares more than tripling since its 2022 bear market low, investors can buy Meta stock right now for 18X forward-year earnings and less than 11X Wall Street's forecast cash flow in the upcoming year.
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13823.0
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2023-09-11 00:00:00 UTC
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Want to Get Richer? 3 Top Warren Buffett Stocks to Buy Now That Could Help You Build Lasting Wealth
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AAPL
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https://www.nasdaq.com/articles/want-to-get-richer-3-top-warren-buffett-stocks-to-buy-now-that-could-help-you-build
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nan
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nan
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Not all billionaires make for great role models. But if you're striving to create wealth in the stock market, you'd be hard-pressed to find a better mentor than Warren Buffett.
Buffett is unquestionably one of the best investors of all time. The business he helped build into a masterpiece of American capitalism, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has delivered fortune-building gains to its investors for more than 50 years.
Fortunately, it's relatively easy to invest alongside Buffett by buying and holding shares in the great companies Berkshire has invested in. Here are three Buffett-approved stocks that could help you grow richer in the coming years.
1. Visa
Powerful, enduring trends can create lucrative opportunities for investors. The global shift from cash to digital forms of payment is one such megatrend. As the leading credit and debit card processing network, Visa (NYSE: V) is perfectly positioned to capture the lion's share of the payment industry's profits -- and deliver them to its shareholders.
Visa's network extends across more than 200 countries and territories. Its scale is breathtaking. Visa processed 270 billion transactions totaling $14.5 trillion during the year ended June 30. Its 4.2 billion credit and debit cards are accepted at over 100 merchant locations.
Visa's business model is similar in some ways to that of a tollbooth. It earns a small fee for every transaction it facilitates. Those fees helped Visa earn a staggering $16.5 billion in profits over the trailing 12 months -- a figure that should climb steadily higher in the years ahead.
2. Coca-Cola
It's true that consumers are moving away from sugary drinks. Fortunately, Buffett favorite Coca-Cola (NYSE: KO) is far more than just a soda company.
The beverage giant's diversification efforts have yielded healthier offerings such as milk, juice, tea, coffee, and nutrient-enhanced water. Popular brands like Fairlife, Simply, Gold Peak, Costa Coffee, and Vitaminwater are housed within Coca-Cola's unrivaled global marketing and distribution system.
Coca-Cola's ability to launch new products that satisfy consumers' shifting preferences should enable it to grow its revenue and profits steadily higher over time. The beverage titan has increased the cash dividend it pays to its shareowners for 61 straight years.
This impressive level of consistency makes Coca-Cola a low-risk, all-weather stock. And with its shares currently yielding more than 3%, now is a great time to invest in this stalwart company.
3. Apple
We'll close with Buffett's largest holding. Berkshire Hathaway owns a stunning $162 billion worth of Apple (NASDAQ: AAPL) stock.
It's not hard to see why the iPhone maker has caught Buffett's fancy. Apple's products are beloved by its loyal customers for their quality and reliability. Its brand prestige allows Apple to command higher prices for its devices, which fuels its unmatched profitability. Buffett also no doubt appreciates Apple's fortress-like balance sheet, which contained over $166 billion in cash investments as of July 1.
Moreover, Buffett understands the value of Apple's steadily expanding services business. With more than 2 billion active devices and over 1 billion paid subscriptions, Apple's services produce recurring, utility-like streams of high-margin revenue.
You'd be forgiven for thinking those astronomical device and subscriber metrics would preclude Apple from growing further. But that's just not the case. Massive international markets like India remain largely untapped. At the same time, Apple's investments in game-changing technologies like augmented reality and artificial intelligence are likely to unearth exciting new growth opportunities.
Buffett once said that Apple is "probably the best business I know in the world." With $95 billion in net income over the trailing 12 months, it's certainly one of the most lucrative. Buy shares today, and you invest alongside Buffett and claim your share of this tech titan's future profits.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 5, 2023
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Visa. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire Hathaway owns a stunning $162 billion worth of Apple (NASDAQ: AAPL) stock. As the leading credit and debit card processing network, Visa (NYSE: V) is perfectly positioned to capture the lion's share of the payment industry's profits -- and deliver them to its shareholders. Those fees helped Visa earn a staggering $16.5 billion in profits over the trailing 12 months -- a figure that should climb steadily higher in the years ahead.
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Berkshire Hathaway owns a stunning $162 billion worth of Apple (NASDAQ: AAPL) stock. Fortunately, it's relatively easy to invest alongside Buffett by buying and holding shares in the great companies Berkshire has invested in. As the leading credit and debit card processing network, Visa (NYSE: V) is perfectly positioned to capture the lion's share of the payment industry's profits -- and deliver them to its shareholders.
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Berkshire Hathaway owns a stunning $162 billion worth of Apple (NASDAQ: AAPL) stock. Fortunately, it's relatively easy to invest alongside Buffett by buying and holding shares in the great companies Berkshire has invested in. See the 10 stocks *Stock Advisor returns as of September 5, 2023 Joe Tenebruso has no position in any of the stocks mentioned.
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Berkshire Hathaway owns a stunning $162 billion worth of Apple (NASDAQ: AAPL) stock. As the leading credit and debit card processing network, Visa (NYSE: V) is perfectly positioned to capture the lion's share of the payment industry's profits -- and deliver them to its shareholders. And with its shares currently yielding more than 3%, now is a great time to invest in this stalwart company.
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13824.0
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2023-09-11 00:00:00 UTC
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Best Inverse/Leveraged ETFs of Last Week
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AAPL
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https://www.nasdaq.com/articles/best-inverse-leveraged-etfs-of-last-week-25
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nan
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nan
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Wall Street delivered downbeat performances last week due to rising rates. The S&P 500 (down 1.3%), the Dow Jones (down 0.8%), the Nasdaq (down 1.9%) and the Russell 2000 (down 3.6%) – all slumped last week (read: A Guide to Higher Interest Rates and ETFs).
Worries over longer-than-expected higher interest rates have been playing foul on the stock market in recent weeks. The series of upbeat economic data as well as the latest warning from the Fed officials revived speculation that the Fed could lift interest rates again. Benchmark U.S. Treasury yields hit a high of 4.30% on Sep 6, 2023 and ended at 4.26%.
The tech giant Apple Inc. AAPL shed nearly $200 billion in market value in just two days amid the reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. Notably, China is Apple’s third-largest market, accounting for 18% of the company’s total revenues last year (read: What Lies Ahead for Apple ETFs After iPhone Use Ban?).
WTI crude oil rose about 1.4% last week due to tightening supply conditions. Both benchmarks reached a 10-month high last week with more upside potential. Meanwhile, Indian and Japanese stocks hit 52-week highs last week (read: India ETFs Hitting 52-Week Highs: Here's Why).
The Japanese economy is showing strong expansion driven by foreign buying, a still-easy BOJ policy and a weaker yen. In particular, currency-hedged ETFs outperformed their unhedged peers as the surging U.S. dollar knocked down the returns of international investments.
Against this backdrop, below we highlight a few best-performing ETFs of last week.
ETFs in Focus
Roundhill Cannabis ETF (WEED) – Up 22.1%
The Roundhill Cannabis ETF is designed to offer investors exposure to the cannabis sector. The fund charges 40 bps in fees.
Breakwave Dry Bulk Shipping ETF (BDRY) – Up 9.1%
The underlying Capesize 5TC Index, Panamax 4TC Index & Supramax 6TC Index measure rates for shipping dry bulk freight. The expense ratio of the fund is 3.50%.
Simplify Tail Risk Strategy ETF (CYA) – Up 7.1%
The Simplify Tail Risk Strategy ETF seeks to provide investors with a standalone solution for hedging diversified portfolios against severe equity market selloffs. The fund charges 84 bps in fees.
AdvisorShares Ranger Equity Bear ETF (HDGE) – Up 3.8%
The AdvisorShares Ranger Equity Bear ETF seeks capital appreciation through short sales of domestically traded equity securities. The expense ratio of 4.29%.
AdvisorShares Dorsey Wright Short ETF (DWSH) – Up 3.8%
The AdvisorShares Dorsey Wright Short ETF is actively-managed with an investment focus that involves buying securities that have appreciated in price more than the other securities in the investment universe and holding those securities until they underperform. The expense ratio of 2.77%.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
AdvisorShares Ranger Equity Bear ETF (HDGE): ETF Research Reports
Breakwave Dry Bulk Shipping ETF (BDRY): ETF Research Reports
AdvisorShares Dorsey Wright Short ETF (DWSH): ETF Research Reports
Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports
Roundhill Cannabis ETF (WEED): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The tech giant Apple Inc. AAPL shed nearly $200 billion in market value in just two days amid the reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report AdvisorShares Ranger Equity Bear ETF (HDGE): ETF Research Reports Breakwave Dry Bulk Shipping ETF (BDRY): ETF Research Reports AdvisorShares Dorsey Wright Short ETF (DWSH): ETF Research Reports Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports To read this article on Zacks.com click here. The S&P 500 (down 1.3%), the Dow Jones (down 0.8%), the Nasdaq (down 1.9%) and the Russell 2000 (down 3.6%) – all slumped last week (read: A Guide to Higher Interest Rates and ETFs).
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report AdvisorShares Ranger Equity Bear ETF (HDGE): ETF Research Reports Breakwave Dry Bulk Shipping ETF (BDRY): ETF Research Reports AdvisorShares Dorsey Wright Short ETF (DWSH): ETF Research Reports Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports To read this article on Zacks.com click here. The tech giant Apple Inc. AAPL shed nearly $200 billion in market value in just two days amid the reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. Simplify Tail Risk Strategy ETF (CYA) – Up 7.1% The Simplify Tail Risk Strategy ETF seeks to provide investors with a standalone solution for hedging diversified portfolios against severe equity market selloffs.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report AdvisorShares Ranger Equity Bear ETF (HDGE): ETF Research Reports Breakwave Dry Bulk Shipping ETF (BDRY): ETF Research Reports AdvisorShares Dorsey Wright Short ETF (DWSH): ETF Research Reports Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports To read this article on Zacks.com click here. The tech giant Apple Inc. AAPL shed nearly $200 billion in market value in just two days amid the reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. ETFs in Focus Roundhill Cannabis ETF (WEED) – Up 22.1% The Roundhill Cannabis ETF is designed to offer investors exposure to the cannabis sector.
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The tech giant Apple Inc. AAPL shed nearly $200 billion in market value in just two days amid the reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report AdvisorShares Ranger Equity Bear ETF (HDGE): ETF Research Reports Breakwave Dry Bulk Shipping ETF (BDRY): ETF Research Reports AdvisorShares Dorsey Wright Short ETF (DWSH): ETF Research Reports Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports To read this article on Zacks.com click here. The expense ratio of the fund is 3.50%.
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13825.0
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2023-09-11 00:00:00 UTC
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US STOCKS-Wall St gains as Tesla leads megacap rally; inflation data in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-gains-as-tesla-leads-megacap-rally-inflation-data-in-focus
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nan
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nan
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By Shristi Achar A and Shubham Batra
Sept 11 (Reuters) - Wall Street rose on Monday as Tesla led gains in megacaps, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path.
Tesla TSLA.O jumped 5.8% as Morgan Stanley upgraded it to "overweight" from "equal-weight", saying the EV maker's Dojo supercomputer could boost the company's market value by nearly $600 billion.
Shares of other megacaps including Alphabet GOOGL.O, Microsoft MSFT.O and Amazon AMZN.O rose between 0.4% and 1.1%.
The S&P 500 consumer discretionary stocks .SPLRCD, up 1.6%, led gains in major S&P 500 sectors.
Investors now await the crucial consumer and producer prices data as well as retail sales numbers due later this week.
The consumer price data on Wednesday will indicate whether the U.S. economy is on track for a so-called soft landing that could allow the Fed to bring down inflation without sharply impacting growth.
"The inflation numbers should be expected to be at least flat if not higher and most likely slightly higher as compared to the continued decline we've seen since last year, said Hugh Anderson, managing director at HighTower Advisors.
"I expect at least one more increase, but this is at best. Certainly no cuts, and I don't expect to see cuts for quite some time until we see a dramatic decline in employment."
Wall Street's main indexes had logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
Traders see a 93% chance of the central bank holding its interest rates at current levels in the September meeting, while their odds for a pause in November stand at nearly 61%, according to CME FedWatch Tool.
Treasury yields inched up on Monday, with yields on 2-year note, considered to best reflect short-term interest rate expectations, hovering around 4.9948%.
Fed officials have entered a blackout period, during which they usually do not make public comments, until the policy decision outcome on Sept. 20.
At 9:47 a.m. ET, the Dow Jones Industrial Average .DJI was up 156.55 points, or 0.45%, at 34,733.14, the S&P 500 .SPX was up 19.46 points, or 0.44%, at 4,476.95, and the Nasdaq Composite .IXIC was up 71.42 points, or 0.52%, at 13,832.94.
Among other stocks, QualcommQCOM.O advanced 3.6% after the chipmaker signed a new deal with Apple to supply 5G chips to the iPhone maker until at least 2026.
Hostess BrandsTWNK.O jumped 18.8% after J. M. Smucker SJM.N said it would buy the Twinkies-maker in a $5.6 billion deal.
Meta PlatformsMETA.O added 1.8% after a report on Sunday said the firm was working on a new, more powerful artificial-intelligence system.
Advancing issues outnumbered decliners by a 3.46-to-1 ratio on the NYSE and by a 2.01-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and five new lows, while the Nasdaq recorded 14 new highs and 46 new lows.
(Reporting by Ankika Biswas, Shreyashi Sanyal and Shubham Batra in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Shristi Achar A and Shubham Batra Sept 11 (Reuters) - Wall Street rose on Monday as Tesla led gains in megacaps, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. Wall Street's main indexes had logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer. Traders see a 93% chance of the central bank holding its interest rates at current levels in the September meeting, while their odds for a pause in November stand at nearly 61%, according to CME FedWatch Tool.
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By Shristi Achar A and Shubham Batra Sept 11 (Reuters) - Wall Street rose on Monday as Tesla led gains in megacaps, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. Treasury yields inched up on Monday, with yields on 2-year note, considered to best reflect short-term interest rate expectations, hovering around 4.9948%. The S&P index recorded 10 new 52-week highs and five new lows, while the Nasdaq recorded 14 new highs and 46 new lows.
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By Shristi Achar A and Shubham Batra Sept 11 (Reuters) - Wall Street rose on Monday as Tesla led gains in megacaps, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. Wall Street's main indexes had logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer. (Reporting by Ankika Biswas, Shreyashi Sanyal and Shubham Batra in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi) ((Ankika.Biswas@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Shristi Achar A and Shubham Batra Sept 11 (Reuters) - Wall Street rose on Monday as Tesla led gains in megacaps, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. Tesla TSLA.O jumped 5.8% as Morgan Stanley upgraded it to "overweight" from "equal-weight", saying the EV maker's Dojo supercomputer could boost the company's market value by nearly $600 billion. Investors now await the crucial consumer and producer prices data as well as retail sales numbers due later this week.
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13826.0
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2023-09-11 00:00:00 UTC
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Technology Sector Update for 09/11/2023: LLAP, TSLA, QCOM, RTX, AAPL
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-09-11-2023%3A-llap-tsla-qcom-rtx-aapl
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nan
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nan
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Tech stocks were advancing late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the Philadelphia Semiconductor index up 0.1%.
In corporate news, Terran Orbital (LLAP) shares climbed past 12% after the company said Monday that it officially opened a new 60,000-square-foot satellite manufacturing space, increasing the total size of its complex in California to about 98,000 square feet.
Tesla's (TSLA) Dojo custom supercomputing initiative can add up to $500 billion to the company's enterprise value through faster adoption of robotaxis and network services, Morgan Stanley said in a note. The brokerage upgraded Tesla to overweight from equal-weight and raised its price target to $400 from $250. Tesla shares rose almost 10%.
Qualcomm (QCOM) shares added 4% after the chipmaker said it signed a deal with Apple (AAPL) to supply Snapdragon 5G modem-RF systems for smartphones that will be launched from 2024 to 2026.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Qualcomm (QCOM) shares added 4% after the chipmaker said it signed a deal with Apple (AAPL) to supply Snapdragon 5G modem-RF systems for smartphones that will be launched from 2024 to 2026. Tech stocks were advancing late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the Philadelphia Semiconductor index up 0.1%. In corporate news, Terran Orbital (LLAP) shares climbed past 12% after the company said Monday that it officially opened a new 60,000-square-foot satellite manufacturing space, increasing the total size of its complex in California to about 98,000 square feet.
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Qualcomm (QCOM) shares added 4% after the chipmaker said it signed a deal with Apple (AAPL) to supply Snapdragon 5G modem-RF systems for smartphones that will be launched from 2024 to 2026. In corporate news, Terran Orbital (LLAP) shares climbed past 12% after the company said Monday that it officially opened a new 60,000-square-foot satellite manufacturing space, increasing the total size of its complex in California to about 98,000 square feet. Tesla shares rose almost 10%.
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Qualcomm (QCOM) shares added 4% after the chipmaker said it signed a deal with Apple (AAPL) to supply Snapdragon 5G modem-RF systems for smartphones that will be launched from 2024 to 2026. In corporate news, Terran Orbital (LLAP) shares climbed past 12% after the company said Monday that it officially opened a new 60,000-square-foot satellite manufacturing space, increasing the total size of its complex in California to about 98,000 square feet. Tesla's (TSLA) Dojo custom supercomputing initiative can add up to $500 billion to the company's enterprise value through faster adoption of robotaxis and network services, Morgan Stanley said in a note.
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Qualcomm (QCOM) shares added 4% after the chipmaker said it signed a deal with Apple (AAPL) to supply Snapdragon 5G modem-RF systems for smartphones that will be launched from 2024 to 2026. Tech stocks were advancing late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the Philadelphia Semiconductor index up 0.1%. In corporate news, Terran Orbital (LLAP) shares climbed past 12% after the company said Monday that it officially opened a new 60,000-square-foot satellite manufacturing space, increasing the total size of its complex in California to about 98,000 square feet.
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13827.0
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2023-09-11 00:00:00 UTC
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QQQ vs. XLK: Which Top Tech ETF is Better?
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AAPL
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https://www.nasdaq.com/articles/qqq-vs.-xlk%3A-which-top-tech-etf-is-better
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nan
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nan
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The Invesco QQQ Trust (NASDAQ:QQQ) and the Technology Select Sector SPDR Fund (NYSEARCA:XLK) are two of the biggest and best-known technology ETFs out there. They’ve also been two of the market’s best ETFs to own over the past decade. With the tech sector surging in 2023, both have posted excellent total returns in 2023 so far, with QQQ up 40.8% and XLK up 41.3%. So, what’s the difference between these top tech ETFs, and is one better than the other?
What are QQQ and XLK’s Strategies?
While these are both tech-centric ETFs, their investment universes are somewhat different. QQQ invests in the Nasdaq 100 Index, the largest 100 non-financial stocks in the Nasdaq (NDX). Meanwhile, XLK invests in the technology sector of the S&P 500 (SPX).
Below, we’ll discuss how this plays out in each fund’s holdings.
Comparison of Portfolios
QQQ owns 101 stocks, and its top 10 holdings make up 48.4% of the index. Below, you’ll find an overview of QQQ’s top 10 holdings using TipRanks’ holdings tool.
As you can see, QQQ gives investors exposure to the market’s top mega-cap tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA).
It’s also important to note that while the Nasdaq is a technology-heavy index, there are also plenty of non-technology companies that comprise the index, and several of these companies can be found just outside of QQQ’s top holdings.
For example, Costco (NASDAQ:COST) and Pepsi (NASDAQ:PEP) are the fund’s 11th- and 12th-largest holdings, with weightings of approximately 2% each. This isn’t a bad thing, as these stocks have been phenomenal performers for years, but investors should simply be aware that there are some non-tech stocks here, even though "the Q’s" have become synonymous with technology for many investors.
XLK is slightly different. It focuses specifically on the technology sector of the S&P 500, so there are no non-tech stocks within its holdings. It’s also a bit more concentrated than QQQ -- it owns 65 stocks, and its top 10 holdings make up 69.2% of the fund. Below, you’ll find an overview of XLK’s top 10 holdings.
As you can see, XLK has large positions in some of the same mega-cap tech stocks that QQQ owns, like its massive positions in Microsoft and Apple, which each have weightings of around 22% in the fund. However, look closely, and you’ll notice that many of the other mega-cap tech stocks that QQQ owns aren’t present here in the top 10, or at all, because XLK doesn’t own them.
Why not? Because the S&P index categorizes these stocks differently and does not include them within the technology sector. For example, Amazon and Tesla are classified as consumer discretionary companies, and they make up the largest positions for the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY). Meta Platforms and Alphabet are considered communications services and can be found in the Communications Services Select Sector SPDR Fund (NYSEARCA:XLC).
With these tech behemoths not included in XLK, the fund has room for other large-cap tech stocks in its top 10 holdings, such as Adobe (NASDAQ:ADBE), Salesforce (NYSE:CRM) and Oracle (NYSE:ORCL).
One approach isn’t necessarily better than the other, but QQQ probably gives investors a larger and more comprehensive range of exposure to what many investors think of as ‘technology stocks’ (even though it also includes some non-tech stocks like Pepsi and Costco). XLK has a more narrow definition of tech stocks. It doesn’t include any non-tech stocks, but it’s also missing some of the household names that investors think of when they think of tech stocks. Ultimately, this is the key difference between these two ETFs.
Both strategies yield portfolios with strong Smart Scores. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating. Seven of QQQ’s top 10 holdings feature Smart Scores of 8 or above, while eight of XLK’s top 10 holdings score 8 or better. Nevertheless, QQQ and XLK both have ETF Smart Scores of 8 out of 10.
How Have QQQ and XLK Performed in the Long Term?
Both ETFs have posted dazzling returns over the long term. As discussed above, both ETFs have returned over 40% in 2023 (as of the end of August). Over the past three years, QQQ’s annualized total return has been 9.3%. It has returned 16.0% over the past five years on an annualized basis and 18.6% over the past 10 years on an annualized basis.
XLK has outperformed QQQ on a three-year basis, with a three-year annualized return of 13.4%. It has also beaten QQQ over the past five years, with an annualized return of 19.6%. Even over the past 10 years, it edges QQQ out with an excellent 20.5% annualized return.
Both ETFs have been top performers and have given their investors tremendous gains over the years, but XLK has outpaced QQQ over each of these time frames.
Expenses
These are both very reasonably-priced ETFs. QQQ sports an expense ratio of 0.20%, while XLK is even cheaper at 0.10%. This means that an individual putting $10,000 into QQQ would pay $20 in fees during their first year of investing in the fund, while an individual allocating $10,000 into XLK would pay just $10 in fees.
These are both favorable expense ratios for investors, but over the long run, the XLK investor would save a bit more money. Assuming that each fund returns 5% per year going forward and that the expense ratios stay where they are now, the QQQ investor would pay $255 in fees, while the XLK investor would pay $128 over the course of the decade.
Below, you’ll find a comparison of QQQ and XLK using TipRanks' ETF Comparison Tool, which enables investors to compare up to 20 ETFs at a time on factors like fees, performance, and more.
Is QQQ Stock a Buy, According to Analysts?
Turning to Wall Street, QQQ earns a Moderate Buy consensus rating based on 84 Buys, 18 Holds, and no Sell ratings assigned in the past three months. The average QQQ stock price target of $432.87 implies 14.8% upside potential.
Is XLK Stock a Buy, According to Analysts?
Turning to Wall Street, XLK earns a Moderate Buy consensus rating based on 53 Buys, 14 Holds, and no Sell ratings assigned in the past three months. The average XLK stock price target of $197.70 implies 13.8% upside potential.
Investor Takeaway
These are both top tech ETFs. XLK has slightly outperformed QQQ over the past 10 years and also offers investors a lower expense ratio. Additionally, it offers an exclusive focus on technology stocks. However, I also like QQQ’s more all-encompassing group of technology holdings, which gives investors exposure to leading tech stocks like Meta Platforms, Amazon, and Alphabet, which aren’t found in XLK.
Both approaches have been fruitful over the years, and I find it hard to go wrong with either of these ETFs, and they both continue to look attractive over the long term.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As you can see, QQQ gives investors exposure to the market’s top mega-cap tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA). Both ETFs have been top performers and have given their investors tremendous gains over the years, but XLK has outpaced QQQ over each of these time frames. However, I also like QQQ’s more all-encompassing group of technology holdings, which gives investors exposure to leading tech stocks like Meta Platforms, Amazon, and Alphabet, which aren’t found in XLK.
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As you can see, QQQ gives investors exposure to the market’s top mega-cap tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA). Turning to Wall Street, QQQ earns a Moderate Buy consensus rating based on 84 Buys, 18 Holds, and no Sell ratings assigned in the past three months. Turning to Wall Street, XLK earns a Moderate Buy consensus rating based on 53 Buys, 14 Holds, and no Sell ratings assigned in the past three months.
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As you can see, QQQ gives investors exposure to the market’s top mega-cap tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA). The Invesco QQQ Trust (NASDAQ:QQQ) and the Technology Select Sector SPDR Fund (NYSEARCA:XLK) are two of the biggest and best-known technology ETFs out there. Seven of QQQ’s top 10 holdings feature Smart Scores of 8 or above, while eight of XLK’s top 10 holdings score 8 or better.
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As you can see, QQQ gives investors exposure to the market’s top mega-cap tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA). Nevertheless, QQQ and XLK both have ETF Smart Scores of 8 out of 10. XLK has slightly outperformed QQQ over the past 10 years and also offers investors a lower expense ratio.
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13828.0
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2023-09-11 00:00:00 UTC
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5 Undervalued Dow Stocks to Buy After the August Selloff
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AAPL
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https://www.nasdaq.com/articles/5-undervalued-dow-stocks-to-buy-after-the-august-selloff
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nan
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nan
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The Dow Jones Industrial Average is a price-weighted index of 30 significant stocks traded on mostly the New York Stock Exchange (NYSE) and, in a few cases, the NASDAQ. The Dow 30 frequently serves as a barometer of investor sentiment. These are blue-chip stocks; when these components move sharply in one direction or another, they can move markets.
For example, Apple, Inc. (NASDAQ: AAPL) is a Dow component. It's also one of the most widely held stocks among retail and institutional investors. When Apple lost $200 billion of market capitalization the week of September 4, 2023, it dragged down the entire index and weighed heavily on the broader market.
But the opposite is also true; when these stocks rally, a rising tide can lift all boats. And several Dow stocks look like solid buys after the market sell-off in August.
An Undervalued Winner in the Energy Sector
Investors were elated that the rate of inflation appeared to continue to soften in August. But that's likely to change when the CPI and PPI come out the week of September 11, 2023. That's when the first effects of rising oil prices will be felt. But it won't be the last. Crude prices are now over $85 a barrel, and it's not hard to see oil going over $90 or even $100 a share by early 2024.
That means if you're not in oil stocks, now is the time. And Chevron Corporation (NYSE: CVX) still looks undervalued relative to the sector. CVX stock is trading at $168.74 as of this writing. That's up about 5.7% in the last month. And as the stock price has gone up, so has the company's valuation. But it still trades at around 12x forward earnings, pays a safe, growing dividend, and has started investing in the renewable energy sector.
An Attractive Combination of Health Insurance and AI
Most investors will benefit from some exposure to healthcare stocks in their portfolios. And UnitedHealth Group Incorporated (NYSE: UNH) is not only one of the largest insurers but also one of the best-performing stocks in the sector.
The company's primary business is health insurance, where it generates most of its revenue. However, investing in UNH stock also gives you some AI exposure. The company's Optum division uses AI to help deliver better outcomes for patients and providers.
Trading at over $470 per share, UNH stock is not inexpensive. But that shouldn't scare retail investors away. Instead, they should look at the stock's value, reflected in 19x forward earnings.
This Company Will Continue to Be an Infrastructure Winner
Caterpillar, Inc. (NYSE: CAT) has been a big winner as infrastructure money from the Inflation Reduction Act begins to flow into the economy. With the stock up over 52% in the last month, some wonder if a sell-off is in order. The Caterpillar analyst ratings on MarketBeat give the stock a consensus Hold rating with a price target that shows a 5% decline in CAT stock.
However, the company is heading into the two quarters which have historically produced the strongest revenue and earnings. And the country is heading into an election year. That leads me to believe that politicians from sea to shining sea will want to ensure infrastructure dollars continue flowing.
This Bank is Looking to Play "Let's Make a Deal?"
Like most companies in the financial sector, 2023 is a year investors in the Goldman Sachs Group, Inc. (NYSE: GS) would like to forget. GS stock is down 5.5% year-to-date and over 6% in the last month.
Some of the decline is due to a lack of M&A and IPO activity in 2022. That's expected to change in 2023 and 2024, and Goldman Sachs will likely benefit from that increased activity.
GS stock trades at an attractive valuation of just 12x forward earnings. The Goldman Sachs analyst ratings on MarketBeat give GS stock a Moderate Buy rating with a 22% upside in the stock propelled by a forecast for 33% earnings growth in the next year.
This Retailer is Bucking the Inventory Trend
Home Depot (NYSE: HD) is one part of the duopoly in home improvement stocks with Lowe's Companies, Inc. NYSE: LOW). But so far, the two sides are heading in markedly different directions. And Home Depot has been on the bearish side of that trade.
HD stock is up 4% in 2023, which isn't terrible. But it pales in comparison to LOW stock, which is up 16% for the year. But that means some investors may view Home Depot as an undervalued addition.
One metric supporting that idea is how the company manages its inventory. Specifically, in its last quarter, the company reported an 11% decline in inventory while keeping its gross margin intact. That bodes well for the company's revenue and earnings in the second half of the year and could result in a comeback of sorts for HD stock.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, Apple, Inc. (NASDAQ: AAPL) is a Dow component. An Undervalued Winner in the Energy Sector Investors were elated that the rate of inflation appeared to continue to soften in August. But it still trades at around 12x forward earnings, pays a safe, growing dividend, and has started investing in the renewable energy sector.
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For example, Apple, Inc. (NASDAQ: AAPL) is a Dow component. Like most companies in the financial sector, 2023 is a year investors in the Goldman Sachs Group, Inc. (NYSE: GS) would like to forget. The Goldman Sachs analyst ratings on MarketBeat give GS stock a Moderate Buy rating with a 22% upside in the stock propelled by a forecast for 33% earnings growth in the next year.
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For example, Apple, Inc. (NASDAQ: AAPL) is a Dow component. The Dow Jones Industrial Average is a price-weighted index of 30 significant stocks traded on mostly the New York Stock Exchange (NYSE) and, in a few cases, the NASDAQ. The Caterpillar analyst ratings on MarketBeat give the stock a consensus Hold rating with a price target that shows a 5% decline in CAT stock.
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For example, Apple, Inc. (NASDAQ: AAPL) is a Dow component. And several Dow stocks look like solid buys after the market sell-off in August. An Undervalued Winner in the Energy Sector Investors were elated that the rate of inflation appeared to continue to soften in August.
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13829.0
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2023-09-11 00:00:00 UTC
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Apple Has a $74 Billion Problem
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AAPL
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https://www.nasdaq.com/articles/apple-has-a-%2474-billion-problem
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nan
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nan
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The Wall Street Journal reported last week that the Chinese government has ordered officials at central government agencies to stop using Apple's (NASDAQ: AAPL) iPhones for work and to stop bringing the devices into offices. While the direct impact on Apple's sales will likely be minimal, the effects of this ban could reverberate and put a big chunk of Apple's China-derived revenue in jeopardy.
Tensions flare
The U.S. has imposed an array of sanctions on China, partly in an effort to restrict access to the most advanced semiconductor technology. Artificial intelligence is a particular area of focus. NVIDIA, the leader in the AI accelerator market, faces limits on what chips it can sell within China.
China has taken some steps that appear to be retaliatory. In May, China banned critical information infrastructure operators from using memory chips made by Micron (NASDAQ: MU) because of cybersecurity concerns. The move to restrict iPhone usage in central government facilities appears to be along the same lines.
The restrictions on Micron's products are narrow, just like the restrictions on Apple's iPhones. But the risk in both cases is that these narrow bans end up being treated as more expansive bans. China has been making a serious effort to reduce its reliance on foreign technology. While it's unlikely to fully ban iPhone sales, it can use this narrow ban to nudge consumers and businesses toward domestic alternatives.
Micron initially forecasted a low-single-digit to high-single-digit percentage impact on its total revenue from the China ban. China accounts for roughly one-quarter of Micron's total revenue, so the best-case scenario Micron laid out was for only a minority of its China revenue to be at risk.
However, the company changed its tune about a month later. In June, Micron disclosed that several Micron customers in China, including mobile OEMs, had been contacted regarding future use of Micron products. The company updated its outlook, saying that about half of its China revenue could be at risk. That works out to a low double-digit percentage of overall revenue.
This is the problem that Apple now faces. If only the Chinese government employees affected by the ban switched away from Apple's iPhones, the impact on Apple's revenue would be minimal. The risk is that others not affected by the ban end up moving away from Apple products as well, either because of pressure or simply reading the tea leaves.
Apple generated $74 billion of revenue from China in fiscal 2022, roughly 19% of the company's total revenue. While it's impossible to predict how much of that revenue is at risk, if this plays out like the ban on Micron products, tens of billions of dollars in annual sales could be in play.
Not great timing
This drama comes at a time when Apple is already struggling to grow. Revenue slumped in Apple's latest quarter along with operating income as sales of iPhones, Macs, and iPads declined. Global smartphone shipments are trending lower this year as consumers hold onto their devices for longer. As the smartphone market matures and new models deliver only incremental improvements, it's hard to view the iPhone as a growth business for Apple.
The company is betting that it can reinvigorate growth with its upcoming VR/AR headset. The Vision Pro is an impressive piece of technology, but it looks like a solution in search of a problem rather than a must-have gadget. And with the headset priced at an eye-watering $3,499, demand will likely be muted.
Apple's stock may face a greater risk from China's restrictions than the company. Apple stock trades for around 30 times earnings, which is historically high for the tech giant. That's not the kind of valuation that sticks around for a no-growth company. If Apple's revenue meaningfully declines as sales to China drop, you can expect investors to rethink the premium being attached to its shares.
The best-case scenario for Apple is for this ban to remain narrow and not impact sales in China beyond those directly affected. The worst-case scenario involves tens of billions of dollars in annual revenue vanishing. Apple stock looks expensive either way.
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Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Wall Street Journal reported last week that the Chinese government has ordered officials at central government agencies to stop using Apple's (NASDAQ: AAPL) iPhones for work and to stop bringing the devices into offices. In May, China banned critical information infrastructure operators from using memory chips made by Micron (NASDAQ: MU) because of cybersecurity concerns. As the smartphone market matures and new models deliver only incremental improvements, it's hard to view the iPhone as a growth business for Apple.
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The Wall Street Journal reported last week that the Chinese government has ordered officials at central government agencies to stop using Apple's (NASDAQ: AAPL) iPhones for work and to stop bringing the devices into offices. If only the Chinese government employees affected by the ban switched away from Apple's iPhones, the impact on Apple's revenue would be minimal. While it's impossible to predict how much of that revenue is at risk, if this plays out like the ban on Micron products, tens of billions of dollars in annual sales could be in play.
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The Wall Street Journal reported last week that the Chinese government has ordered officials at central government agencies to stop using Apple's (NASDAQ: AAPL) iPhones for work and to stop bringing the devices into offices. China accounts for roughly one-quarter of Micron's total revenue, so the best-case scenario Micron laid out was for only a minority of its China revenue to be at risk. If only the Chinese government employees affected by the ban switched away from Apple's iPhones, the impact on Apple's revenue would be minimal.
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The Wall Street Journal reported last week that the Chinese government has ordered officials at central government agencies to stop using Apple's (NASDAQ: AAPL) iPhones for work and to stop bringing the devices into offices. The restrictions on Micron's products are narrow, just like the restrictions on Apple's iPhones. Micron initially forecasted a low-single-digit to high-single-digit percentage impact on its total revenue from the China ban.
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13830.0
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2023-09-10 00:00:00 UTC
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Is Apple a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-apple-a-buy-now
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nan
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nan
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By virtually every measure, Apple (NASDAQ: AAPL) has been a huge winner for stockholders. In the past five- and 10-year periods, the shares have climbed 217% and 895%, respectively, trouncing the Nasdaq Composite. Investors would have loved to have the tech giant in their portfolios.
What's more, the stock has the approval of famed investor Warren Buffett, whose conglomerate Berkshire Hathaway owns a 5.9% stake in the FAANG stock. He's been a shareholder for over seven years now and has made a killing on the stock
But with a market capitalization of just under $2.8 trillion today, is it smart to buy Apple stock now?
Such a dominant enterprise
It's difficult to understate Apple's dominance. The business makes the most popular hardware products out there, including the revolutionary iPhone, iPad, Watch, MacBook, and AirPods. Currently, more than 2 billion active Apple devices are scattered across the globe, a sign of the company's ubiquity.
Hardware is still Apple's main revenue contributor by far, producing sales of $61 billion in the fiscal 2023 third quarter (ended July 1). And the leadership team remains focused on innovation. The latest upgrade to the iPhone is set to be introduced this month, which will surely draw strong consumer demand.
Consumer electronics companies typically aren't very special on their own. But what has made Apple truly unique is its ability to develop internal software that pairs seamlessly with its various hardware products. This so-called ecosystem is key to understanding why Apple has such tremendous customer loyalty and stickiness.
The services segment comprises software offerings like the App Store, iCloud, Apple Music, Apple TV+, and Apple Pay. This division currently represents about a fourth of overall company sales but has been posting faster growth than hardware. The fact that services also carry a much higher gross margin can be a boon to Apple's long-term profitability potential.
Creating hugely successful hardware and software that exhibits durable demand and pricing power has resulted in a ridiculously pristine balance sheet. Apple generates insane amounts of free cash flow each quarter and currently has a net cash position of $57 billion.
That remarkable financial situation gives Apple tons of optionality to continue investing in game-changing technologies. Apple is reportedly working on an artificial intelligence (AI) chatbot. The business has already announced the Vision Pro, an AR/VR (augmented reality/virtual reality) headset. And there are even rumors that the business is designing an autonomous vehicle. With a fantastic track record of success, it's not easy to bet against Apple.
Hard to see market-beating returns
There are many things to like about this company, but the current valuation isn't one of those factors. Because the shares have performed so well in recent years and are even up 36% in 2023, they are not cheap by any stretch of the imagination. The stock currently trades at a trailing price-to-earnings (P/E) ratio of 29.7. That's much more expensive than the trailing 10-year average P/E multiple of 20.2.
The steep valuation is even more discouraging when you consider Apple's growth prospects. In each of the past three fiscal quarters, the business registered a year-over-year revenue decline. With such a massive sales base and widespread product penetration, the law of large numbers is kicking in, so it's not too surprising to see the gains slow. Wall Street analysts are forecasting just 6% annualized revenue growth between fiscal 2022 and fiscal 2027, a stark contrast to the 11.5% pace posted in the previous five fiscal years.
I don't think anyone in their right mind would doubt that Apple is one of the most successful businesses ever. But based on its current valuation, coupled with limited growth prospects, buying the stock today seems like a poor use of capital.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 28, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By virtually every measure, Apple (NASDAQ: AAPL) has been a huge winner for stockholders. Hardware is still Apple's main revenue contributor by far, producing sales of $61 billion in the fiscal 2023 third quarter (ended July 1). Creating hugely successful hardware and software that exhibits durable demand and pricing power has resulted in a ridiculously pristine balance sheet.
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By virtually every measure, Apple (NASDAQ: AAPL) has been a huge winner for stockholders. But based on its current valuation, coupled with limited growth prospects, buying the stock today seems like a poor use of capital. See the 10 stocks *Stock Advisor returns as of August 28, 2023 Neil Patel and his clients have no position in any of the stocks mentioned.
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By virtually every measure, Apple (NASDAQ: AAPL) has been a huge winner for stockholders. He's been a shareholder for over seven years now and has made a killing on the stock But with a market capitalization of just under $2.8 trillion today, is it smart to buy Apple stock now? The services segment comprises software offerings like the App Store, iCloud, Apple Music, Apple TV+, and Apple Pay.
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By virtually every measure, Apple (NASDAQ: AAPL) has been a huge winner for stockholders. Hardware is still Apple's main revenue contributor by far, producing sales of $61 billion in the fiscal 2023 third quarter (ended July 1). 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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13831.0
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2023-09-10 00:00:00 UTC
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Nvidia's Failed Attempt to Acquire This Semiconductor Powerhouse Could Lead to the Biggest IPO of 2023
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AAPL
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https://www.nasdaq.com/articles/nvidias-failed-attempt-to-acquire-this-semiconductor-powerhouse-could-lead-to-the-biggest
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nan
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nan
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In late 2020, Nvidia (NASDAQ: NVDA) stunned the tech world by launching a $40 billion bid to buy CPU specialist Arm Holdings from Softbank Group. The acquisition would have created the "world's premier computing company for the age of artificial intelligence," according to Nvidia. Regulators ultimately quashed the deal, and the companies terminated their efforts in early 2022.
That wasn't to be the end of the story, however, and the next chapter in this tale is about to commence. Arm Holdings recently filed an F-1 with the Securities and Exchange Commission (SEC), the first step in its bid for an initial public offering (IPO).
In an amended F-1 filing, which dropped on Sept. 5, Arm Holdings provided additional details to investors that suggest its public debut could be the biggest IPO of 2023.
Image source: Getty Images.
The numbers tell a tale
Like many companies in the technology sector, Arm has suffered from the macroeconomic headwinds that prevailed over the past year. For the fiscal year ended March 31, Arm generated revenue of $2.7 billion, which declined 1% year over year, resulting in net income of $524 million, down 5%.
While that was a respectable performance given the difficult environment, it pales in comparison to its prior-year performance, when revenue grew 33% and net income jumped 42%.
Arm's struggle to return to growth continues. For the quarter ended June 30, the company reported revenue of $675 million, down 2% year over year. Profits took an even bigger hit, as net income of $105 million slumped 53%. This illustrates that Arm has yet to overcome the broader economic headwinds that have buffeted many in the technology industry. Perhaps more importantly, the company has yet to fully tap into the increasing demand for AI processors.
Can Arm be the next Nvidia?
There was no doubt that Arm's return to the public markets would be a grand affair. Softbank took the chipmaker private in late 2016 for $32 billion. Now, the company is looking to cash in on its investment.
Arm revealed it's looking to issue 95.5 million American depositary shares, priced in a range of $47 to $51, though that could change based on investor demand. With just over 1 billion shares outstanding, this would value Arm Holdings between $48 billion and $52 billion, depending on the final issue price. In light of its most recent results, these are lofty ambitions, indeed.
If it achieves the valuation it's seeking, Arm won't be valued as richly as Nvidia, but it could still fetch a hefty premium. The company hopes to be valued at between 92 and 99 times its trailing-12-month earnings. For context, Nvidia stock is currently selling for 114 times earnings, though this is an apples-to-oranges comparison.
For its fiscal 2024 second quarter (ended July 30), Nvidia delivered revenue of $13.5 billion, up 101% year over year (and 88% sequentially), resulting in net income of $6.2 billion, up 843%.
So, while Nvidia's results suggest it deserves a lofty premium, Arm's recent performance doesn't show nearly as much promise.
Riding the AI train?
It's clear that Arm hopes to ride the wave of excitement surrounding artificial intelligence (AI), as the company mentioned AI 44 times in its regulatory filing. "Arm CPUs already run AI and [machine learning] workloads in billions of devices, including smartphones, cameras, digital TVs, cars and cloud data centers," it said.
However, for all the references, its financial results suggest that its CPUs aren't as central to the processing of AI as Nvidia's graphics processing units (GPUs) and, therefore, may not have as much to gain. It's important to note that Nvidia and others integrate Arm's components and blueprints into their processors, which could generate additional growth -- though it hasn't happened yet.
To be clear, Arm's processors are pervasive, found in 99% of the world's smartphones and a host of other devices, but that doesn't necessarily translate into a clear benefit for the company from AI. Arm's chips are extremely power efficient, so the company's angle is to convince other chipmakers to integrate its technology into their own rather than reinventing the wheel.
As a result, some of the world's most notable tech companies -- and Arm customers -- are expressing interest in the company's public debut. The filing noted that Advanced Micro Devices, Apple, Alphabet's Google, Intel, and Nvidia -- among others -- plan to purchase as much as $735 million in Arm shares, though they're not committed to following through on that interest.
While Arm stock may be in high demand when it goes public, individual investors should exercise caution. Its IPO could well end up being the biggest IPO of the year, but the price seems a bit steep for a company with tepid results.
10 stocks we like better than Nvidia
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of September 5, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Danny Vena has positions in Alphabet, Apple, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In late 2020, Nvidia (NASDAQ: NVDA) stunned the tech world by launching a $40 billion bid to buy CPU specialist Arm Holdings from Softbank Group. "Arm CPUs already run AI and [machine learning] workloads in billions of devices, including smartphones, cameras, digital TVs, cars and cloud data centers," it said. The filing noted that Advanced Micro Devices, Apple, Alphabet's Google, Intel, and Nvidia -- among others -- plan to purchase as much as $735 million in Arm shares, though they're not committed to following through on that interest.
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For the fiscal year ended March 31, Arm generated revenue of $2.7 billion, which declined 1% year over year, resulting in net income of $524 million, down 5%. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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For the fiscal year ended March 31, Arm generated revenue of $2.7 billion, which declined 1% year over year, resulting in net income of $524 million, down 5%. For its fiscal 2024 second quarter (ended July 30), Nvidia delivered revenue of $13.5 billion, up 101% year over year (and 88% sequentially), resulting in net income of $6.2 billion, up 843%. As a result, some of the world's most notable tech companies -- and Arm customers -- are expressing interest in the company's public debut.
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The numbers tell a tale Like many companies in the technology sector, Arm has suffered from the macroeconomic headwinds that prevailed over the past year. Can Arm be the next Nvidia? So, while Nvidia's results suggest it deserves a lofty premium, Arm's recent performance doesn't show nearly as much promise.
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13832.0
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2023-09-10 00:00:00 UTC
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Wall St Week Ahead-Investor hopes for US soft landing ride on inflation data
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-investor-hopes-for-us-soft-landing-ride-on-inflation-data-0
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By David Randall
NEW YORK, Sept 8 (Reuters) - U.S. stock investors are turning their focus to next week’s inflation data, which could determine the near-term path of an equity rally that has wobbled in recent weeks.
Signs the U.S. economy is on track for a so-called soft landing, where the Federal Reserve is able to bring down inflation without badly damaging growth, have helped power the S&P 500’s .SPX 16% year-to-date gain.
Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year.
Consumer price data next week may need to strike a similar balance, investors said. Too high a number could fan fears of the Fed leaving interest rates higher for longer or hiking them more in coming months. That would give investors less reason to hold onto stocks after a tech-led drop in which the S&P 500 lost about 5% from summer highs.
"This inflation demon is far from being destroyed," said Michael Purves, head of Tallbacken Capital Advisors, who expects signs of higher inflation will weigh on the multiples of megacap growth names that have powered the rally. "If we're hitting a structural shift with higher nominal GDP growth, that will come with some volatility and unintended consequences."
Investors trying to assess future Fed policy will watch other data in the coming week too, including a reading of the producer price index and retail sales.
The U.S. central bank is widely expected to hold benchmark rates steady at its Sept. 20 meeting. Markets are also pricing in a nearly 44% chance of a rate hike at the Fed’s Nov. meeting, up from 28% a month ago.
"If we get a high inflation print we will see those expectations pick right up" for September and November, said Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research.
OPTIMISTIC, BUT CAUTIOUS
Strategists and investors currently have largely held faith in the market despite stocks’ recent wobble. Some, though, are growing more cautious.
Reasons for optimism include the relative outperformance of the U.S. economy compared to Europe and China, and signs the so-called profit recession among S&P 500 companies may be over.
Still, worries over an economic slowdown in China and concerns that U.S. corporate margins will shrink have led some market participants to believe squeezing more gains out of stocks will grow more difficult.
The S&P 500 Information Technology sector lost more than 2% this week following news that Beijing had ordered central government employees to stop using iPhones for work. Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei.
"We think we are still in a bull market that will hit new highs before the end of the year, but it will be a choppy road," said Ed Clissold, Chief U.S. Strategist at Ned Davis Research.
The S&P 500 is down about 5% from its July highs, which has made stock valuations broadly more attractive given the low possibility of an imminent recession, said Jonathan Golub, senior equity strategist at Credit Suisse Securities.
Forward price to earnings multiples for 10 out of the 11 sector groups of the S&P 500 fell in August, he noted, though the P/E for the index as a whole remains near 20, compared with 17 at the end of 2022.
Still, much of the bull case for stocks hinges on softer inflation eventually pushing the Fed to lower interest rates.
"If we saw a further material rise in interest rates, the equity market would not take that well," said David Lefkowitz, head of U.S. equities at UBS Global Wealth Management.
(Reporting by David Randall; Editing by Ira Iosebashvili and David Gregorio)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. Signs the U.S. economy is on track for a so-called soft landing, where the Federal Reserve is able to bring down inflation without badly damaging growth, have helped power the S&P 500’s .SPX 16% year-to-date gain. "If we get a high inflation print we will see those expectations pick right up" for September and November, said Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research.
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Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year. Too high a number could fan fears of the Fed leaving interest rates higher for longer or hiking them more in coming months.
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Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. By David Randall NEW YORK, Sept 8 (Reuters) - U.S. stock investors are turning their focus to next week’s inflation data, which could determine the near-term path of an equity rally that has wobbled in recent weeks. Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year.
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Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. By David Randall NEW YORK, Sept 8 (Reuters) - U.S. stock investors are turning their focus to next week’s inflation data, which could determine the near-term path of an equity rally that has wobbled in recent weeks. Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year.
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13833.0
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2023-09-10 00:00:00 UTC
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Biden meets China leader Li, says economic woes make Taiwan invasion less likely
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AAPL
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https://www.nasdaq.com/articles/biden-meets-china-leader-li-says-economic-woes-make-taiwan-invasion-less-likely
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nan
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nan
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By Nandita Bose and Trevor Hunnicutt
HANOI, Sept 10 (Reuters) - U.S. President Joe Biden said on Sunday he held his highest-level talks with Chinese leadership in months, adding that Beijing's economic wobbles would not lead it to invade Taiwan.
Biden said he met with Chinese President Xi Jinping's No.2, Chinese Premier Li Qiang, at the annual G20 summit in New Delhi. The talks were the highest level meeting between the two powers in nearly 10 months since Biden and Xi spoke at last year's G20 in Indonesia.
Chinese Premier Li Qiang, who took over the country's No.2 post in March, attended the gathering of world leaders in place of Xi. The two leaders were not expected to hold talks at the G20 but unscripted encounters at summits are common.
"My team, my staff still meets with President Xi's people and his cabinet," Biden told reporters. "I met with his No.2 person in India today."
He added: "We talked about stability," and the Southern Hemisphere. "It wasn't confrontational at all."
The two super powers have been trying to thaw frosty relations this year after a spat over a suspected Chinese spy balloon that flew over U.S. territory, while fears of an economic slowdown have gripped Beijing.
Speaking at a press conference in Vietnam, Biden touted the U.S. economy as the "strongest" globally. He told reporters that China's growth was slowing due to a weak global economy as well as Chinese policies, but did not specify which policies.
Biden called China's economic situation a "crisis," citing issues in the real estate sector and high youth unemployment. "One of the major economic tenets of his plan isn't working at all right now," Biden said of Xi, without elaborating. "I'm not happy for that, but it's not working."
Biden added: "He has his hands full right now."
The 80-year-old Democrat is headed into a 2024 presidential re-election campaign where his own handling of the economy and inflation has become a central concern for voters.
The U.S. economy grew at a 2.1% annualised rate last quarter. Central bankers have sharply raised interest rates to bring inflation back down to target levels.
August trade data showed China's exports and imports both narrowing their declines, joining other indicators showing a possible stabilisation in the economic downturn, as policymakers seek to spur demand and fend off deflation.
Li has said China should achieve its 2023 growth target of around 5%, but some analysts think a worsening property slump, weak consumer spending and tumbling credit growth could mean lower growth.
OPEN DIALOGUE
Biden has tried to keep communications open with China to lower the temperature in international frictions including over Taiwan, the self-ruled island claimed by China.
"I don't think this is going to cause China to invade Taiwan," Biden said of the country's economic troubles. "As a matter of fact, the opposite, probably doesn't have the same capacity that it had before."
He described the United States as a Pacific power with no intention of withdrawing from the region.
Biden also said recent moves by Chinese officials to curb the use of U.S.-designed Apple AAPL.O iPhones by state employees amounted to trying to "change some of the rules of the game" on trade.
"I am sincere about getting the relationship right," he said.
(Reporting by Nandita Bose in Hanoi and Trevor Hunnicutt in Washington; Additional reporting by Doina Chiacu; Editing by Lisa Shumaker, Heather Timmons and Cynthia Osterman)
((trevor.hunnicutt@tr.com; +1 (332) 219 1571; twitter.com/TrevorNews; Reuters Messaging: trevor.hunnicutt.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Biden also said recent moves by Chinese officials to curb the use of U.S.-designed Apple AAPL.O iPhones by state employees amounted to trying to "change some of the rules of the game" on trade. By Nandita Bose and Trevor Hunnicutt HANOI, Sept 10 (Reuters) - U.S. President Joe Biden said on Sunday he held his highest-level talks with Chinese leadership in months, adding that Beijing's economic wobbles would not lead it to invade Taiwan. The two super powers have been trying to thaw frosty relations this year after a spat over a suspected Chinese spy balloon that flew over U.S. territory, while fears of an economic slowdown have gripped Beijing.
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Biden also said recent moves by Chinese officials to curb the use of U.S.-designed Apple AAPL.O iPhones by state employees amounted to trying to "change some of the rules of the game" on trade. By Nandita Bose and Trevor Hunnicutt HANOI, Sept 10 (Reuters) - U.S. President Joe Biden said on Sunday he held his highest-level talks with Chinese leadership in months, adding that Beijing's economic wobbles would not lead it to invade Taiwan. Biden said he met with Chinese President Xi Jinping's No.2, Chinese Premier Li Qiang, at the annual G20 summit in New Delhi.
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Biden also said recent moves by Chinese officials to curb the use of U.S.-designed Apple AAPL.O iPhones by state employees amounted to trying to "change some of the rules of the game" on trade. By Nandita Bose and Trevor Hunnicutt HANOI, Sept 10 (Reuters) - U.S. President Joe Biden said on Sunday he held his highest-level talks with Chinese leadership in months, adding that Beijing's economic wobbles would not lead it to invade Taiwan. Biden said he met with Chinese President Xi Jinping's No.2, Chinese Premier Li Qiang, at the annual G20 summit in New Delhi.
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Biden also said recent moves by Chinese officials to curb the use of U.S.-designed Apple AAPL.O iPhones by state employees amounted to trying to "change some of the rules of the game" on trade. By Nandita Bose and Trevor Hunnicutt HANOI, Sept 10 (Reuters) - U.S. President Joe Biden said on Sunday he held his highest-level talks with Chinese leadership in months, adding that Beijing's economic wobbles would not lead it to invade Taiwan. He told reporters that China's growth was slowing due to a weak global economy as well as Chinese policies, but did not specify which policies.
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13834.0
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2023-09-10 00:00:00 UTC
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Apple Just Shed More Than $230 Billion In Market Cap. Here's Why It's a Buying Opportunity.
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AAPL
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https://www.nasdaq.com/articles/apple-just-shed-more-than-%24230-billion-in-market-cap.-heres-why-its-a-buying-opportunity.
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nan
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nan
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The past couple of days have been rotten for Apple (NASDAQ: AAPL). The stock was punished after reports indicated the Chinese government ordered some agencies not to use iPhones at work (or even bring them to the office), according to a report that first appeared in The Wall Street Journal.
The suggestion that Apple had fallen out of favor in China, one of its biggest markets, immediately threw cold water on the stock, which had rallied 46% so far this year heading into this week. In the roughly 36 hours since the report was published, Apple stock fell as much as 8%, wiping $230 million from the iPhone maker's market cap.
Some traders are acting as if the sky is falling, but veteran investors will recognize this as a buying opportunity. Here's why.
Image source: Apple.
The devil's in the details
Some investors take a "sell first and ask questions later" approach to investing without ever digging into the details of the event that sparked their decision. That does them a grave disservice but represents a buying opportunity for others.
While the report focused on Apple, it clearly mentioned "iPhones and other foreign-branded devices," so this isn't limited to Apple. In recent months, the Chinese government has embarked on a campaign to reduce its dependence on technology developed in foreign countries while simultaneously increasing its focus on cybersecurity.
It's important to note that these restrictions have existed for a number of years but haven't been strictly enforced. Beijing's recent proclamation merely brought these existing measures back into focus.
It's easy to see how investors might be spooked by the prospect of a partial sales moratorium in China. After all, the country represented roughly 20% of Apple's revenue so far this fiscal year -- with the iPhone accounting for the lion's share of those sales. However, a look at a similar move by China in the past should put those fears to rest.
This isn't an isolated incident
This isn't the first time the country placed restrictions on the use of foreign products. Back in 2021, the Chinese government restricted the use of Tesla (NASDAQ: TSLA) cars for members of its military or by government-owned companies. China cited national security concerns at the time, suggesting that data the vehicles gathered could be leaked or obtained by rival governments.
Despite the moratorium, Tesla continues to be a big seller in China. Earlier this month, information from the China Passenger Car Association revealed that Tesla delivered 84,159 electric vehicles that were built in the country during August, up more than 9% year over year and up 31% sequentially, though Tesla's manufacturing facility in Shanghai was shuttered for part of July for scheduled maintenance. So far this year, Tesla has sold nearly 625,000 vehicles in China, a 56% increase.
The data suggests that just because the Chinese government restricts some employees from using certain products on the job, that doesn't diminish their popularity among everyday consumers.
A compelling opportunity
Apple has pulled back nearly 10% from its recent high, making the stock look much more attractive. It's currently trading for roughly 30 times earnings, and while that's slightly more expensive than the price-to-earnings (P/E) ratio of 25 for the S&P 500, Apple is deserving of a premium.
Over the past five years, even after enduring the worst downturn in more than a decade, Apple stock gained more than 200%, compared to a 54% rise for the S&P 500.
Furthermore, consumer spending has been pinched by persistent high inflation, and many Apple fans have put off upgrading their existing device. That could be about to change, as inflation has been easing in recent months.
Wedbush analyst Dan Ives estimates that roughly 25% of Apple's installed base of 1.2 billion iPhones haven't been upgraded over the past four years. This pent-up demand could drive a "mini-super cycle," when Apple releases the next generation of its iconic device later this month, according to the analyst.
Ives also suggests that China's restriction represents less than 500,000 iPhones, compared with the 45 million he expects will be sold in the country over the coming 12 months. It seems some investors might be making a mountain out of a molehill.
Add to that the company's industry-leading position, robust prospects, and attractive valuation, and it appears that now is the time to buy Apple stock before investors come to their senses.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 5, 2023
Danny Vena has positions in Apple and Tesla. The Motley Fool has positions in and recommends Apple and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The past couple of days have been rotten for Apple (NASDAQ: AAPL). The suggestion that Apple had fallen out of favor in China, one of its biggest markets, immediately threw cold water on the stock, which had rallied 46% so far this year heading into this week. In recent months, the Chinese government has embarked on a campaign to reduce its dependence on technology developed in foreign countries while simultaneously increasing its focus on cybersecurity.
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The past couple of days have been rotten for Apple (NASDAQ: AAPL). Back in 2021, the Chinese government restricted the use of Tesla (NASDAQ: TSLA) cars for members of its military or by government-owned companies. Ives also suggests that China's restriction represents less than 500,000 iPhones, compared with the 45 million he expects will be sold in the country over the coming 12 months.
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The past couple of days have been rotten for Apple (NASDAQ: AAPL). While the report focused on Apple, it clearly mentioned "iPhones and other foreign-branded devices," so this isn't limited to Apple. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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The past couple of days have been rotten for Apple (NASDAQ: AAPL). This isn't an isolated incident This isn't the first time the country placed restrictions on the use of foreign products. So far this year, Tesla has sold nearly 625,000 vehicles in China, a 56% increase.
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13835.0
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2023-09-10 00:00:00 UTC
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Intel Stock Has Soared 44% in 2023. Is It Still a Buy?
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AAPL
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https://www.nasdaq.com/articles/intel-stock-has-soared-44-in-2023.-is-it-still-a-buy
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nan
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nan
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Chip giant Intel (NASDAQ: INTC) has been facing a series of problems that have heavily weighed on the stock over the past few years. First and foremost, the company lost its manufacturing advantage to TSMC. Chronic delays and missteps coupled with steady progress from the Taiwan-based foundry have put Intel in a position that would have been unthinkable 10 years ago.
Intel's manufacturing troubles opened the door for rival Advanced Micro Devices to steal share in both the PC and server chip markets. AMD has been shipping solid products, but a key component of its comeback has been its access to industry-leading manufacturing technology from TSMC.
If that wasn't enough, the PC industry remains in a deep downturn. Following a pandemic-era boom, global PC shipments tumbled 16.5% in 2022 and are on track for another decline this year. The PC supply chain has been drowning in excess inventories, reducing orders for Intel's chips. Things got so bad that Intel reported its largest quarterly loss ever in the first quarter of 2023 as revenue fell off a cliff.
While Intel's financial results remain severely depressed, investors have warmed back up to the stock this year. Shares of Intel have soared about 44% year-to-date, trouncing the S&P 500. There's a lot to like about Intel's long-term story, and the stock still looks like a great deal for long-term investors.
Winning in manufacturing
Intel's future depends on the company getting its manufacturing operations back on track. Under CEO Pat Gelsinger, Intel has embarked on an expensive journey to compete directly with third-party foundries like TSMC while also working to reclaim share in its core PC and server CPU markets. Intel's plan involves launching five process nodes in a four-year span with the goal of leapfrogging TSMC by the end of that roadmap.
So far, so good. Intel is set to launch its Meteor Lake PC chips this year built on its Intel 4 process, the second node in its roadmap. Next year will bring Granite Rapids and Sierra Forest, two families of server CPUs built on the Intel 3 process. By the end of 2024, Intel plans to have the final two nodes, Intel 20A and Intel 18A, ready for production. It's Intel 18A that should outclass TSMC, if all goes according to plan.
Regaining its manufacturing edge is important for two reasons. First, it eliminates the advantage AMD currently holds by using TSMC's advanced manufacturing technology. Second, it allows Intel to win foundry customers who need the best process node available. Smartphone chips like those powering Apple's devices and AI accelerators are all fair game.
Intel has made notable progress, even though Intel 18A won't generate meaningful revenue until 2025 at the earliest. The company has secured MediaTek and Ericsson as customers, and it recently received a large prepayment from an unnamed customer to secure manufacturing capacity and accelerate the buildout of Intel's facilities in Arizona.
Intel is also going after foundry customers who need mature, cost-effective process nodes for simpler chips. The company has partnered with Tower Semiconductor to provide manufacturing capacity and foundry services for that company's 65nm chips, and it's gained support from the major third-party chip design tool providers for its mature Intel 16 process.
None of this will bear fruit for a couple of years, but the long-term opportunity is enormous. The foundry services market is expected to grow to more than $200 billion by 2028.
A buy-and-hold stock
Intel's story will play out over multiple years. The company is so far on track to launch its process nodes on time. In fact, Intel 18A is actually ahead of schedule. The game-changing process node was originally slated for a 2025 arrival.
Although there's still time for something to go wrong, it appears that Intel's manufacturing woes are behind it. The large prepayment for Intel 18A capacity is a sign that at least one large customer has become convinced that Intel will deliver on its promises.
It's impossible to put a value on Intel stock. The company's current earnings are depressed, and the foundry business has the potential to deliver enormous upside over the long run. As it stands today, TSMC has a market capitalization nearly triple that of Intel. As Intel builds up its foundry business, that gap will likely close.
Intel still has a lot of work to do to cross the finish line on its manufacturing roadmap and win over foundry customers. The fact that Intel competes directly with companies that are big spenders on foundry services, including AMD and Nvidia, complicates the picture. But if Intel can make its foundry business work, the stock should deliver great returns for long-term investors.
10 stocks we like better than Intel
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Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, Taiwan Semiconductor Manufacturing, and Tower Semiconductor. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chronic delays and missteps coupled with steady progress from the Taiwan-based foundry have put Intel in a position that would have been unthinkable 10 years ago. Intel's manufacturing troubles opened the door for rival Advanced Micro Devices to steal share in both the PC and server chip markets. Under CEO Pat Gelsinger, Intel has embarked on an expensive journey to compete directly with third-party foundries like TSMC while also working to reclaim share in its core PC and server CPU markets.
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But if Intel can make its foundry business work, the stock should deliver great returns for long-term investors. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, Taiwan Semiconductor Manufacturing, and Tower Semiconductor. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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Intel is set to launch its Meteor Lake PC chips this year built on its Intel 4 process, the second node in its roadmap. By the end of 2024, Intel plans to have the final two nodes, Intel 20A and Intel 18A, ready for production. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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Intel is set to launch its Meteor Lake PC chips this year built on its Intel 4 process, the second node in its roadmap. Second, it allows Intel to win foundry customers who need the best process node available. The company is so far on track to launch its process nodes on time.
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13836.0
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2023-09-10 00:00:00 UTC
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Earnings, CPI and Other Key Things to Watch This Week
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AAPL
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https://www.nasdaq.com/articles/earnings-cpi-and-other-key-things-to-watch-this-week
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nan
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nan
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Apple (AAPL) was one of the largest headlines last week, with China announcing that it planned to cut back usage of the products in government locations. That was followed up with Jim Cramer saying that it was a great company to hold and not trade, so sadly that could be a bellwether for some hard times ahead for Apple.
Additionally, there was some news about the Nvidia (NVDA) earnings and some questions about the legitimacy of the mysterious client that pushed their earnings over the edge. Throw in some news release drama and we ended with the S&P 500 ($SPX) (SPY) down a little over 1% on the week.
This week is fairly quiet news-wise at the beginning of the week, but towards the end, it really picks up. Plus we have some geopolitical news to watch out for and still have earnings. Here are 5 things to watch in the markets this week.
Earnings
Earnings are really winding down now. This upcoming week there are really only a few notable names to keep an eye out on. First up on Monday is Oracle (ORCL). A huge business-to-business name, it could provide some insight into the software spending of other companies over the next months and years. Wednesday before the open Craker Barrel (CBRL) releases its earnings. This could provide some insight into what the thank the upcoming quarters will have in store in terms of restaurant patronage. Finally, on Thursday Adobe (ADBE) releases earnings. With an increasing shift to subscription-based products and the rise of a few different AI-inspired tools, ADBE could be a solid one to watch post-earning.
CPI
CPI is out Wednesday at 8:30 a.m.Eastern time. With all of the issues with energy lately, the forecast for this month-over-month change is +0.6% which is significantly larger than the previous 6 forecasts. It’s possible it's just a high estimate to try and celebrate a lower actual number, it's also possible with higher energy costs we are seeing inflation creep back into prices. If there is a match or beat to the CPI numbers, it's possible we see some sell as rate hikes would not be off the table. If we miss though, we could see a rally on hopes that rates are soon coming down.
PPI
Following up on some additional inflation news on Thursday is the PPI. Where CPI is the number retail sees, PPI is the number that producers charge the stores. These numbers often move in unison as prices increase, and so do costs associated with the good. Similar to CPI, if we match or beat the estimate it's possible the market starts to head south, if we miss though we could see a continued rally.
Core Retail Sales
Rounding out the consumer data due this week is Core Retail sales out Thursday at 8:30. As discussed in the past, this is the total value of sales excluding automobiles, so it can be skewed by higher prices, however, it is forecasted to have dropped significantly from the previous month's number. This could be a solid indicator of whether or not the economy is slowing down.
Energy
On a longer time horizon, energy looks to be coming back into the conversation. Russia and the Saudis have recently made a statement that they plan to extend cuts in production at least through the fall. This is mixed with the current US administration saying that they plan on revoking all the remaining oil and gas leases above the Arctic Circle. Combined it could put a lot more strain on both middle and low-income families as well as on producers and logistics companies who will be forced to raise prices in lockstep with fuel costs.
Best of luck this week and don’t forget to check out my daily options article.
More Stock Market News from Barchart
Stocks Post Modest Gains on Hopes for a Fed Pause
This Biotech Stock Offers Innovative Growth at a Massive Discount
3 Dividend Aristocrats Analysts Expect to Rally
3 Top Value Stocks to Buy in the Tech Sector Right Now
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) was one of the largest headlines last week, with China announcing that it planned to cut back usage of the products in government locations. As discussed in the past, this is the total value of sales excluding automobiles, so it can be skewed by higher prices, however, it is forecasted to have dropped significantly from the previous month's number. Combined it could put a lot more strain on both middle and low-income families as well as on producers and logistics companies who will be forced to raise prices in lockstep with fuel costs.
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Apple (AAPL) was one of the largest headlines last week, with China announcing that it planned to cut back usage of the products in government locations. It’s possible it's just a high estimate to try and celebrate a lower actual number, it's also possible with higher energy costs we are seeing inflation creep back into prices. Core Retail Sales Rounding out the consumer data due this week is Core Retail sales out Thursday at 8:30.
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Apple (AAPL) was one of the largest headlines last week, with China announcing that it planned to cut back usage of the products in government locations. Core Retail Sales Rounding out the consumer data due this week is Core Retail sales out Thursday at 8:30. More Stock Market News from Barchart Stocks Post Modest Gains on Hopes for a Fed Pause This Biotech Stock Offers Innovative Growth at a Massive Discount 3 Dividend Aristocrats Analysts Expect to Rally 3 Top Value Stocks to Buy in the Tech Sector Right Now On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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Apple (AAPL) was one of the largest headlines last week, with China announcing that it planned to cut back usage of the products in government locations. Plus we have some geopolitical news to watch out for and still have earnings. Finally, on Thursday Adobe (ADBE) releases earnings.
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13837.0
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2023-09-10 00:00:00 UTC
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EXCLUSIVE-SoftBank's Arm eyes pricing IPO at top of range or above-sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-softbanks-arm-eyes-pricing-ipo-at-top-of-range-or-above-sources
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nan
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nan
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By Echo Wang and Anirban Sen
NEW YORK, Sept 10 (Reuters) - Arm, the chip designer owned by SoftBank Group Corp 9984.T, is getting close to securing enough investor support to attain the fully diluted valuation of $54.5 billion it was seeking in its initial public offering (IPO) at the top of its indicated range, and is considering asking investors to value it higher, people familiar with the matter said on Sunday.
Following strong demand from investors, Arm will likely be able to price the IPO at the top or above its $47-to-$51-per-share range when its underwriters close their books on Wednesday on the biggest U.S. stock market debut in two years, the sources said.
Arm is discussing the possibility of raising the price range and seeking a valuation of more than $54.5 billion, in light of the IPO's oversubscription, the sources said. Alternatively, Arm is also considering keeping the price range as is and pricing the IPO above it on Wednesday, which would also lead to a valuation higher than $54.5 billion, the sources added.
Arm will not, however, offer more shares, given that SoftBank wants to retain a 90.6% stake in Arm following the approximately $5 billion IPO, as originally planned, the sources said.
A decision on whether to raise the price range will come in the next two days after some key orders from investors come in on Monday, according to one of the sources.
The sources, who spoke on condition of anonymity to discuss confidential deliberations, cautioned that some anticipated investor commitments had not been finalized and the trajectory of the orders could still change.
SoftBank and Arm did not immediately respond to requests for comment.
The valuation that Arm has been seeking thus far represents a climb-down from the $64 billion valuation at which SoftBank last month acquired the 25% stake it did not already own in the company from the $100 billion Vision Fund it manages.
Yet even with this lower valuation, SoftBank would fare better than its $40 billion deal to sell Arm to Nvidia Corp NVDA.O, which it abandoned last year amid opposition from antitrust regulators.
Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple AAPL.O, Nvidia, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS.
Arm launched its IPO marketing efforts last week, seeking to convince investors it has growth ahead of it, beyond the mobile phone market, which it dominates with a 99% share.
Weak mobile demand during a global economic slowdown has caused Arm's revenue to stagnate. Overall sales totaled $2.68 billion in the 12 months to the end of March, compared to $2.7 billion in the prior period.
Arm told potential investors in New York on Thursday that the cloud computing market, of which it has only a 10% share and therefore more room to expand, is expected to grow at an annual rate of 17% through 2025, partly thanks to advances in artificial intelligence. The automotive market, of which it commands 41%, is forecast to expand by 16%, compared with just 6% growth expected for the mobile market.
Arm also told investors its royalty fees, which account for most of its revenue, were accumulating since it started collecting them in the early 1990s. Royalty revenue came in at $1.68 billion at the latest fiscal year, up from $1.56 billion a year before.
An area of scrutiny for investors has been Arm's exposure to China, given geopolitical tensions with the United States that have led to a race to secure chip supplies. Sales in China contributed 24.5% of Arm's $2.68 billion revenue in fiscal 2023.
(Reporting by Echo Wang and Anirban Sen in New York Editing by Greg Roumeliotis and Diane Craft)
((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple AAPL.O, Nvidia, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. Following strong demand from investors, Arm will likely be able to price the IPO at the top or above its $47-to-$51-per-share range when its underwriters close their books on Wednesday on the biggest U.S. stock market debut in two years, the sources said. Arm told potential investors in New York on Thursday that the cloud computing market, of which it has only a 10% share and therefore more room to expand, is expected to grow at an annual rate of 17% through 2025, partly thanks to advances in artificial intelligence.
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Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple AAPL.O, Nvidia, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. By Echo Wang and Anirban Sen NEW YORK, Sept 10 (Reuters) - Arm, the chip designer owned by SoftBank Group Corp 9984.T, is getting close to securing enough investor support to attain the fully diluted valuation of $54.5 billion it was seeking in its initial public offering (IPO) at the top of its indicated range, and is considering asking investors to value it higher, people familiar with the matter said on Sunday. Arm is discussing the possibility of raising the price range and seeking a valuation of more than $54.5 billion, in light of the IPO's oversubscription, the sources said.
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Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple AAPL.O, Nvidia, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. By Echo Wang and Anirban Sen NEW YORK, Sept 10 (Reuters) - Arm, the chip designer owned by SoftBank Group Corp 9984.T, is getting close to securing enough investor support to attain the fully diluted valuation of $54.5 billion it was seeking in its initial public offering (IPO) at the top of its indicated range, and is considering asking investors to value it higher, people familiar with the matter said on Sunday. Following strong demand from investors, Arm will likely be able to price the IPO at the top or above its $47-to-$51-per-share range when its underwriters close their books on Wednesday on the biggest U.S. stock market debut in two years, the sources said.
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Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple AAPL.O, Nvidia, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. Arm is discussing the possibility of raising the price range and seeking a valuation of more than $54.5 billion, in light of the IPO's oversubscription, the sources said. Royalty revenue came in at $1.68 billion at the latest fiscal year, up from $1.56 billion a year before.
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13838.0
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2023-09-10 00:00:00 UTC
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Where Will Apple Stock Be in 3 Years?
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AAPL
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https://www.nasdaq.com/articles/where-will-apple-stock-be-in-3-years-1
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nan
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nan
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As one of the best businesses in the world, Apple (NASDAQ: AAPL) has unsurprisingly been one of the best investments. In the last three years, the stock has climbed by 46%, more than doubling the 22% gain of the Nasdaq Composite index.
Even this year, Apple has trounced the overall market. And its market cap is still below the $3 trillion mark.
But what investors really care about is what the future might look like. Apple shares currently trade at approximately $178. Where will they be in three years? Here are some major potential trends to be mindful of as it relates to this dominant tech enterprise.
Apple's decelerating growth
In the trailing 12 months, Apple generated revenue of $384 billion. That's a ridiculous figure to wrap one's head around. Naturally, a company this large will see its growth slow as opportunities to meaningfully expand start to become limited. In fact, in each of the last three quarters, Apple's sales fell on a year-over-year basis. However, between fiscal 2017 and fiscal 2022 (which ended in September of last year), the business increased its revenues at an annualized clip of 11.5%, so perhaps the recent troubles are due more to macroeconomic factors than to anything specific about the company.
That's an optimistic perspective, to be sure. But investors need to temper their expectations. Wall Street analysts tend to agree that the Apple of the future will see smaller gains, as the company is forecast to increase revenue at a compound annual rate of 3.4% between fiscal 2022 and fiscal 2025.
Adopting a conservative view is rational. Apple is already everywhere, it seems, with more than 2 billion active devices. More growth could come from India, the most populated nation on Earth, where Apple just opened its first store, but the U.S. market is still key to the company's success. Unless it debuts another game-changing product that has truly massive market potential, its growth will surely decelerate.
Returning cash to shareholders
Though Apple has reached a more mature stage of its lifecycle, one thing is certain: This business prints money. In its fiscal 2022, Apple produced $111 billion of free cash flow. And in the first three quarters of its fiscal 2023, it produced $80 billion.
If top-line growth won't be enough to excite investors, Apple's ability to return huge amounts of cash to shareholders is still an attractive quality. Through the first three quarters of fiscal 2023, the business paid $11.3 billion in dividends and bought back $56.5 billion worth of stock.
Berkshire Hathaway, the conglomerate run by Warren Buffett, owns about a 6% stake in the iPhone maker. This translates to sizable passive income for the Oracle of Omaha's firm, likely a key reason he's holding onto the stock. Moreover, as Apple continues shrinking its outstanding share count, Berkshire's equity ownership, as well as every other shareholder's, will climb.
Valuation compression
Thanks to Apple's tremendous outperformance in recent years, and especially in 2023, the stock isn't cheap. It trades at a trailing price-to-earnings (P/E) ratio of 29.8. In the past decade, its shares have, on average, sold at a P/E multiple of 20.2, so they are certainly more expensive than usual now.
It's hard to pinpoint why Apple's valuation has risen so much. Maybe investors view the business as a bit of a safe haven in a world that's seemingly always full of uncertainty. I'm not sure.
But I think there's a good chance that Apple's P/E ratio three years from now will be lower than it is today. The valuation could revert back toward the mean. And as the market realizes that Apple's growth prospects are diminishing, the stock could get rerated downward.
It's difficult to bet against Apple, but valuation definitely matters. And if we look out over the next three years, a strong case can be made that the stock won't outperform, and might actually underperform the broader market.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 28, 2023
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As one of the best businesses in the world, Apple (NASDAQ: AAPL) has unsurprisingly been one of the best investments. More growth could come from India, the most populated nation on Earth, where Apple just opened its first store, but the U.S. market is still key to the company's success. Returning cash to shareholders Though Apple has reached a more mature stage of its lifecycle, one thing is certain: This business prints money.
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As one of the best businesses in the world, Apple (NASDAQ: AAPL) has unsurprisingly been one of the best investments. Apple's decelerating growth In the trailing 12 months, Apple generated revenue of $384 billion. And if we look out over the next three years, a strong case can be made that the stock won't outperform, and might actually underperform the broader market.
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As one of the best businesses in the world, Apple (NASDAQ: AAPL) has unsurprisingly been one of the best investments. Apple's decelerating growth In the trailing 12 months, Apple generated revenue of $384 billion. Valuation compression Thanks to Apple's tremendous outperformance in recent years, and especially in 2023, the stock isn't cheap.
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As one of the best businesses in the world, Apple (NASDAQ: AAPL) has unsurprisingly been one of the best investments. Even this year, Apple has trounced the overall market. And in the first three quarters of its fiscal 2023, it produced $80 billion.
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13839.0
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2023-09-10 00:00:00 UTC
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Meta is developing a new, more powerful AI system - WSJ
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AAPL
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https://www.nasdaq.com/articles/meta-is-developing-a-new-more-powerful-ai-system-wsj
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nan
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nan
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Adds details from WSJ report in paragraph 2, 4-5, background in paragraph 3, 7-8
Sept 10 (Reuters) - Meta Platforms META.O is working on a new artificial-intelligence system intended to be as powerful as the most advanced model offered by OpenAI, the Wall Street Journal reported on Sunday, citing people familiar with the matter.
The Facebook parent is aiming for its new AI model to be ready next year, the Journal said, adding it will be several times more powerful than its commercial version dubbed Llama 2.
Llama 2 is Meta's open source AI language model launched in July, and distributed by Microsoft's MSFT.O cloud Azure services to compete with OpenAI's ChatGPT and Google's GOOGL.O Bard.
The planned system, details of which could still change, would help other companies build services that produce sophisticated text, analysis and other output, the newspaper reported.
Meta expects to start training the new AI system, known as a large language model, in early 2024, the report added.
Meta did not immediately respond to a Reuters request for comment.
Businesses and enterprises have flocked to the nascent generative AI market for newer capabilities and refining business processes since the launch of OpenAI's ChatGPT late last year.
Bloomberg News reported in July that Apple AAPL.O is working on AI offerings similar to OpenAI's ChatGPT and Google's Bard, adding that it has built its own framework, known as 'Ajax', to create large language models and is also testing a chatbot that some engineers call 'Apple GPT'.
(Reporting by Nilutpal Timsina in Bengaluru; Editing by Leslie Adler and Diane Craft)
((Nilutpal.Timsina@thomsonreuters.com; +91 86382 04706;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bloomberg News reported in July that Apple AAPL.O is working on AI offerings similar to OpenAI's ChatGPT and Google's Bard, adding that it has built its own framework, known as 'Ajax', to create large language models and is also testing a chatbot that some engineers call 'Apple GPT'. The Facebook parent is aiming for its new AI model to be ready next year, the Journal said, adding it will be several times more powerful than its commercial version dubbed Llama 2. Llama 2 is Meta's open source AI language model launched in July, and distributed by Microsoft's MSFT.O cloud Azure services to compete with OpenAI's ChatGPT and Google's GOOGL.O Bard.
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Bloomberg News reported in July that Apple AAPL.O is working on AI offerings similar to OpenAI's ChatGPT and Google's Bard, adding that it has built its own framework, known as 'Ajax', to create large language models and is also testing a chatbot that some engineers call 'Apple GPT'. Llama 2 is Meta's open source AI language model launched in July, and distributed by Microsoft's MSFT.O cloud Azure services to compete with OpenAI's ChatGPT and Google's GOOGL.O Bard. Meta expects to start training the new AI system, known as a large language model, in early 2024, the report added.
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Bloomberg News reported in July that Apple AAPL.O is working on AI offerings similar to OpenAI's ChatGPT and Google's Bard, adding that it has built its own framework, known as 'Ajax', to create large language models and is also testing a chatbot that some engineers call 'Apple GPT'. Adds details from WSJ report in paragraph 2, 4-5, background in paragraph 3, 7-8 Sept 10 (Reuters) - Meta Platforms META.O is working on a new artificial-intelligence system intended to be as powerful as the most advanced model offered by OpenAI, the Wall Street Journal reported on Sunday, citing people familiar with the matter. Llama 2 is Meta's open source AI language model launched in July, and distributed by Microsoft's MSFT.O cloud Azure services to compete with OpenAI's ChatGPT and Google's GOOGL.O Bard.
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Bloomberg News reported in July that Apple AAPL.O is working on AI offerings similar to OpenAI's ChatGPT and Google's Bard, adding that it has built its own framework, known as 'Ajax', to create large language models and is also testing a chatbot that some engineers call 'Apple GPT'. Adds details from WSJ report in paragraph 2, 4-5, background in paragraph 3, 7-8 Sept 10 (Reuters) - Meta Platforms META.O is working on a new artificial-intelligence system intended to be as powerful as the most advanced model offered by OpenAI, the Wall Street Journal reported on Sunday, citing people familiar with the matter. The Facebook parent is aiming for its new AI model to be ready next year, the Journal said, adding it will be several times more powerful than its commercial version dubbed Llama 2.
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13840.0
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2023-09-09 00:00:00 UTC
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Is Apple Stock Overvalued?
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-overvalued
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nan
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nan
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There's no question Apple (NASDAQ: AAPL) is a dominant company in the world today. But that doesn't necessarily make it a great stock to buy. In this video, Travis Hoium goes over why Apple's growth may not justify the price investors are paying for the stock.
*Stock prices used were end-of-day prices of Sept. 6, 2023. The video was published on Sept. 7, 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 5, 2023
Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There's no question Apple (NASDAQ: AAPL) is a dominant company in the world today. In this video, Travis Hoium goes over why Apple's growth may not justify the price investors are paying for the stock. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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There's no question Apple (NASDAQ: AAPL) is a dominant company in the world today. In this video, Travis Hoium goes over why Apple's growth may not justify the price investors are paying for the stock. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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There's no question Apple (NASDAQ: AAPL) is a dominant company in the world today. In this video, Travis Hoium goes over why Apple's growth may not justify the price investors are paying for the stock. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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There's no question Apple (NASDAQ: AAPL) is a dominant company in the world today. But that doesn't necessarily make it a great stock to buy. In this video, Travis Hoium goes over why Apple's growth may not justify the price investors are paying for the stock.
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13841.0
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2023-09-09 00:00:00 UTC
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This Warren Buffett Stock Looks Too Good to Pass Up Right Now
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AAPL
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https://www.nasdaq.com/articles/this-warren-buffett-stock-looks-too-good-to-pass-up-right-now
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nan
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nan
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The largest position in Warren Buffett's investment portfolio is Apple (NASDAQ: AAPL). The Oracle of Omaha first took a position in the company in 2016. Due to generous returns over the years, Buffett's stake in Apple has ballooned to account for over half of his entire portfolio's value.
So far in 2023 Apple stock is up an impressive 42%. However, after the company's most recent earnings report, investors punished the stock for the company's less-than-stellar results.
While Apple's shrinking revenue is a legitimate concern, I believe the sell-off is overdone. Read on to see my analysis of Apple's earnings, noting both the highlights and lowlights. Moreover, using some valuation techniques, I'll show you why this could be a great opportunity to buy the dip.
What seems to be the problem?
For the three months ended July 1, Apple's revenue declined about 1% year over year to $81.8 billion. Moreover, through the first nine months of the company's fiscal 2023, Apple's revenue is down roughly 3% annually. To add some additional context, during the most recent quarter Apple's revenue shrank across several geographic regions including the Americas and Japan as well as across product segments such as iPhone, iPad, and Mac. These trends showcase that Apple has been struggling to grow its revenue for several consecutive quarters now.
On the bright side, Apple saw meaningful growth in both its wearables and its services businesses. Services generated $21.2 billion in revenue during the quarter, which represented an all-time record.
During theearnings call management pointed out that Apple reached 1 billion paid subscriptions on its services platform. To put this into perspective, Apple told investors that it has doubled the number of paid subscriptions in just the last three years, while adding 150 million new service subscribers over the last year alone.
While it's impressive, perhaps this isn't entirely surprising. During earnings calls, Apple's management typically likes to highlight the company's active install base. Considering that Apple has 2 billion active devices around the globe, it's natural to think consumer engagement with the company's services would improve.
Investors shouldn't overlook this dynamic because even though the company has been challenged when it comes to revenue growth for several quarters now, the underlying trend is that users remain engaged.
For this reason, I do not view Apple's ecosystem as facing any sort of existential risk. Rather, due to lingering inflation and high interest rates, I believe that consumers are acting with more caution and hesitation when it comes to discretionary items such as expensive new hardware. Moreover, as management points out, consistent operational challenges in the supply chain have added an extra layer of headwind as it pertains to growth.
Image source: Getty Images.
How are investors reacting?
The stock market is an interesting place, and equities ebb and flow all the time for any number of reasons. Since the company reported earnings on Aug. 3, Apple stock is down nearly 4%.
AAPL data by YCharts
While this may not seem like a big move, keep in mind that Apple's market capitalization was roughly $3 trillion before its earnings report. Given this math, Apple has lost well over $100 billion in value since its mixed earnings report.
Should you buy the stock?
Sure, Apple's shrinking revenue base is a big deal. However, obsessing over this fact is not entirely productive, considering the company's massive install base and the parallel growth of its services business.
Given the current macroeconomic picture, I believe that most consumers are opting to pass on new hardware upgrades at the moment. But with that said, variables such as inflation and interest rates will not go up in perpetuity.
While the current state of the consumer is cloudy, current actions from the Federal Reserve are aimed at improving the state of the economy. For this reason, consumer purchasing power should rise in the long term, and companies such as Apple could benefit greatly from an influx of demand. Given this outlook, I believe that the sell-off in Apple stock is an overreaction and now is a great opportunity to lower your cost basis in the stock.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 5, 2023
Adam Spatacco has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL data by YCharts While this may not seem like a big move, keep in mind that Apple's market capitalization was roughly $3 trillion before its earnings report. The largest position in Warren Buffett's investment portfolio is Apple (NASDAQ: AAPL). To add some additional context, during the most recent quarter Apple's revenue shrank across several geographic regions including the Americas and Japan as well as across product segments such as iPhone, iPad, and Mac.
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The largest position in Warren Buffett's investment portfolio is Apple (NASDAQ: AAPL). AAPL data by YCharts While this may not seem like a big move, keep in mind that Apple's market capitalization was roughly $3 trillion before its earnings report. During theearnings call management pointed out that Apple reached 1 billion paid subscriptions on its services platform.
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The largest position in Warren Buffett's investment portfolio is Apple (NASDAQ: AAPL). AAPL data by YCharts While this may not seem like a big move, keep in mind that Apple's market capitalization was roughly $3 trillion before its earnings report. Since the company reported earnings on Aug. 3, Apple stock is down nearly 4%.
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The largest position in Warren Buffett's investment portfolio is Apple (NASDAQ: AAPL). AAPL data by YCharts While this may not seem like a big move, keep in mind that Apple's market capitalization was roughly $3 trillion before its earnings report. Investors shouldn't overlook this dynamic because even though the company has been challenged when it comes to revenue growth for several quarters now, the underlying trend is that users remain engaged.
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13842.0
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2023-09-09 00:00:00 UTC
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2 Vanguard ETFs That Could Turn $200 per Month Into $395,000 or More
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AAPL
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https://www.nasdaq.com/articles/2-vanguard-etfs-that-could-turn-%24200-per-month-into-%24395000-or-more
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nan
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nan
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Investing in the stock market is one of the most effective ways to build long-term wealth, but you'll need the right investments to maximize your earnings.
There's no single correct way to invest; everyone will have unique preferences and risk tolerance. If you're looking for a low-maintenance investment that requires next to no effort on your part, an exchange-traded fund (ETF) could be a smart option.
An ETF contains dozens or even hundreds of stocks, all bundled together into a single investment. This not only provides diversification and lowers your risk, but it also means you don't have to spend time researching and buying individual stocks.
While there are countless ETFs to choose from, these two Vanguard ETFs could turn just $200 per month into $395,000 or more.
1. Vanguard S&P 500 ETF
The Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the S&P 500 index. It includes stocks from 500 of the largest and strongest companies in the U.S., ranging from tech giants like Apple and Amazon to well-established brands like 3M and Procter & Gamble.
S&P 500 ETFs are among the safest types of investments, perfect for risk-averse investors. The index itself has a decades-long history of surviving even the worst market crashes and recessions, so it's extremely likely this ETF will recover from future volatility as well.
Despite its relative safety, this fund could also help you earn a lot of money over time. Historically, the S&P 500 itself has earned an average rate of return of around 10% per year, meaning the annual highs and lows have averaged out to roughly 10% per year over decades.
If you're investing $200 per month while earning a 10% average annual return, here's approximately how much you could accumulate over time depending on how many years you invest:
NUMBER OF YEARS TOTAL SAVINGS
20 $137,000
25 $236,000
30 $395,000
35 $650,000
40 $1,062,000
Data source: Author's calculations via Investor.gov.
To reach $395,000 in total savings, you'll need to invest consistently for 30 years. But if you're able to invest more per month or give your investments more time to grow, you could earn substantially more, potentially even reaching $1 million.
2. Vanguard Growth ETF
The Vanguard Growth ETF (NYSEMKT: VUG) contains 235 stocks from a wide variety of industries. Although around half of the fund is made up of stocks from the tech sector, this ETF still provides plenty of diversification that can help limit your risk.
The biggest difference between a growth ETF and an S&P 500 ETF is that a growth ETF contains stocks with the potential to earn above-average returns. While an S&P 500 ETF is designed to follow the market, a growth ETF is designed to beat the market.
This particular ETF, though, can help maximize your returns while still reducing risk. Around half of the fund is made up of blue chip stocks (such as Apple, Amazon, and Microsoft), while the other half is made up of stocks from up-and-coming companies.
While smaller stocks tend to carry more risk, they also have greater potential for explosive growth. Meanwhile, the behemoth blue chip stocks might see slower growth, but they're also far less risky.
Over the past 10 years, the Vanguard Growth ETF has earned an average rate of return of just under 15% per year. But to play it safe, let's assume your investment only earns a 12% average annual return. If you're investing $200 per month, here's approximately how much that could add up to over time:
NUMBER OF YEARS TOTAL SAVINGS
20 $173,000
25 $320,000
30 $579,000
35 $1,036,000
40 $1,841,000
Data source: Author's calculations via Investor.gov.
If you invest consistently for 30 years, you could accumulate around $579,000, compared to $395,000 with the S&P 500 ETF. And with just a few more years, you could nearly double your total earnings.
Which ETF is right for you?
Whether you choose to invest in the S&P 500 ETF, the growth ETF, or both depends on your personal preferences.
Growth ETFs are inherently riskier, because fast-growing stocks tend to be more volatile than their more established counterparts. There are also never any guarantees in the stock market, so there's always a chance this type of ETF might not actually beat the market at all.
S&P 500 ETFs are generally safer, but again, they often earn lower returns than a growth ETF. For some people, that's a worthwhile trade-off for an investment that's very likely to recover from downturns and see positive returns over time. But it won't be the right fit for everyone.
Where you choose to invest, then, will depend on your priorities. Both of these ETFs can be fantastic options, and with consistency and a long-term outlook, either one could help you earn hundreds of thousands of dollars or more.
10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard Index Funds-Vanguard Growth ETF wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 5, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends 3M. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This not only provides diversification and lowers your risk, but it also means you don't have to spend time researching and buying individual stocks. It includes stocks from 500 of the largest and strongest companies in the U.S., ranging from tech giants like Apple and Amazon to well-established brands like 3M and Procter & Gamble. The index itself has a decades-long history of surviving even the worst market crashes and recessions, so it's extremely likely this ETF will recover from future volatility as well.
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Vanguard Growth ETF The Vanguard Growth ETF (NYSEMKT: VUG) contains 235 stocks from a wide variety of industries. Around half of the fund is made up of blue chip stocks (such as Apple, Amazon, and Microsoft), while the other half is made up of stocks from up-and-coming companies. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF.
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Vanguard Growth ETF The Vanguard Growth ETF (NYSEMKT: VUG) contains 235 stocks from a wide variety of industries. The biggest difference between a growth ETF and an S&P 500 ETF is that a growth ETF contains stocks with the potential to earn above-average returns. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF.
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If you're investing $200 per month while earning a 10% average annual return, here's approximately how much you could accumulate over time depending on how many years you invest: Which ETF is right for you? The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF.
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13843.0
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2023-09-09 00:00:00 UTC
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Could Intel's Mystery Foundry Customer Be Apple?
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AAPL
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https://www.nasdaq.com/articles/could-intels-mystery-foundry-customer-be-apple
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nan
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nan
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Chip giant Intel (NASDAQ: INTC) recently disclosed that it had received a large prepayment from an unnamed customer to secure capacity on its Intel 18A process node. Intel 18A is scheduled to be ready by the end of 2024, and the company expects it to deliver a manufacturing edge over TSMC.
Intel's foundry business already has a few significant customer wins under its belt. The company reached an agreement with MediaTek last year to manufacture chips on Intel's advanced process nodes, and it recently scored Ericsson as a customer. Ericsson will rely on the Intel 18A process for future custom 5G system on chipsets (SoCs).
While the source of the large prepayment is a mystery, Citi analyst Christopher Danely thinks the customer is a "whale," or a customer that will spend far more than the average customer. There are only so many of those, and some seem unlikely. AMD and NVIDIA both compete with Intel in various ways, and while those companies may eventually consider Intel for manufacturing, neither is likely champing at the bit to do so.
Could it be Apple (NASDAQ: AAPL)?
Strong incentives
Apple sells hundreds of millions of devices each year, and most of them are powered by its own in-house chips. Apple is a TSMC customer, relying on the market-leading foundry to churn out enormous quantities of chips on the most advanced process nodes available in the industry. Apple's chip-design chops coupled with its use of cutting-edge manufacturing technology gives the company an important edge in its core markets.
With most of its suppliers, Apple has extreme leverage thanks to the volume of devices it ships each year. A company supplying a chip for Apple's iPhone has little ability to raise prices. Apple could choose an alternative supplier and yank away a massive chunk of revenue, or it could even decide to design its own chip. One example: Apple is reportedly working on custom chips to handle cellular connectivity, Wi-Fi, and Bluetooth.
With TSMC, Apple has little leverage because there is no viable alternative. Apple needs the most advanced manufacturing technology at massive volumes. While Apple used to rely on Samsung for some of its chips, TSMC has pulled far enough ahead technologically that it's the only game in town for all intents and purposes. Case in point: TSMC hiked wafer prices last year, and Apple had no choice but to accept the company's demands.
If Intel successfully brings its Intel 18A process online in late 2024 and fulfills its promise of leapfrogging TSMC, it's a whole new ballgame. Not only will there be more leading-edge manufacturing capacity available across the industry, but Apple will have far more leverage to negotiate pricing. Apple could split orders between TSMC and Intel, or at least threaten to do so to secure more favorable terms.
Apple or not, a big step forward
We won't know for a while which company has handed Intel a big check for Intel 18A capacity. It will be huge news if it's Apple, but any large semiconductor designer would be a big win for Intel. Intel is working with Arm to optimize Intel 18A for Arm-based chips, so any major smartphone chip designer is a possibility.
Intel's push into the foundry business has been a long, expensive journey, and it won't pay off until 2025 at the earliest as Intel 18A ramps up. But the big prepayment from a major customer is an indication that the company is on the right track.
10 stocks we like better than Intel
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Intel wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 5, 2023
Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Could it be Apple (NASDAQ: AAPL)? The company reached an agreement with MediaTek last year to manufacture chips on Intel's advanced process nodes, and it recently scored Ericsson as a customer. Apple is a TSMC customer, relying on the market-leading foundry to churn out enormous quantities of chips on the most advanced process nodes available in the industry.
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Could it be Apple (NASDAQ: AAPL)? The company reached an agreement with MediaTek last year to manufacture chips on Intel's advanced process nodes, and it recently scored Ericsson as a customer. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing.
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Could it be Apple (NASDAQ: AAPL)? Chip giant Intel (NASDAQ: INTC) recently disclosed that it had received a large prepayment from an unnamed customer to secure capacity on its Intel 18A process node. Apple or not, a big step forward We won't know for a while which company has handed Intel a big check for Intel 18A capacity.
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Could it be Apple (NASDAQ: AAPL)? Chip giant Intel (NASDAQ: INTC) recently disclosed that it had received a large prepayment from an unnamed customer to secure capacity on its Intel 18A process node. Apple is a TSMC customer, relying on the market-leading foundry to churn out enormous quantities of chips on the most advanced process nodes available in the industry.
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13844.0
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2023-09-09 00:00:00 UTC
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Navigating Market Volatility: 3 Defensive Stocks to Weather the Storm
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AAPL
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https://www.nasdaq.com/articles/navigating-market-volatility%3A-3-defensive-stocks-to-weather-the-storm
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nan
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nan
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Having a few steady, defensive stocks in your portfolio is a great idea, and in this video Travis Hoium notes three great stocks that are strong businesses to own in any market.
*Stock prices used were end-of-day prices of Aug. 31, 2023. The video was published on Sept. 3, 2023.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 28, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, and Verizon Communications. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel.
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Travis Hoium has positions in Alphabet, Apple, and Verizon Communications. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool recommends Verizon Communications.
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Having a few steady, defensive stocks in your portfolio is a great idea, and in this video Travis Hoium notes three great stocks that are strong businesses to own in any market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 28, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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Having a few steady, defensive stocks in your portfolio is a great idea, and in this video Travis Hoium notes three great stocks that are strong businesses to own in any market. That's right -- they think these 10 stocks are even better buys. Travis Hoium has positions in Alphabet, Apple, and Verizon Communications.
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13845.0
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2023-09-09 00:00:00 UTC
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AAPL and META: Is There More Upside Left in These Buzzing Reddit Stocks?
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AAPL
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https://www.nasdaq.com/articles/aapl-and-meta%3A-is-there-more-upside-left-in-these-buzzing-reddit-stocks
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nan
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nan
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Shares of the top technology giants Apple (NASDAQ:AAPL) and Meta Platforms (NASDAQ:META) are among the most widely discussed stocks on the social media platform Reddit. While these shares are buzzing on Reddit and have significantly gained mentions, they have outperformed the S&P 500 Index (SPX) and have appreciated considerably on a year-to-date basis. Despite the rally in their prices, analysts’ average price targets suggest a decent upside in these stocks.
With this background, let’s delve into these trending Reddit stocks.
Can Apple's Stock Go Higher?
Apple stock has gained over 37% year-to-date. However, its stock came under pressure recently due to concerns over iPhone sales in China. Nonetheless, Morgan Stanley analyst Erik Woodring reiterated a Buy on Apple stock on September 7 and doesn’t expect the issues to snowball. Further, Woodring added that Apple is performing well in the Chinese market.
On the other hand, Apple will introduce its iPhone 15 and a new version of the Apple Watch on September 12. Commenting on the launch, Goldman Sachs analyst Mike Ng said he expects the iPhone 15 to lead to an improved price/mix. He maintained a Buy on AAPL stock on August 31 and expects the company to benefit from a large installed base and lower churn.
Overall, Apple is expected to benefit from a growing installed base of paid subscriptions and strength in the Services segment. However, near-term macro uncertainty is keeping analysts a bit cautious.
Apple stock has received 22 Buy and eight Hold recommendations for a Strong Buy consensus rating. Analysts’ average price target of $207.03 implies that it can go 16.6% higher from current levels.
What is the Price Target for Meta?
Meta stock has gained over 148% year-to-date. Despite the surge in price, analysts’ average 12-month price target of $376.19 suggests a further upside potential of 25.96% from current levels.
The improving advertising market, the company’s focus on driving user engagement, deep cost-cutting measures, and investments in AI (artificial intelligence) provide a solid foundation for future revenue and earnings growth.
Citing the reacceleration in ad growth, Morgan Stanley analyst Brian Nowak reiterated a Buy on Meta stock on September 6. Including Nowak, Meta stock has received 41 Buy recommendations. At the same time, two analysts have rated Meta stock a Hold. Overall, Meta has a Strong Buy consensus rating.
The Bottom Line
Apple and Meta stocks are trending on Reddit and have good long-term growth prospects. Further, analysts’ price target indicates further upside in both of these stocks. However, Meta, with higher upside potential from current levels (based on analysts’ price target) and a Strong Buy consensus rating, looks more compelling than Apple in the short term.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of the top technology giants Apple (NASDAQ:AAPL) and Meta Platforms (NASDAQ:META) are among the most widely discussed stocks on the social media platform Reddit. He maintained a Buy on AAPL stock on August 31 and expects the company to benefit from a large installed base and lower churn. Nonetheless, Morgan Stanley analyst Erik Woodring reiterated a Buy on Apple stock on September 7 and doesn’t expect the issues to snowball.
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Shares of the top technology giants Apple (NASDAQ:AAPL) and Meta Platforms (NASDAQ:META) are among the most widely discussed stocks on the social media platform Reddit. He maintained a Buy on AAPL stock on August 31 and expects the company to benefit from a large installed base and lower churn. Apple stock has received 22 Buy and eight Hold recommendations for a Strong Buy consensus rating.
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Shares of the top technology giants Apple (NASDAQ:AAPL) and Meta Platforms (NASDAQ:META) are among the most widely discussed stocks on the social media platform Reddit. He maintained a Buy on AAPL stock on August 31 and expects the company to benefit from a large installed base and lower churn. Nonetheless, Morgan Stanley analyst Erik Woodring reiterated a Buy on Apple stock on September 7 and doesn’t expect the issues to snowball.
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Shares of the top technology giants Apple (NASDAQ:AAPL) and Meta Platforms (NASDAQ:META) are among the most widely discussed stocks on the social media platform Reddit. He maintained a Buy on AAPL stock on August 31 and expects the company to benefit from a large installed base and lower churn. Nonetheless, Morgan Stanley analyst Erik Woodring reiterated a Buy on Apple stock on September 7 and doesn’t expect the issues to snowball.
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13846.0
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2023-09-08 00:00:00 UTC
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What Lies Ahead for Apple ETFs After iPhone Use Ban?
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AAPL
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https://www.nasdaq.com/articles/what-lies-ahead-for-apple-etfs-after-iphone-use-ban
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nan
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nan
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The tech giant Apple Inc. AAPL shed nearly $200 billion in market value in just two days amid the reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. Notably, China is Apple’s third-largest market, accounting for 18% of the company’s total revenues last year.
The Wall Street Journal disclosed on Wednesday that Beijing had issued a directive instructing officials within central government agencies not to bring iPhones into their workplaces or use them for professional purposes. Bloomberg News later reported that this prohibition could extend to employees of state-owned enterprises and government-affiliated institutions.
Bernstein analyst believes an iPhone ban on all Chinese government employees could cut Apple's phone sales in China by as much as 5%. However, most analysts are also calling the reaction overblown, considering China is a much larger market beyond government agencies. Wedbush Securities thinks the ban would affect less than 5,00,000 iPhones of the roughly 45 million he expects to be sold in the country over the next 12 months.
The rumored restriction on iPhones comes closely after Huawei, a Chinese tech giant, launched its new premium smartphone. Bank of America analysts found the timing of these events to be noteworthy.
Growth Prospects
One of the primary motivations to invest in Apple is its dominant presence in the consumer tech landscape, positioning it favorably for expansion into rapidly growing sectors like artificial intelligence (AI) and virtual/augmented reality (VR/AR). These areas are anticipated to see compound annual growth rates exceeding 30% until 2030 (read: Guide to Artificial Intelligence ETFs).
Historically, Apple has demonstrated an ability to penetrate new markets and swiftly capture significant market share. With the recent launch of its VR/AR headset, the Vision Pro, in June, Apple's growth potential seems even more promising.
Additionally, the iPhone maker is expanding into new markets. Apple's Services segment, which includes the App Store, iCloud, Apple Music, Apple TV+ and Apple Arcade, has been a significant growth driver. With a growing global user base, these services are expected to generate massive revenues.
Solid Zacks Estimates
Apple boasts the world’s highest stock market valuation, at nearly $2.8 trillion. It has seen positive earnings estimate revision of a penny for both the current and the next fiscal year over the past 30 days.
Apple currently has an average brokerage recommendation (ABR) of 1.64 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations made by 29 brokerage firms. The current ABR compares to an ABR of 1.64 a month ago based on 29 recommendations. Of the 29 recommendations deriving the current ABR, 18 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 62.07% and 10.34% of all recommendations. A month ago, Strong Buy made up 62.07%, while Buy represented 10.34%.
Based on short-term price targets offered by 27 analysts, the average price target for Apple comes to $205.07. The forecasts range from a low of $140.00 to a high of $240.00.
Currently, Apple carries a Zacks Rank #3 (Hold) and a Growth Score of B, suggesting that the iPhone maker is primed for growth. Apple stock is cheap, trading at a P/E ratio of 30.26 compared with Amazon’s AMZN 60.66 times, Netflix’s NFLX 37.41 times and Microsoft’s MSFT 30.54 times (see: all the Technology ETFs here).
Buy Opportunity!
That said, investors should consider the declining prices in Apple to be a better entry point. Several ETFs have the largest allocation to the tech titan. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Invesco QQQ QQQ have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Technology Select Sector SPDR Fund (XLK)
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 65 securities in its basket, with Apple making up for a 21.7% share. Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $51.6 billion and an average daily volume of 6 million shares. The fund charges 10 bps in fees per year.
Vanguard Information Technology ETF (VGT)
Vanguard Information Technology ETF manages about $54 billion in its asset base and provides exposure to 323 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 22.7% share. Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 537,000 shares (read: Don't Fear Higher Rates: Tech ETFs to Rule on Nvidia & Allies).
MSCI Information Technology Index ETF (FTEC)
MSCI Information Technology Index ETF is home to 311 technology stocks with AUM of $7.3 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 22.3% allocation. MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 228,000 shares a day.
iShares US Technology ETF (IYW)
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 135 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 17.5% of the assets. iShares Dow Jones US Technology ETF has AUM of $11.4 billion and charges 40 bps in fees and expenses. Volume is good as it exchanges 924,000 shares a day.
Invesco QQQ (QQQ)
Invesco QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Apple accounts for an 11.1% share. Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $207 billion and an average daily volume of 46 million shares. It charges investors 20 bps in annual fees.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The tech giant Apple Inc. AAPL shed nearly $200 billion in market value in just two days amid the reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The Wall Street Journal disclosed on Wednesday that Beijing had issued a directive instructing officials within central government agencies not to bring iPhones into their workplaces or use them for professional purposes.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The tech giant Apple Inc. AAPL shed nearly $200 billion in market value in just two days amid the reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Invesco QQQ QQQ have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The tech giant Apple Inc. AAPL shed nearly $200 billion in market value in just two days amid the reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Invesco QQQ QQQ have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
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The tech giant Apple Inc. AAPL shed nearly $200 billion in market value in just two days amid the reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Notably, China is Apple’s third-largest market, accounting for 18% of the company’s total revenues last year.
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13847.0
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2023-09-08 00:00:00 UTC
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Stock Market News for Sep 8, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-sep-8-2023
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nan
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nan
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U.S. stock markets closed mixed on Thursday as market participants remained uncertain whether the Fed will opt for more interest rate hike this year or not. Moreover, a decision of the government of China also affected technology sector. The S&P 500 and the Nasdaq Composite ended in negative territory while the Dow finished in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) up 0.2% to close at 34,500.73 after a choppy session. Notably, 14 components of the 30-stock index ended in positive territory, while 16 in negative territory. At its intraday low, the blue-chip index was down nearly 100 points.
The tech-heavy Nasdaq Composite finished at 13,748.83, sliding 0.9% or 123.64 points due to weak performance of large-cap technology stocks. The tech-laden index posted a four-day losing streak.
The S&P 500 dropped 0.3% to end at 4,451.14. Six out of 11 broad sectors of the benchmark ended in negative territory, while five finished in green. The Technology Select Sector SPDR (XLK) tumbled 1.5%, while the Utilities Select Sector SPDR (XLU) gained 1.3%.
The fear-gauge CBOE Volatility Index (VIX) was down 0.4% to 14.40. A total of 9.76 billion shares were traded on Thursday, lower than the last 20-session average of 10.1 billion. Decliners outnumbered decliners on the NYSE by a 1.80-to-1 ratio. On Nasdaq, a 2.03-to-1 ratio favored declining issues.
Technology Stocks Suffer
Crude oil prices spiked on Sep 5, following the decision of Saudi Arabia to extend its daily production cut decision until the end of 2023. Investors are concerned that higher crude oil prices will result in higher inflation.
Moreover, yields on various U.S. government bonds spiked on Sep 5 and 6. Although these yields fell marginally on Sep 7, they remained elevated. Higher risk-free market interest rate is detrimental to growth stocks like technology. These companies depend on easy access to cheap credits.
Apple Suffers Setback
Finally, China has banned the use of iPhone of Apple inc. AAPL for its government employees for security reasons. On Sep 6, the Wall Street Journal reported that China has ordered officials at central government agencies not to bring iPhones into the office or use them for work. On Sep 7, Bloomberg reported that the ban could be extended to other state companies and government-backed agencies.
Recently, tensions between the United States and China heightened regarding the sovereignty of Taiwan. Together mainland China, Hong Kong and Taiwan constitute Apple’s third-largest market, accounting for nearly 18% of total revenue.
Consequently, stock price of Apple tumbled more than 4% in the past two trading sessions. Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Department of Labor reported that weekly jobless claims decreased by 13,000 to 216,000 for the week ended Sep 2, lagging the consensus estimate of 236,000. Previous week’s data was revised upward to 229,000 from 228,000 reported earlier. Continuing claims — people who already received government unemployment benefit and run a week behind the headline number — came in at 1.679 million for the week ended Aug 26, a decrease of 40,000 from the previous week.
Nonfarm productivity in second-quarter 2023 revised downward to 3.5% from 3.7% reported earlier. Unit labor costs increased to 2.2% in revised estimate from 1.6% reported earlier.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Suffers Setback Finally, China has banned the use of iPhone of Apple inc. AAPL for its government employees for security reasons. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The tech-heavy Nasdaq Composite finished at 13,748.83, sliding 0.9% or 123.64 points due to weak performance of large-cap technology stocks.
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Apple Suffers Setback Finally, China has banned the use of iPhone of Apple inc. AAPL for its government employees for security reasons. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The S&P 500 and the Nasdaq Composite ended in negative territory while the Dow finished in positive zone.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Suffers Setback Finally, China has banned the use of iPhone of Apple inc. AAPL for its government employees for security reasons. Technology Stocks Suffer Crude oil prices spiked on Sep 5, following the decision of Saudi Arabia to extend its daily production cut decision until the end of 2023.
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Apple Suffers Setback Finally, China has banned the use of iPhone of Apple inc. AAPL for its government employees for security reasons. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The S&P 500 and the Nasdaq Composite ended in negative territory while the Dow finished in positive zone.
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13848.0
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2023-09-08 00:00:00 UTC
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New flaw in Apple devices led to spyware infection, researchers say
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AAPL
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https://www.nasdaq.com/articles/new-flaw-in-apple-devices-led-to-spyware-infection-researchers-say-0
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nan
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nan
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By Christopher Bing and Zeba Siddiqui
Sept 7 (Reuters) - Researchers at digital watchdog group Citizen Lab said on Thursday they found spyware they linked to Israeli firm NSO that exploited a newly discovered flaw in Apple AAPL.O devices.
While inspecting the Apple device of an employee of a Washington-based civil society group last week, Citizen Lab said it found the flaw had been used to infect the device with NSO's Pegasus spyware, it said in a statement.
"We attribute the exploit to NSO Group's Pegasus spyware with high confidence, based on forensics we have from the target device," said Bill Marczak, senior researcher at Citizen Lab, which is based at the University of Toronto's Munk School of Global Affairs and Public Policy.
He said the attacker likely made a mistake during the installation which is how Citizen Lab found the spyware.
Citizen Lab said Apple confirmed to them that using the high security feature "Lockdown Mode" available on Apple devices blocks this particular attack.
"This shows that civil society is once again serving as the early warning system about really sophisticated attacks," said John Scott-Railton, senior researcher at Citizen Lab.
Citizen Lab did not provide further details on the affected individual or the organization.
The flaw allowed compromise of iPhones running the latest version of iOS (16.6) without any interaction from the victim, the digital watchdog said. The new update fixes this vulnerability.
Apple issued new updates on its devices after investigating the flaws reported by Citizen Lab. An Apple spokesperson said it had no further comment, while Citizen Lab urged consumers to update their devices.
NSO said in a statement, "We are unable to respond to any allegations that do not include any supporting research."
The Israeli firm has been blacklisted by the U.S. government since 2021 for alleged abuses, including surveillance of government officials and journalists.
(Reporting by Zeba Siddiqui and Christopher Bing; Editing by Jamie Freed and Daniel Wallis)
((zeba.siddiqui@tr.com; christopher.bing@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Christopher Bing and Zeba Siddiqui Sept 7 (Reuters) - Researchers at digital watchdog group Citizen Lab said on Thursday they found spyware they linked to Israeli firm NSO that exploited a newly discovered flaw in Apple AAPL.O devices. "This shows that civil society is once again serving as the early warning system about really sophisticated attacks," said John Scott-Railton, senior researcher at Citizen Lab. The flaw allowed compromise of iPhones running the latest version of iOS (16.6) without any interaction from the victim, the digital watchdog said.
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By Christopher Bing and Zeba Siddiqui Sept 7 (Reuters) - Researchers at digital watchdog group Citizen Lab said on Thursday they found spyware they linked to Israeli firm NSO that exploited a newly discovered flaw in Apple AAPL.O devices. While inspecting the Apple device of an employee of a Washington-based civil society group last week, Citizen Lab said it found the flaw had been used to infect the device with NSO's Pegasus spyware, it said in a statement. "We attribute the exploit to NSO Group's Pegasus spyware with high confidence, based on forensics we have from the target device," said Bill Marczak, senior researcher at Citizen Lab, which is based at the University of Toronto's Munk School of Global Affairs and Public Policy.
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By Christopher Bing and Zeba Siddiqui Sept 7 (Reuters) - Researchers at digital watchdog group Citizen Lab said on Thursday they found spyware they linked to Israeli firm NSO that exploited a newly discovered flaw in Apple AAPL.O devices. While inspecting the Apple device of an employee of a Washington-based civil society group last week, Citizen Lab said it found the flaw had been used to infect the device with NSO's Pegasus spyware, it said in a statement. "We attribute the exploit to NSO Group's Pegasus spyware with high confidence, based on forensics we have from the target device," said Bill Marczak, senior researcher at Citizen Lab, which is based at the University of Toronto's Munk School of Global Affairs and Public Policy.
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By Christopher Bing and Zeba Siddiqui Sept 7 (Reuters) - Researchers at digital watchdog group Citizen Lab said on Thursday they found spyware they linked to Israeli firm NSO that exploited a newly discovered flaw in Apple AAPL.O devices. While inspecting the Apple device of an employee of a Washington-based civil society group last week, Citizen Lab said it found the flaw had been used to infect the device with NSO's Pegasus spyware, it said in a statement. Apple issued new updates on its devices after investigating the flaws reported by Citizen Lab.
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13849.0
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2023-09-08 00:00:00 UTC
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If You Like SPHQ, Check Out Quality ETFs XMHQ and XSHQ
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AAPL
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https://www.nasdaq.com/articles/if-you-like-sphq-check-out-quality-etfs-xmhq-and-xshq
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nan
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nan
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The second best-performing S&P 500 factor in August, quality ETFs are currently having a moment.
The popular Invesco S&P 500 Quality ETF (SPHQ) has seen strong inflows recently, accreting $319 million in net flows in one month. Year to date, the $6 billion fund has hauled in $1.5 billion year to date,
While SPHQ is a great way to enhance portfolios, investors should not forget about the quality ETFs available down the cap spectrum.
"When advisors think of high-quality stocks, they tend to consider large caps,” Todd Rosenbluth, head of research at VettaFi, said. “However, focusing on companies with strong balance sheets and other favorable fundamental attributes matters a lot with smaller companies. A quality tilt can reduce the risks of investing in less established companies."
For quality exposure to mid and small-cap companies, investors can look to Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P SmallCap Quality ETF (XSHQ).
Comparing Invesco’s Quality Lineup
SPHQ comprises 100 companies from the S&P 500 that have impressive quality scores. These scores are calculated based on three fundamental measures: return on equity, accruals ratio, and financial leverage ratio.
SPHQ includes many mega caps, such as Microsoft (MSFT) and Apple Inc (AAPL). Conversely, XMHQ provides exposure to the mid-cap space.
XMHQ has been rising in popularity in recent months. The fund has seen $139 million in one-month net flows, bringing year-to-date flows to $727 million.
XMHQ tracks an index that includes the 80 securities in the S&P Midcap 400 Index with the highest quality scores, calculated using the same proprietary factors as SPHQ. The fund has $1.3 billion in assets under management.
Names in XMHQ include Manhattan Associates Inc (MANH) and Toro Company (TTC).
XSHQ is the smallest of the three -- in terms of its cap size exposure and assets under management ($49 million). The fund comprises 120 securities in the S&P SmallCap 600 Index that have the highest quality score, commutated in the same way as SPHQ and XMHQ.
XSHQ includes names such as SM Energy Company (SM) and Mueller Industries Inc (MLI).
For more news, information, and analysis, visit the Innovative ETFs Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SPHQ includes many mega caps, such as Microsoft (MSFT) and Apple Inc (AAPL). The popular Invesco S&P 500 Quality ETF (SPHQ) has seen strong inflows recently, accreting $319 million in net flows in one month. "When advisors think of high-quality stocks, they tend to consider large caps,” Todd Rosenbluth, head of research at VettaFi, said.
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SPHQ includes many mega caps, such as Microsoft (MSFT) and Apple Inc (AAPL). The popular Invesco S&P 500 Quality ETF (SPHQ) has seen strong inflows recently, accreting $319 million in net flows in one month. For quality exposure to mid and small-cap companies, investors can look to Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P SmallCap Quality ETF (XSHQ).
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SPHQ includes many mega caps, such as Microsoft (MSFT) and Apple Inc (AAPL). Year to date, the $6 billion fund has hauled in $1.5 billion year to date, While SPHQ is a great way to enhance portfolios, investors should not forget about the quality ETFs available down the cap spectrum. For quality exposure to mid and small-cap companies, investors can look to Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P SmallCap Quality ETF (XSHQ).
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SPHQ includes many mega caps, such as Microsoft (MSFT) and Apple Inc (AAPL). The popular Invesco S&P 500 Quality ETF (SPHQ) has seen strong inflows recently, accreting $319 million in net flows in one month. For quality exposure to mid and small-cap companies, investors can look to Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P SmallCap Quality ETF (XSHQ).
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13850.0
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2023-09-08 00:00:00 UTC
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Pre-Markets Mixed to Close a Holiday Shortened Week
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AAPL
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https://www.nasdaq.com/articles/pre-markets-mixed-to-close-a-holiday-shortened-week
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nan
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nan
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Pre-market futures are up and down this final trading day of the holiday-shortened season, and so far, September’s reputation for being a cooling agent on equity valuations — and that’s being kind — is bearing out. The four major indices have not been in lock-step, but are all down month to date: the Dow -1.22%, the S&P 500 -1.51%, the Nasdaq -1.46% and the small-cap Russell 2000 -2.42%.
We don’t have a lot of market catalysts expected today, although Wholesale Inventories for July come out after the opening bell, as does Consumer Credit, also for July, later this afternoon. Next week will be the bigger one for economic prints, with Consumer Price Index (CPI) and Producer Price Index (PPI) figures out mid-week, along with Retail Sales and a host of other metrics. These will be closely watched by the Fed, who meets on monetary policy the following week, as well as analysts paying close attention to what the Fed is likely to do.
One of this week’s main issues is the economic slowdown in China once again — and, perhaps more importantly, the iPhone ban in the country which has sent Apple AAPL shares down -5.5% in the past week. But the economic pressures in the world’s second-largest economy is also affecting luxury brands such as LVMH LVMUY, which is down -9.5% over the past five trading days. Much of the positive outlook for the global economy had been predicated on a continued improvement in the Chinese economy. Is this latest downturn a hiccup or the sign of something more serious?
In any case, the blue-chip Dow is on pace for its third down-week in the past four, same as the Nasdaq and Russell, while the S&P is down four straight. Keeping powder dry looks like the move, at least until new potential market movers emerge. Of those things scheduled, we’d suggest earmarking next Wednesday’s core CPI, which last month came in at 2-month lows, to +4.7%. While nicely off the 6%+ reads we were seeing a year ago, it’s still a ways from the Fed’s optimal inflation level of 2%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One of this week’s main issues is the economic slowdown in China once again — and, perhaps more importantly, the iPhone ban in the country which has sent Apple AAPL shares down -5.5% in the past week. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report To read this article on Zacks.com click here. Pre-market futures are up and down this final trading day of the holiday-shortened season, and so far, September’s reputation for being a cooling agent on equity valuations — and that’s being kind — is bearing out.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report To read this article on Zacks.com click here. One of this week’s main issues is the economic slowdown in China once again — and, perhaps more importantly, the iPhone ban in the country which has sent Apple AAPL shares down -5.5% in the past week. Next week will be the bigger one for economic prints, with Consumer Price Index (CPI) and Producer Price Index (PPI) figures out mid-week, along with Retail Sales and a host of other metrics.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report To read this article on Zacks.com click here. One of this week’s main issues is the economic slowdown in China once again — and, perhaps more importantly, the iPhone ban in the country which has sent Apple AAPL shares down -5.5% in the past week. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come.
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One of this week’s main issues is the economic slowdown in China once again — and, perhaps more importantly, the iPhone ban in the country which has sent Apple AAPL shares down -5.5% in the past week. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report To read this article on Zacks.com click here. Pre-market futures are up and down this final trading day of the holiday-shortened season, and so far, September’s reputation for being a cooling agent on equity valuations — and that’s being kind — is bearing out.
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13851.0
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2023-09-08 00:00:00 UTC
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Holiday-Shortened Trading Rocked by Volatility
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AAPL
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https://www.nasdaq.com/articles/holiday-shortened-trading-rocked-by-volatility
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nan
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nan
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Coming off a dismal August performance, investors had high hopes for Wall Street, despite September's historically bearish tendencies. It looks like history might prevail yet again. Oil prices weighed on stocks to start the week, while the Nasdaq Composite (IXIC) was battered on Wednesday and Thursday as interest rate fears weighed on the tech sector. The Cboe Volatility Index (VIX) started a winning run in lockstep with the selloff, and as of Friday afternoon, the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are all higher but staring down weekly losses.
More Tech, AI Stocks To Watch
Tech stocks dominated headlines, including a tricky landscape for Apple (AAPL), after Bloomberg News and The Wall Street Journal reported China planned to extend its iPhone ban in certain capacities. Airbnb (ABNB) stock soared after it was revealed the company's stock will join the SPX later this month. Options traders blasted streaming concern Roku (ROKU) after the company announced a round of job cuts; and UBS downgraded Square and Cash App operator Block (SQ) on growth deceleration and its impact on price.
The artificial intelligence (AI) sector remains a buzzword. Mizuho upgraded Adobe (ADBE) after praising the company's generative AI product Adobe Firefly. Similarly, Oracle (ORCL) received a bull note amid potential tailwinds from the AI boom. Rounding things out, C3.asi (AI) failed to capitalize on the optimism, as its fiscal second-quarter results came in worse than analysts anticipated.
Schaeffer's Senior Staff Weigh in on August's Pullback
Next week, investors will look towards retail sales data and a key inflation reading for insight into the state of the economy. Meanwhile, Senior Quantitative Analyst Rocky White thinks there's a chance September could be reverse last month's losses, and Senior V.P. of Research Todd Salamone's seems to agree.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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More Tech, AI Stocks To Watch Tech stocks dominated headlines, including a tricky landscape for Apple (AAPL), after Bloomberg News and The Wall Street Journal reported China planned to extend its iPhone ban in certain capacities. Coming off a dismal August performance, investors had high hopes for Wall Street, despite September's historically bearish tendencies. Rounding things out, C3.asi (AI) failed to capitalize on the optimism, as its fiscal second-quarter results came in worse than analysts anticipated.
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More Tech, AI Stocks To Watch Tech stocks dominated headlines, including a tricky landscape for Apple (AAPL), after Bloomberg News and The Wall Street Journal reported China planned to extend its iPhone ban in certain capacities. Oil prices weighed on stocks to start the week, while the Nasdaq Composite (IXIC) was battered on Wednesday and Thursday as interest rate fears weighed on the tech sector. Schaeffer's Senior Staff Weigh in on August's Pullback Next week, investors will look towards retail sales data and a key inflation reading for insight into the state of the economy.
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More Tech, AI Stocks To Watch Tech stocks dominated headlines, including a tricky landscape for Apple (AAPL), after Bloomberg News and The Wall Street Journal reported China planned to extend its iPhone ban in certain capacities. Oil prices weighed on stocks to start the week, while the Nasdaq Composite (IXIC) was battered on Wednesday and Thursday as interest rate fears weighed on the tech sector. Options traders blasted streaming concern Roku (ROKU) after the company announced a round of job cuts; and UBS downgraded Square and Cash App operator Block (SQ) on growth deceleration and its impact on price.
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More Tech, AI Stocks To Watch Tech stocks dominated headlines, including a tricky landscape for Apple (AAPL), after Bloomberg News and The Wall Street Journal reported China planned to extend its iPhone ban in certain capacities. Coming off a dismal August performance, investors had high hopes for Wall Street, despite September's historically bearish tendencies. Oil prices weighed on stocks to start the week, while the Nasdaq Composite (IXIC) was battered on Wednesday and Thursday as interest rate fears weighed on the tech sector.
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13852.0
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2023-09-08 00:00:00 UTC
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Are Investors Too Overweight Tech Stocks?
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AAPL
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https://www.nasdaq.com/articles/are-investors-too-overweight-tech-stocks
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nan
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nan
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According to a Bank of America fund manager survey, investors are the most overweight they have been in the technology sector since December 2021, with 60% of respondents saying being long big tech as the most crowded trade. A Bank of America analysis of Q2 filings shows that 20% of stock funds had more than 40% of their assets in the seven biggest technology companies. The seven stocks accounted for 29% of active funds’ weight in S&P 500 companies, 150 basis points higher than their weight in the index.
Investors have been flocking into technology stocks as growth in both earnings and revenue is expected to outpace the overall market next year. However, this week’s weakness in Apple (AAPL) and its suppliers due to China’s ban on iPhone use in government-backed agencies and state companies are questioning if recent strength in the sector can continue. BNP Paribas said, “Where tech goes is going to be where the U.S. equity market goes. Tech has shown such strong leadership that if it rolls over, it’s going to be very, very challenging for the market to perform.”
The excitement this year over artificial intelligence (AI) and signs that the Federal Reserve was nearing the end of its tightening campaign helped push the Nasdaq 100 Stock Index ($IUXX) (QQQ) to a +39% gain in the first half of the year. However, the market backdrop has become less friendly, with the trouble with Apple and rising Treasury yields threatening the tech sector’s sky-high valuations. As a result, the Nasdaq 100 is virtually flat so far in the third quarter.
The elevated valuations of technology stocks suggest that investors may have become overly confident in the sector. The Nasdaq 100 trades at 24 times estimated earnings, above its 10-year average of 21, while Apple, Microsoft (MSFT), and Nvidia (NVDA) all trade at premiums to both their own historical averages and the market overall. Truist Advisory Services said long-term bets on tech make sense, but crowding and other near-term concerns have caused them to turn neutral on the technology sector.
Some analysts are concerned that a bubble may be forming in technology stocks. Last week, UBS Wealth Management said that relative to the multiple of the S&P 500 Stock Index ($SPX) (SPY), the tech sector’s price-to-earnings ratio stands at “its highest level since the global financial crisis.” The recent plunge in Apple could be a warning of the overextended valuations in technology stocks. Interactive Brokers said, “When the largest company is facing restrictions in a major economy, that is a giant headwind, and it should force investors to reassess valuations.”
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2 Leading Tech Stocks to Watch as AI Disrupts Gaming
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, this week’s weakness in Apple (AAPL) and its suppliers due to China’s ban on iPhone use in government-backed agencies and state companies are questioning if recent strength in the sector can continue. According to a Bank of America fund manager survey, investors are the most overweight they have been in the technology sector since December 2021, with 60% of respondents saying being long big tech as the most crowded trade. 2 Leading Tech Stocks to Watch as AI Disrupts Gaming On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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However, this week’s weakness in Apple (AAPL) and its suppliers due to China’s ban on iPhone use in government-backed agencies and state companies are questioning if recent strength in the sector can continue. According to a Bank of America fund manager survey, investors are the most overweight they have been in the technology sector since December 2021, with 60% of respondents saying being long big tech as the most crowded trade. Tech has shown such strong leadership that if it rolls over, it’s going to be very, very challenging for the market to perform.” The excitement this year over artificial intelligence (AI) and signs that the Federal Reserve was nearing the end of its tightening campaign helped push the Nasdaq 100 Stock Index ($IUXX) (QQQ) to a +39% gain in the first half of the year.
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However, this week’s weakness in Apple (AAPL) and its suppliers due to China’s ban on iPhone use in government-backed agencies and state companies are questioning if recent strength in the sector can continue. Tech has shown such strong leadership that if it rolls over, it’s going to be very, very challenging for the market to perform.” The excitement this year over artificial intelligence (AI) and signs that the Federal Reserve was nearing the end of its tightening campaign helped push the Nasdaq 100 Stock Index ($IUXX) (QQQ) to a +39% gain in the first half of the year. Last week, UBS Wealth Management said that relative to the multiple of the S&P 500 Stock Index ($SPX) (SPY), the tech sector’s price-to-earnings ratio stands at “its highest level since the global financial crisis.” The recent plunge in Apple could be a warning of the overextended valuations in technology stocks.
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However, this week’s weakness in Apple (AAPL) and its suppliers due to China’s ban on iPhone use in government-backed agencies and state companies are questioning if recent strength in the sector can continue. According to a Bank of America fund manager survey, investors are the most overweight they have been in the technology sector since December 2021, with 60% of respondents saying being long big tech as the most crowded trade. A Bank of America analysis of Q2 filings shows that 20% of stock funds had more than 40% of their assets in the seven biggest technology companies.
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13853.0
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2023-09-08 00:00:00 UTC
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Apple endorses California bill to oblige companies to report carbon footprint
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AAPL
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https://www.nasdaq.com/articles/apple-endorses-california-bill-to-oblige-companies-to-report-carbon-footprint
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nan
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nan
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By Isla Binnie
NEW YORK, Sept 8 (Reuters) - Apple AAPL.O has endorsed a California Senate bill that would require large companies to report the levels of greenhouse gases they emit every year, the senator proposing the measure said,making it the latest major company to do so.
"Throughout our environmental journey, we've emphasized the importance of measurement and reporting to help us understand our impact," said the letter, signed by Apple's director for state and local government affairs D. Michael Foulkes, a copy of which Senator Scott Wiener posted on Thursday to X, formerly known as Twitter.
Wiener's bill would require public and private companies with annual revenue in excess of $1 billion who do business in traditionally climate-conscious California to disclose independently verified data on their planet-warming emissions.
"Thank you, Apple, for making clear that this is doable (and) a critically important piece of climate action," Wiener wrote.
Apple did not immediately respond to a request for comment.
The top U.S. securities regulator is yet to publish a long-awaited rule of its own on climate-related disclosures, and California senators are going ahead at the state level.
A separate bill under discussion would require companies operating in California, with $500 million in revenue, to report on climate-related financial risks such as whether they have budgeted for increased compliance and insurance costs.
Together, the bills could affect thousands of companies.
Groups including Adobe ADBE.O, Ikea and Microsoft stated their support for Wiener's bill in a letter addressed to California officials in August, according to a copy posted online by activist group Ceres.
In its letter to Wiener, Apple commends his bill's attempt to require companies to measure and report indirect emissions linked to their supply chains and end-users, known as Scope 3.
Noting that the legislation currently leaves open the date by which Scope 1 and Scope 2 disclosures - which relate to emissions from operations and those associated with a corporation's energy use - Apple suggests "leaving sufficient time for data collection, quality control, and third-party review".
(Reporting by Isla Binnie; Editing by Aurora Ellis)
((isla.binnie@thomsonreuters.com; Reuters Messaging: isla.binnie.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Isla Binnie NEW YORK, Sept 8 (Reuters) - Apple AAPL.O has endorsed a California Senate bill that would require large companies to report the levels of greenhouse gases they emit every year, the senator proposing the measure said,making it the latest major company to do so. "Throughout our environmental journey, we've emphasized the importance of measurement and reporting to help us understand our impact," said the letter, signed by Apple's director for state and local government affairs D. Michael Foulkes, a copy of which Senator Scott Wiener posted on Thursday to X, formerly known as Twitter. Wiener's bill would require public and private companies with annual revenue in excess of $1 billion who do business in traditionally climate-conscious California to disclose independently verified data on their planet-warming emissions.
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By Isla Binnie NEW YORK, Sept 8 (Reuters) - Apple AAPL.O has endorsed a California Senate bill that would require large companies to report the levels of greenhouse gases they emit every year, the senator proposing the measure said,making it the latest major company to do so. A separate bill under discussion would require companies operating in California, with $500 million in revenue, to report on climate-related financial risks such as whether they have budgeted for increased compliance and insurance costs. In its letter to Wiener, Apple commends his bill's attempt to require companies to measure and report indirect emissions linked to their supply chains and end-users, known as Scope 3.
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By Isla Binnie NEW YORK, Sept 8 (Reuters) - Apple AAPL.O has endorsed a California Senate bill that would require large companies to report the levels of greenhouse gases they emit every year, the senator proposing the measure said,making it the latest major company to do so. "Throughout our environmental journey, we've emphasized the importance of measurement and reporting to help us understand our impact," said the letter, signed by Apple's director for state and local government affairs D. Michael Foulkes, a copy of which Senator Scott Wiener posted on Thursday to X, formerly known as Twitter. In its letter to Wiener, Apple commends his bill's attempt to require companies to measure and report indirect emissions linked to their supply chains and end-users, known as Scope 3.
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By Isla Binnie NEW YORK, Sept 8 (Reuters) - Apple AAPL.O has endorsed a California Senate bill that would require large companies to report the levels of greenhouse gases they emit every year, the senator proposing the measure said,making it the latest major company to do so. "Throughout our environmental journey, we've emphasized the importance of measurement and reporting to help us understand our impact," said the letter, signed by Apple's director for state and local government affairs D. Michael Foulkes, a copy of which Senator Scott Wiener posted on Thursday to X, formerly known as Twitter. Wiener's bill would require public and private companies with annual revenue in excess of $1 billion who do business in traditionally climate-conscious California to disclose independently verified data on their planet-warming emissions.
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13854.0
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2023-09-08 00:00:00 UTC
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Wall Street sees small hit to Apple's revenue from China's iPhone curbs
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AAPL
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https://www.nasdaq.com/articles/wall-street-sees-small-hit-to-apples-revenue-from-chinas-iphone-curbs
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By Aniruddha Ghosh
Sept 8 (Reuters) - Apple Inc's AAPL.O revenue may take a small hit this year from China's recent move to curb the use of iPhones by state employees, Wall Street analysts said on Friday.
Apple shares tumbled 6.4% over the last two days, wiping $190 billion from its market capitalisation, following news Beijing ordered some central government employees in recent weeks to stop using iPhones at work.
Morgan Stanley analyst Erik W Woodring said Apple's share losses were "overdone" as he does not believe the curbs will lead to something broader. He added the worst case scenario was a 4% revenue hit and a 3% earning impact for the company.
"China is critical to Apple's success, but Apple is also critical to the Chinese economy. While the potential for a broad decoupling between Apple and China in this multipolar world clearly exists, we don't believe recent headlines are necessarily foreshadowing this 'worst case' scenario," Woodring said.
BofA Global Research estimated a headwind of around 5 million to 10 million iPhone units if China were to enforce the ban and added the impact would be higher if the phones get banned from being carried into official workplaces.
Beijing's move coincides with Apple's rival Huawei Technologies [RIC:RIC:HWT.UL] recently launching its Mate 60 Pro 5G smartphone. Analysts said U.S. sanctions on Huawei, in place since May 2019, hit the company's supply chain, helping Apple increase iPhone shipments to China and grab market share.
J.P.Morgan said China's restrictions will make it tougher for Apple to continue to gain market share in China. BofA estimated a $0.11 to $0.34 earnings per share hit to Apple if Huawei was able to gain market share from the iPhone maker.
(Reporting by Aniruddha Ghosh in Bengaluru; Editing by Krishna Chandra Eluri)
((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Aniruddha Ghosh Sept 8 (Reuters) - Apple Inc's AAPL.O revenue may take a small hit this year from China's recent move to curb the use of iPhones by state employees, Wall Street analysts said on Friday. Apple shares tumbled 6.4% over the last two days, wiping $190 billion from its market capitalisation, following news Beijing ordered some central government employees in recent weeks to stop using iPhones at work. Analysts said U.S. sanctions on Huawei, in place since May 2019, hit the company's supply chain, helping Apple increase iPhone shipments to China and grab market share.
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By Aniruddha Ghosh Sept 8 (Reuters) - Apple Inc's AAPL.O revenue may take a small hit this year from China's recent move to curb the use of iPhones by state employees, Wall Street analysts said on Friday. He added the worst case scenario was a 4% revenue hit and a 3% earning impact for the company. Beijing's move coincides with Apple's rival Huawei Technologies [RIC:RIC:HWT.UL] recently launching its Mate 60 Pro 5G smartphone.
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By Aniruddha Ghosh Sept 8 (Reuters) - Apple Inc's AAPL.O revenue may take a small hit this year from China's recent move to curb the use of iPhones by state employees, Wall Street analysts said on Friday. Analysts said U.S. sanctions on Huawei, in place since May 2019, hit the company's supply chain, helping Apple increase iPhone shipments to China and grab market share. BofA estimated a $0.11 to $0.34 earnings per share hit to Apple if Huawei was able to gain market share from the iPhone maker.
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By Aniruddha Ghosh Sept 8 (Reuters) - Apple Inc's AAPL.O revenue may take a small hit this year from China's recent move to curb the use of iPhones by state employees, Wall Street analysts said on Friday. Apple shares tumbled 6.4% over the last two days, wiping $190 billion from its market capitalisation, following news Beijing ordered some central government employees in recent weeks to stop using iPhones at work. He added the worst case scenario was a 4% revenue hit and a 3% earning impact for the company.
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13855.0
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2023-09-08 00:00:00 UTC
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S&P Futures Tick Lower as Interest Rate Uncertainty Weighs on Sentiment
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AAPL
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https://www.nasdaq.com/articles/sp-futures-tick-lower-as-interest-rate-uncertainty-weighs-on-sentiment
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nan
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nan
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September S&P 500 futures (ESU23) are trending down -0.24% this morning after the S&P 500 and Nasdaq closed in the red on Thursday as technology stocks dropped on concerns over the outlook for Apple, while the latest U.S. jobless claims data stoked worries about sticky inflation.
In Thursday’s trading session, the benchmark S&P 500 dropped to a 1-1/2 week low, and the tech-heavy Nasdaq 100 fell to a 1-week low. Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. Shares of Apple suppliers also lost ground, with Skyworks Solutions Inc (SWKS) and Qualcomm Incorporated (QCOM) plunging more than -7%. In addition, C3.ai Inc (AI) tumbled over -12% after the enterprise software company said it would not be profitable by the end of fiscal year 2024. At the same time, the blue-chip Dow outperformed the other two indices, buoyed by an over +3% gain in Intel Corporation (INTC) after Citi said the chip giant’s previously disclosed foundry customer could be a “whale.” Also, McDonald’s Corporation (MCD) rose more than +1% after Wells Fargo upgraded the stock to Overweight from Equal Weight.
The Labor Department’s report on Thursday showed claims for state unemployment benefits unexpectedly fell -13K to a 7-month low of 216K, stronger than expectations of 234K, which further supports the notion of the Federal Reserve holding rates higher for longer. Also, U.S. unit labor costs were revised higher to +2.2% q/q from +1.6% q/q in the second quarter. In addition, U.S. Q2 nonfarm productivity was revised lower to +3.5% q/q from +3.7% q/q.
“A solid round of employment data that reinforces the perception that the jobs market will remain resilient for the time being. From here, the market will remain wary of corporate-hedging related flows as they have been the biggest driver of price action in US rates thus far in September,” said Ian Lyngen, managing director and head of U.S. rates strategy at BMO Capital Markets.
New York Fed President John Williams said Thursday that U.S. monetary policy is “in a good place,” but policymakers will need to carefully analyze data to determine the appropriate course of action regarding interest rates. Also, Chicago Fed President Austan Goolsbee stated that the debate within the Fed is “very rapidly approaching the time when our argument is not going to be about how high should the rates go.”
Meanwhile, U.S. rate futures have priced in a 7.0% probability of a 25 basis point rate increase at the September FOMC meeting and a 41.7% chance of a 25 basis point rate hike at the November FOMC meeting.
Today, investors will likely focus on U.S. Wholesale Inventories data, which stood at -0.5% m/m in June. Economists foresee the July figure to be -0.1% m/m.
In the bond markets, United States 10-year rates are at 4.240%, down -0.54%.
The Euro Stoxx 50 futures are down -0.90% this morning, ceding earlier gains and heading for an eighth straight day of losses. Losses in construction and chemical stocks are leading the overall market lower. The federal statistics office said on Friday that German inflation fell slightly in August, confirming preliminary data. Meanwhile, Citigroup downgraded its 2023 economic growth projection for the euro area to 0.4%, anticipating the region’s economy to contract “gently” over the next three quarters. In corporate news, Computacenter Plc (CCC.LN) climbed over +6% after the IT reseller reported better-than-expected first-half results.
Germany’s CPI, France’s Industrial Production, and Spain’s Industrial Production data were released today.
The German August CPI has been reported at +0.3% m/m and +6.1% y/y, in line with expectations.
The French July Industrial Production stood at +0.8% m/m, stronger than expectations of +0.1% m/m.
The Spanish July Industrial Production came in at -1.8% y/y, stronger than expectations of -2.0% y/y.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.18%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.16%.
China’s Shanghai Composite today closed lower, extending losses following a series of disappointing economic readings this week, with the weakening yuan adding to the negative market sentiment. The offshore yuan weakened to the lowest level since December 2007 due to the widening services trade deficit and yield gap with other economies, impacting capital flows and trade. Meanwhile, property developers, energy, and media stocks retreated on Friday. On the positive side, semiconductor stocks outperformed due to the launch of Huawei’s Mate 60 Pro+ smartphone.
Japan’s Nikkei 225 Stock Index closed lower today as concerns over tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment, compounded by data revealing that Japan’s economy grew less than initially estimated in the second quarter. Revised government data showed on Friday that Japan’s economy expanded less than initially estimated in the second quarter, primarily due to a decline in capital expenditure. Separately, the Ministry of Finance said on Friday that the country’s current account surplus logged a record amount for July as the trade balance swung to surplus. Meanwhile, Japanese Finance Minister Shunichi Suzuki stated Friday that swift currency fluctuations were undesirable and that authorities wouldn’t rule out any options against excessive swings. Tech and industrial stocks were among the biggest losers on Friday, with chip-making equipment giant Tokyo Electron plunging over -3%. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -3.63% to 17.24.
The Japanese GDP has been reported at +1.2% q/q and +4.8% y/y in the second quarter, weaker than expectations of +1.5% q/q and +6.0% y/y.
The Japanese July Current Account n.s.a. stood at 2.772T, stronger than expectations of 2.295T.
Pre-Market U.S. Stock Movers
DocuSign Inc (DOCU) rose over +3% in pre-market trading after the electronic signature company posted upbeat Q2 results, lifted its full-year sales guidance, and boosted its share buyback program.
Adobe Systems Incorporated (ADBE) gained over +1% in pre-market trading after Mizuho upgraded the stock to Buy from Neutral.
Smartsheet Inc (SMAR) climbed more than +6% in pre-market trading after the company reported stronger-than-expected Q2 results and provided strong FY24 guidance.
Smith & Wesson Brands Inc (SWBI) soared over +9% in pre-market trading after the company posted upbeat Q1 results.
Spruce Biosciences Inc (SPRB) gained more than +8% in pre-market trading after Leerink upgraded the stock to Outperform from Market Perform.
First Solar Inc (FSLR) rose over +2% in pre-market trading after Deutsche Bank upgraded the stock to Buy from Hold.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Friday - September 8th
Kroger (KR), National Beverage (FIZZ), Hooker Furniture (HOFT), Rent the Runway (RENT).
More Stock Market News from Barchart
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5 Reasons to Buy Microsoft Stock Right Now
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. September S&P 500 futures (ESU23) are trending down -0.24% this morning after the S&P 500 and Nasdaq closed in the red on Thursday as technology stocks dropped on concerns over the outlook for Apple, while the latest U.S. jobless claims data stoked worries about sticky inflation. The Labor Department’s report on Thursday showed claims for state unemployment benefits unexpectedly fell -13K to a 7-month low of 216K, stronger than expectations of 234K, which further supports the notion of the Federal Reserve holding rates higher for longer.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. China’s Shanghai Composite Index (SHCOMP) closed down -0.18%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.16%. Japan’s Nikkei 225 Stock Index closed lower today as concerns over tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment, compounded by data revealing that Japan’s economy grew less than initially estimated in the second quarter.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. Japan’s Nikkei 225 Stock Index closed lower today as concerns over tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment, compounded by data revealing that Japan’s economy grew less than initially estimated in the second quarter. Pre-Market U.S. Stock Movers DocuSign Inc (DOCU) rose over +3% in pre-market trading after the electronic signature company posted upbeat Q2 results, lifted its full-year sales guidance, and boosted its share buyback program.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. The Labor Department’s report on Thursday showed claims for state unemployment benefits unexpectedly fell -13K to a 7-month low of 216K, stronger than expectations of 234K, which further supports the notion of the Federal Reserve holding rates higher for longer. In addition, U.S. Q2 nonfarm productivity was revised lower to +3.5% q/q from +3.7% q/q.
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13856.0
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2023-09-08 00:00:00 UTC
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Stock Market Crash Alert: The Tech Bubble Is Bursting
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AAPL
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https://www.nasdaq.com/articles/stock-market-crash-alert%3A-the-tech-bubble-is-bursting
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There is no new bull market. It’s a complete illusion. Small-cap stocks aren’t in a new bull market. Emerging markets aren’t in a new bull market. Europe isn’t in a new bull market. What’s happened this year is an illusion driven by AI mania and has not aligned with the historical pre-election melt-up path.
Technology relative to the S&P 500 is at the late 1999/early 2000 level, just before the Tech Bubble burst and a nasty bear market began.
The "Magnificent 7" will soon become atrocious.
A credit event is coming. pic.twitter.com/cIY8W7QQSc
— Michael A. Gayed, CFA (@leadlagreport) September 7, 2023
The echoes of the notorious dot-com bubble that shook the financial world in the late 1990s are resounding louder than ever in the current technology-driven stock market. The astronomical rise in the market values of tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA), coupled with the fervor around artificial intelligence, can easily result in a nasty burst.
The dot-com bubble of the late 1990s and early 2000s was marked by a frenzied rush into internet-based companies, fueled by a combination of widespread internet adoption, an abundance of venture capital, and a skyrocketing Nasdaq index.
Sound familiar?
How AI Could Be Leading Us to a Stock Market Crash
Fast forward to the present day, and we see a similar pattern unfolding. The AI-driven mania around technology stocks has led to an unprecedented increase in their market values as most other parts of the marketplace have languished. Nvidia, a major beneficiary of the AI frenzy, is the poster child. Other tech majors have also seen their stock prices soar.
The technology sector now makes up an unprecedented 28% of the total market value of the S&P 500. The concentration of market leadership within a few tech giants is eerily reminiscent of the dot-com bubble era. Bubbles form when a rising tide does not lift all boats. The concentration risk in what most people consider a “diversified” market is very real, and very dangerous. Thank tech stocks for that.
The weight of the biggest 5 stocks in the S&P 500 is at an all-time high.
You are being fooled by idiosyncratic risk.
WAKE UP. pic.twitter.com/2IHMUSQVBc
— Michael A. Gayed, CFA (@leadlagreport) September 7, 2023
Some experts believe that the rally can continue for a while longer. They argue that the current tech bubble is cheaper than the 2000 internet bubble. They also assert that today’s tech giants are more disciplined, have established market positions, and possess substantial data sets to exploit, unlike the dot-com companies. All of this is true. But it’s not an excuse to be reckless and play with fire.
As history has shown, market bubbles don’t last forever. They often result in vicious crashes, leading to significant losses for investors. The implications of a tech bubble burst could be far-reaching. Given the tech sector’s significant contribution to the total market value of the S&P 500, a crash in tech stocks could potentially trigger a broader market downturn. There is plenty of precedent for that.
The Bottom Line
The parallels with the dot-com bubble are hard to ignore. However, it is essential to note that not all bubbles burst disastrously. Some tech companies may weather the storm and emerge stronger, much like Amazon (NASDAQ:AMZN) and Cisco Systems (NASDAQ:CSCO) did post the dot-com crash.
Either way, if I’m right that the risk is very high for a credit event, tech stocks become the source of liquidity to fund margin calls by investors. And if that happens, the air will come out faster than most think is possible.
On the date of publication, Michael Gayed did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The Lead-Lag Report is provided by Lead-Lag Publishing, LLC. All opinions and views mentioned in this report constitute our judgments as of the date of writing and are subject to change at any time. Information within this material is not intended to be used as a primary basis for investment decisions and should also not be construed as advice meeting the particular investment needs of any individual investor. Trading signals produced by the Lead-Lag Report are independent of other services provided by Lead-Lag Publishing, LLC or its affiliates, and positioning of accounts under their management may differ. Please remember that investing involves risk, including loss of principal, and past performance may not be indicative of future results. Lead-Lag Publishing, LLC, its members, officers, directors and employees expressly disclaim all liability in respect to actions taken based on any or all of the information on this writing.
Michael A. Gayed is the Publisher of The Lead-Lag Report, and Portfolio Manager at Tidal Financial Group, an investment management company specializing in ETF-focused research, investment strategies and services designed for financial advisors, RIAs, family offices and investment managers.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The astronomical rise in the market values of tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA), coupled with the fervor around artificial intelligence, can easily result in a nasty burst. pic.twitter.com/cIY8W7QQSc — Michael A. Gayed, CFA (@leadlagreport) September 7, 2023 The echoes of the notorious dot-com bubble that shook the financial world in the late 1990s are resounding louder than ever in the current technology-driven stock market. The dot-com bubble of the late 1990s and early 2000s was marked by a frenzied rush into internet-based companies, fueled by a combination of widespread internet adoption, an abundance of venture capital, and a skyrocketing Nasdaq index.
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The astronomical rise in the market values of tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA), coupled with the fervor around artificial intelligence, can easily result in a nasty burst. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There is no new bull market. pic.twitter.com/cIY8W7QQSc — Michael A. Gayed, CFA (@leadlagreport) September 7, 2023 The echoes of the notorious dot-com bubble that shook the financial world in the late 1990s are resounding louder than ever in the current technology-driven stock market.
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The astronomical rise in the market values of tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA), coupled with the fervor around artificial intelligence, can easily result in a nasty burst. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There is no new bull market. Given the tech sector’s significant contribution to the total market value of the S&P 500, a crash in tech stocks could potentially trigger a broader market downturn.
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The astronomical rise in the market values of tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA), coupled with the fervor around artificial intelligence, can easily result in a nasty burst. The concentration of market leadership within a few tech giants is eerily reminiscent of the dot-com bubble era. Thank tech stocks for that.
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13857.0
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2023-09-08 00:00:00 UTC
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GLOBAL MARKETS-Stocks subdued after bruising week, dollar basks and yuan wilts
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-subdued-after-bruising-week-dollar-basks-and-yuan-wilts
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By Huw Jones
LONDON, Sept 8 (Reuters) - Stocks markets were subdued on Friday after prolonged pressure, with investors watching the contrasting fortunes of the dollar and yuan, and mulling central bank meetings and U.S. data on the horizon.
U.S. stock index futures 1YMcv1, EScv1, NQcv1 were little changed.
The tech sector was in focus after about $200 billion was wiped from Apple's AAPL.Omarket capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers.
Apple shares were flat in pre-market trading on Friday.
Oil pricesLCOc1, CLc1 hovered above $90 a barrel, helped by tighter supply.
The dollar=USD was set to clock up its best winning streak since 2014, bolstered by a resilient run of U.S. economic data. In contrast, the yuan CNY=CFXS fell to its weakest level since 2007 on worries about China's slowing economy.
Investors were focused in upcoming central bank meetings this month and next batch of U.S. data.
"Everything is geared towards the next couple of weeks, with European Central Bank, Federal Reserve and Bank of England meeting. I think they will all sit on their hands," said Mike Hewson, chief market strategist at CMC Markets.
Robust economic data in the United States this week have left some investors worried that even if the Fed leaves rates unchanged this month, they could remain high for longer than anticipated.
The U.S. Consumer Price Index reading for August is due on Sept. 13 ahead of the Fed's next meeting in the following week.
Stocks sought to stabilise after a week of easing, with the MSCI All Country stock index .MIWD00000PUS slightly weaker at 676.83 points, and down about 1.5% for the week so far, though still up nearly 12% for the year.
In Europe, the STOXX index .STOXX of 600 companies eased 0.3% and heading for a loss of about 1% for the week, and on course for its longest run of losses since November 2016.
Patrick Spencer, vice chair of equities at Baird, said investors were trying to guess at what pace the Fed could begin cutting interest rates next year.
"Maybe you are going to see slightly higher for longer rates and they may not come down as quickly next year, and that in itself will slow consumption and consumer confidence," Spencer said, adding that a U.S. government shutdown is also a worry.
YUAN AT 16-YEAR LOW
Dollar gains have pushed the Chinese yuanCNY=CFXS to a 16-year low and have also prompted a step up in rhetoric from Japanese policymakers growing uncomfortable with the yen's slide.
"Given challenges facing China, and more signs of a re-tightening of the U.S. jobs market, it is not surprising that the dollar is finding support, allowing the 'dollar juggernaut' to continue its rampaging run," analysts at ANZ Bank said in a note.
The yen JPY=EBS has found new 10-month lows and, at 147.45 per dollar is heading towards the vicinity of 150, where traders see high risks of authorities stepping in with support.
Japan's top currency diplomat Masato Kanda said on Wednesday that authorities will not rule out any option to clamp down on "speculative" moves, while chief cabinet secretary Hirokazu Matsuno said the government was watching with "urgency".
In currencies, the euro EUR=EBS is down 0.5% this week and traded little changed on the day at $1.07045
Benchmark 10-year U.S. Treasury yields US10YT=RR were trading at 4.2621%, while two-year yields US2YT=RR were trading at 4.9549%, also little changed on the day.
Brent crude LCOc1 prices are up this week, but gains on recently robust U.S. data have been tempered by softening indicators of demand in Europe and China.
Brent futures up 0.7% at $90.58 a barrel.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
ESTRfwdDec https://tmsnrt.rs/3PF6WTv
Fund flows: U.S. domiciled equities, bonds and money market funds Fund flows: U.S. domiciled equities, bonds and money market funds https://tmsnrt.rs/3KLA34K
(Additional reporting by Heekyong Yang in Seoul; Editing by Shri Navaratnam, Tomasz Janowski and David Evans)
((tom.westbrook@tr.com; +65 6973 8284;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The tech sector was in focus after about $200 billion was wiped from Apple's AAPL.Omarket capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers. By Huw Jones LONDON, Sept 8 (Reuters) - Stocks markets were subdued on Friday after prolonged pressure, with investors watching the contrasting fortunes of the dollar and yuan, and mulling central bank meetings and U.S. data on the horizon. "Given challenges facing China, and more signs of a re-tightening of the U.S. jobs market, it is not surprising that the dollar is finding support, allowing the 'dollar juggernaut' to continue its rampaging run," analysts at ANZ Bank said in a note.
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The tech sector was in focus after about $200 billion was wiped from Apple's AAPL.Omarket capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers. By Huw Jones LONDON, Sept 8 (Reuters) - Stocks markets were subdued on Friday after prolonged pressure, with investors watching the contrasting fortunes of the dollar and yuan, and mulling central bank meetings and U.S. data on the horizon. In currencies, the euro EUR=EBS is down 0.5% this week and traded little changed on the day at $1.07045 Benchmark 10-year U.S. Treasury yields US10YT=RR were trading at 4.2621%, while two-year yields US2YT=RR were trading at 4.9549%, also little changed on the day.
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The tech sector was in focus after about $200 billion was wiped from Apple's AAPL.Omarket capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers. By Huw Jones LONDON, Sept 8 (Reuters) - Stocks markets were subdued on Friday after prolonged pressure, with investors watching the contrasting fortunes of the dollar and yuan, and mulling central bank meetings and U.S. data on the horizon. In currencies, the euro EUR=EBS is down 0.5% this week and traded little changed on the day at $1.07045 Benchmark 10-year U.S. Treasury yields US10YT=RR were trading at 4.2621%, while two-year yields US2YT=RR were trading at 4.9549%, also little changed on the day.
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The tech sector was in focus after about $200 billion was wiped from Apple's AAPL.Omarket capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers. U.S. stock index futures 1YMcv1, EScv1, NQcv1 were little changed. Robust economic data in the United States this week have left some investors worried that even if the Fed leaves rates unchanged this month, they could remain high for longer than anticipated.
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13858.0
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2023-09-08 00:00:00 UTC
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3 Dividend-Paying Tech Stocks to Buy in September
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AAPL
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https://www.nasdaq.com/articles/3-dividend-paying-tech-stocks-to-buy-in-september-1
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nan
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When many investors think of tech stocks, they picture growth stocks aggressively reinvesting profits to focus on growing as much as possible, as fast as possible. While that may be true for a lot of tech stocks, it's just one side of the coin. Plenty of tech stocks offer above-average (and sometimes ultra-high) dividend yields.
Here are three dividend-paying tech stocks investors should consider this month.
1. Verizon Communications
Verizon Communications (NYSE: VZ) is one of the big three telecom companies in the U.S., trailing only AT&T in market share. Unfortunately, things haven't been the best for Verizon investors in the past few years, with the stock down over 15% in the past 12 months and 35% in the past five years.
Luckily, potential stock price growth isn't the selling point for Verizon; it's the dividend. Verizon has one of the highest dividend yields in the S&P 500. Its current quarterly payout is $0.65 per share with a trailing-12-month (TTM) yield of around 7.5%.
Telecom isn't an industry known for high growth in its total addressable market, but modest growth is usually attained by the quality of services since the barrier to moving between providers isn't high. Switching your phone service is much easier than switching banks or health insurance, for example.
One thing that should help Verizon's growth is the new bandwidth for its 5G services. Four months ahead of schedule, Verizon was awarded the much-needed spectrum space that determines how many devices can connect to 5G, which should speed up its 5G rollout and adoption.
Despite its stock price struggles, Verizon is well positioned in an indispensable industry in everyday U.S. life. Further, the company has consecutively increased its dividend for 17 years through tough markets, showing it could likely continue that pattern. Verizon's consistent and high dividend yield could give investors a margin of safety as the company navigates a tough landscape and works on ways to maintain customer retention.
2. Cisco Systems
Despite not getting the same attention as big tech giants like Apple and Microsoft, Cisco Systems (NASDAQ: CSCO) plays a comparably important role in the technology ecosystem. Cisco's bread and butter is its connectivity and networking equipment that powers everything from large corporations to government institutions to data centers and more.
Cisco finished its fiscal year strong, with Q4 (ended July 29) revenue of $15.2 billion, up 16% year over year. It capped off a good year where the company's year-over-year revenue growth was the highest it's been in quite some time.
Data by YCharts
Investors should be encouraged by the company's deliberate steps to be less reliant on its hardware and embrace software offerings like cybersecurity. Software and subscription-based services give a company more reliable cash flow. In Q4, Cisco had $6 billion in operating income, up 62% year over year.
Cisco's position in network equipment gives it a competitive edge and foundation, but its focus on software should expand its growth potential for the foreseeable future.
It also helps that the company has increased its annual dividend every year since it started paying it in 2011. Its roughly 2.7% TTM dividend yield is a long shot from Verizon's yield, but it's still considerably higher than the S&P 500 average.
3. Texas Instruments
If you're like me, your first introduction to Texas Instruments (NASDAQ: TXN) was through grade school calculators. However, the company has expanded far beyond that, producing semiconductors, data converters, and integrated circuits used in many of today's automotive and industrial systems.
Texas Instruments has faced some troubles recently (its Q2 2023 revenue was down 13% year over year), but that hasn't come as a complete surprise, considering broader economic conditions and the cyclical nature of its business.
Despite near-term troubles, the company seems to be making moves that should pay off in the long term. The company has steadily increased its research and development spending and focused on improving its manufacturing facilities to improve efficiency and output.
Investing in R&D and operational improvements seems to be the right move at a time when the CHIPS and Science Act -- which provided roughly $280 billion in funding to boost domestic semiconductor research and manufacturing -- Texas Instruments is set to get a portion of that which could give a boost to its financials.
Texas Instruments has increased its annual dividend for 19 consecutive years with a 25% compound annual growth rate. Its quarterly dividend is $1.24, with a TTM dividend yield of around 2.9%. There also shouldn't be any worries about its ability to keep growing its dividend, as Texas Instruments has more than enough free cash flow to cover its obligations.
10 stocks we like better than Verizon Communications
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Verizon Communications wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of September 5, 2023
Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple, Cisco Systems, Microsoft, and Texas Instruments. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Four months ahead of schedule, Verizon was awarded the much-needed spectrum space that determines how many devices can connect to 5G, which should speed up its 5G rollout and adoption. Verizon's consistent and high dividend yield could give investors a margin of safety as the company navigates a tough landscape and works on ways to maintain customer retention. Cisco's position in network equipment gives it a competitive edge and foundation, but its focus on software should expand its growth potential for the foreseeable future.
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Investing in R&D and operational improvements seems to be the right move at a time when the CHIPS and Science Act -- which provided roughly $280 billion in funding to boost domestic semiconductor research and manufacturing -- Texas Instruments is set to get a portion of that which could give a boost to its financials. Texas Instruments has increased its annual dividend for 19 consecutive years with a 25% compound annual growth rate. The Motley Fool has positions in and recommends Apple, Cisco Systems, Microsoft, and Texas Instruments.
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Unfortunately, things haven't been the best for Verizon investors in the past few years, with the stock down over 15% in the past 12 months and 35% in the past five years. Luckily, potential stock price growth isn't the selling point for Verizon; it's the dividend. 10 stocks we like better than Verizon Communications When our analyst team has a stock tip, it can pay to listen.
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Here are three dividend-paying tech stocks investors should consider this month. Luckily, potential stock price growth isn't the selling point for Verizon; it's the dividend. The Motley Fool has positions in and recommends Apple, Cisco Systems, Microsoft, and Texas Instruments.
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13859.0
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2023-09-08 00:00:00 UTC
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EXPLAINER-What is in Huawei's new smartphone challenger to Apple?
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AAPL
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https://www.nasdaq.com/articles/explainer-what-is-in-huaweis-new-smartphone-challenger-to-apple
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nan
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nan
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By Yelin Mo, Brenda Goh
BEIJING/SHANGHAI, Sept 8 (Reuters) - A new series of smartphones launched by China's Huawei Technologies HWT.UL has drawn global attention for containing technology that indicates the company has managed to overcome U.S. sanctions and could come back as a rival to AppleAAPL.O
In late August, the company unveiled the Mate 60 and Mate 60 Pro, and on Friday launched two more smartphones, the Mate X5 which is a new version of its foldable phones, and the Mate 60 Pro+. The Mate 60 is priced from 5,999 yuan ($817.70), the same as Apple's iPhone 14 in China.
Here are some key things to know about Huawei's new phones, their suppliers, and what they could mean for the world's largest smartphone market:
WHAT IS THE MATE 60 SERIES CAPABLE OF?
Huawei has mainly advertised the smartphones' ability to support satellite communications which allow users to place calls or send messages even in areas where there are no mobile signals or internet, such as on mountains or at sea.
It has not disclosed details of the chips used, but analysis firm TechInsights has found that the phone is powered by a new Kirin 9000s chip that was made in China by Semiconductor Manufacturing International Corp (SMIC) 0981.HK.
Speed tests shared by buyers on Chinese social media have suggested that the Mate 60 Pro is capable of download speeds exceeding those of top line 5G phones.
Chinese buyers comparing the phones to Apple's latest iPhone 14 have posted reviews online saying they have comparable specifications like storage and memory. Huawei's launch also comes days before Apple is expected to launch its new iPhone 15 on Sept. 12.
WHO ARE THE MATE 60'S SUPPLIERS?
Huawei has not officially named the suppliers for the phones' components, though apart from SMIC, TechInsights also said it found South Korea's SK Hynix's 000660.KS DRAM and NAND components in the phone.
SK Hynix, which said it stopped doing business with Huawei since the United States introduced restrictions on the firm in 2019, has said it is investigating.
The Mate 60 Pro contains more Chinese-made chip components than previous models, TechInsights also said.
Lists of possible Chinese suppliers have been widely circulated online, with shares of companies touted as possible candidates soaring on the speculation.
Most of these are existing suppliers to Huawei. Shares in Dongguan Chitwing Technology Co. Ltd 002241.SZ, which makes molds, for instance rose by the daily upward limit of 10% in the days after Huawei's launch. It did not respond to a Reuters' request for comment.
Suzhou-based display maker Visionox Technology 002387.SZ, whose shares have risen by 15% since the new smartphones were launched on Aug. 29, told Reuters it was a supplier for the new Mate 60 series.
WHAT COULD IT MEAN FOR APPLE IN CHINA'S SMARTPHONE MARKET?
Huawei was once the world's largest smartphone firm by sales but saw its market share steadily slump after the United States cut its access to chip-making tools essential for producing the most advanced handset models. The company was left only able to sell limited batches of 5G models using stockpiled chips.
Its market share in China, the world's largest smartphone market, has fallen to 11% so far this year compared to 27% in 2020, in part also due to its move to sell its budget brand Honor in what it described then as a bid to ensure its survival.
The U.S. restrictions left Apple as the main maker of premium smartphones in China. Over the same period, Apple's market share in China rose to 19% from 11%，according to data from research firm Counterpoint.
Analysts say the Mate 60 might mark Huawei's comeback as a rival, with sales helped by patriotic fervor as state media and internet users cheer the launch as a blow against the United States amid rising tensions between Washington and Beijing.
Ming-Chi Kuo, an analyst with TF International Securities, said he expects the Mate 60 Pro to ship between 5.5 to 6 million units for the second half of this year, up 20% from previously planned volumes.
And cumulative shipments of Mate 60 Pro could reach at least 12 million units 12 months after launch, according to Kuo.
($1 = 7.3364 Chinese yuan renminbi)
(Reporting by Yelin Mo and Brenda Goh; Editing by Emelia Sithole-Matarise)
((yelin.mo@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Yelin Mo, Brenda Goh BEIJING/SHANGHAI, Sept 8 (Reuters) - A new series of smartphones launched by China's Huawei Technologies HWT.UL has drawn global attention for containing technology that indicates the company has managed to overcome U.S. sanctions and could come back as a rival to AppleAAPL.O In late August, the company unveiled the Mate 60 and Mate 60 Pro, and on Friday launched two more smartphones, the Mate X5 which is a new version of its foldable phones, and the Mate 60 Pro+. Huawei has mainly advertised the smartphones' ability to support satellite communications which allow users to place calls or send messages even in areas where there are no mobile signals or internet, such as on mountains or at sea. Huawei was once the world's largest smartphone firm by sales but saw its market share steadily slump after the United States cut its access to chip-making tools essential for producing the most advanced handset models.
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By Yelin Mo, Brenda Goh BEIJING/SHANGHAI, Sept 8 (Reuters) - A new series of smartphones launched by China's Huawei Technologies HWT.UL has drawn global attention for containing technology that indicates the company has managed to overcome U.S. sanctions and could come back as a rival to AppleAAPL.O In late August, the company unveiled the Mate 60 and Mate 60 Pro, and on Friday launched two more smartphones, the Mate X5 which is a new version of its foldable phones, and the Mate 60 Pro+. The Mate 60 Pro contains more Chinese-made chip components than previous models, TechInsights also said. Its market share in China, the world's largest smartphone market, has fallen to 11% so far this year compared to 27% in 2020, in part also due to its move to sell its budget brand Honor in what it described then as a bid to ensure its survival.
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By Yelin Mo, Brenda Goh BEIJING/SHANGHAI, Sept 8 (Reuters) - A new series of smartphones launched by China's Huawei Technologies HWT.UL has drawn global attention for containing technology that indicates the company has managed to overcome U.S. sanctions and could come back as a rival to AppleAAPL.O In late August, the company unveiled the Mate 60 and Mate 60 Pro, and on Friday launched two more smartphones, the Mate X5 which is a new version of its foldable phones, and the Mate 60 Pro+. Huawei was once the world's largest smartphone firm by sales but saw its market share steadily slump after the United States cut its access to chip-making tools essential for producing the most advanced handset models. Analysts say the Mate 60 might mark Huawei's comeback as a rival, with sales helped by patriotic fervor as state media and internet users cheer the launch as a blow against the United States amid rising tensions between Washington and Beijing.
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By Yelin Mo, Brenda Goh BEIJING/SHANGHAI, Sept 8 (Reuters) - A new series of smartphones launched by China's Huawei Technologies HWT.UL has drawn global attention for containing technology that indicates the company has managed to overcome U.S. sanctions and could come back as a rival to AppleAAPL.O In late August, the company unveiled the Mate 60 and Mate 60 Pro, and on Friday launched two more smartphones, the Mate X5 which is a new version of its foldable phones, and the Mate 60 Pro+. Chinese buyers comparing the phones to Apple's latest iPhone 14 have posted reviews online saying they have comparable specifications like storage and memory. Huawei's launch also comes days before Apple is expected to launch its new iPhone 15 on Sept. 12.
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13860.0
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2023-09-08 00:00:00 UTC
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US STOCKS-Futures subdued in cautious trading ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-subdued-in-cautious-trading-ahead-of-inflation-data
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 8 (Reuters) - U.S. stock index futures were subdued on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer.
Stronger-than-expected services activity data and a fall in weekly jobless claims have dented investor sentiment, dragging the S&P 500 .SPX and Nasdaq .IXIC 1.4% and 2% lower so far this week, respectively.
The Consumer Price Index reading for August is due on Sept. 13, while the Federal Reserve's policy decision is scheduled for Sept. 20.
"While our base case is for no further hikes in this cycle, we expect economic uncertainty to keep equity markets volatile and range-bound in the coming months," said Mark Haefele, chief investment officer at UBS Global Wealth Management.
Traders see a 93% chance of interest rates staying at current levels in September, while pricing in a 55.4% chance for a pause in rate hikes in the November meeting, according to CME FedWatch Tool.
Shares of Apple AAPL.O were flat in premarket trading after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces.
Another report on Friday said China was expanding iPhone restrictions to local governments and state-owned companies.
Wall Street analysts see a small hit to Apple's revenue this year from the curbs, with Morgan Stanley saying the worst case scenario was a 4% drop.
At 7:07 a.m. ET, Dow e-minis 1YMcv1 were down 30 points, or 0.09%, S&P 500 e-minis EScv1 were down 4.25 points, or 0.1%, and Nasdaq 100 e-minis NQcv1 were down 22 points, or 0.14%.
Investors also digested mixed commentary from several Fed speakers on Thursday.
New York Fed President John Williams kept his options open over future interest rate policy and Dallas Fed President Lorie Logan said while it "could be appropriate" to skip a rate hike in the upcoming meeting, more policy tightening might be needed.
San Francisco Federal Reserve Bank President Mary Daly is due to speak later in the day.
Among individual stocks, Faraday Future Intelligent Electric FFIE.O jumped 9.0% before the bell. The electric-vehicle maker said there were efforts to spread misinformation about the company and manipulate market sentiment.
Adobe ADBE.O rose 1.8% after Mizuho upgraded the software firm to "buy" from "neutral".
DocuSignDOCU.O added 3.1% as the e-Signature product provider beat second-quarter results estimates and raised its annual revenue forecast.
GameStopGME.N fell 2.3% on a report that the U.S. Securities and Exchange Commission was investigating the videogame retailer's chairman, Ryan Cohen.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com; amruta.khandekar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O were flat in premarket trading after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - U.S. stock index futures were subdued on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer. "While our base case is for no further hikes in this cycle, we expect economic uncertainty to keep equity markets volatile and range-bound in the coming months," said Mark Haefele, chief investment officer at UBS Global Wealth Management.
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Shares of Apple AAPL.O were flat in premarket trading after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - U.S. stock index futures were subdued on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer. The Consumer Price Index reading for August is due on Sept. 13, while the Federal Reserve's policy decision is scheduled for Sept. 20.
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Shares of Apple AAPL.O were flat in premarket trading after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - U.S. stock index futures were subdued on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer. New York Fed President John Williams kept his options open over future interest rate policy and Dallas Fed President Lorie Logan said while it "could be appropriate" to skip a rate hike in the upcoming meeting, more policy tightening might be needed.
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Shares of Apple AAPL.O were flat in premarket trading after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - U.S. stock index futures were subdued on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer. The Consumer Price Index reading for August is due on Sept. 13, while the Federal Reserve's policy decision is scheduled for Sept. 20.
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13861.0
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2023-09-08 00:00:00 UTC
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Cathie Wood's Buying These 3 Stocks Hand Over Fist
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https://www.nasdaq.com/articles/cathie-woods-buying-these-3-stocks-hand-over-fist
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Would you like to improve your stock-picking chops by learning from the pros? You could wait for the next round of disclosures that institutional investors are required to make four times per year, or you could look at what Cathie Wood and the family of exchange-traded funds she manages for Ark Invest are buying from day to day.
To foster transparency, Ark Invest discloses its trading activity at the end of each trading day. Recently Wood scooped up more shares of Beam Therapeutics (NASDAQ: BEAM), Pacific Biosciences of California (NASDAQ: PACB), and Spotify (NYSE: SPOT).
Image source: Getty Images.
Wood already had significant positions in these stocks before buying more last week. Let's take a closer look at her recent purchases to see why she's been buying them hand over fist.
Beam Therapeutics
Since the beginning of 2022, Wood has snapped up shares of Beam Therapeutics for the flagship Ark Innovation ETF and the Ark Genomic Revolution ETF more than a dozen times. On Tuesday and Wednesday this week, Ark Invest added more shares to both ETFs.
Beam is advancing a suite of gene editing and delivery technologies with a twist. Its business is anchored by proprietary base editing technology. In a nutshell, base editing is like using a pencil and eraser to alter DNA while CRISPR-based methods are more like using scissors and glue.
We'll soon have multiple chances to see if Beam's base editing platform is a worthwhile approach to new drug development. In August, the company began treating patients in a phase 1 trial with BEAM-201. This cellular therapy is made from the immune cells of healthy donors, which could be a huge differentiating factor if it reaches commercialization.
Beam doesn't intend to tackle high cholesterol right away, so it licensed some technology to Verve Therapeutics. The new drug candidate Verve is developing with technology licensed from Beam, VERVE-101 is an in vivo therapy. So far, approved gene therapies do their gene editing outside of the body, so this could be a very big deal if it works.
VERVE-101 is in a phase 1 study with patients genetically predisposed to have high cholesterol, and top-line results are due by the end of the year. If it safely reduces cholesterol, shares of Verve and Beam could soar.
Pacific Biosciences of California
Over the past couple of trading sessions, Wood bought nearly 800,000 shares of Pacific Biosciences of California, or PacBio as the genomic sequencing company is more commonly known. Wood is no doubt encouraged by soaring sales of Revio, PacBio's latest long-read DNA sequencing machine.
PacBio reported second-quarter sales that rose 34% year over year. That's much faster than Illumina, the 800-pound gorilla of the genetic sequencing industry. Illumina reported second-quarter core revenue that flatlined year over year and was only 3% higher than the company reported two years earlier.
PacBio's business is booming, but the $47.6 million in total revenue that it reported during the second quarter is a drop in the bucket compared to Illumina, which recorded $1.76 billion in total revenue during the same period. With heaps of room to grow and strong uptake of Revio, this stock could be at the beginning of a long upward climb.
Spotify
At least twice this week, Wood added shares of Spotify to the Ark Next Generation Internet ETF portfolio. She's likely excited by soaring subscriber metrics and accelerating revenue growth.
The number of monthly active users on Spotify in the second quarter soared 27% year over year to 551 million. There were 220 million paid subscribers, which was 17% more than the company reported a year earlier.
Despite a general pullback from advertisers facing economic uncertainty, music-related ad revenue rose by a mid-single-digit percentage. The company's Spotify Audience Network is bringing in heaps more podcast ad revenue, too. Podcast ad sales surged more than 30% year over year in the second quarter.
Spotify's Audience Network lets advertisers place podcast ads based on their target audience -- and that target audience is enormous. Surprisingly, Spotify's biggest competitor, Apple Music, still makes users leave its app to listen to their favorite podcasts. A first-mover advantage plus heaps of original content mean investors can expect a lot more high-margin podcast revenue from Spotify in the quarters ahead.
10 stocks we like better than Beam Therapeutics
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Cory Renauer has positions in Spotify Technology. The Motley Fool has positions in and recommends Apple, Beam Therapeutics, Pacific Biosciences Of California, and Spotify Technology. The Motley Fool recommends Illumina. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite a general pullback from advertisers facing economic uncertainty, music-related ad revenue rose by a mid-single-digit percentage. Surprisingly, Spotify's biggest competitor, Apple Music, still makes users leave its app to listen to their favorite podcasts. A first-mover advantage plus heaps of original content mean investors can expect a lot more high-margin podcast revenue from Spotify in the quarters ahead.
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Recently Wood scooped up more shares of Beam Therapeutics (NASDAQ: BEAM), Pacific Biosciences of California (NASDAQ: PACB), and Spotify (NYSE: SPOT). Spotify's Audience Network lets advertisers place podcast ads based on their target audience -- and that target audience is enormous. The Motley Fool has positions in and recommends Apple, Beam Therapeutics, Pacific Biosciences Of California, and Spotify Technology.
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Recently Wood scooped up more shares of Beam Therapeutics (NASDAQ: BEAM), Pacific Biosciences of California (NASDAQ: PACB), and Spotify (NYSE: SPOT). Beam Therapeutics Since the beginning of 2022, Wood has snapped up shares of Beam Therapeutics for the flagship Ark Innovation ETF and the Ark Genomic Revolution ETF more than a dozen times. Illumina reported second-quarter core revenue that flatlined year over year and was only 3% higher than the company reported two years earlier.
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The company's Spotify Audience Network is bringing in heaps more podcast ad revenue, too. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Apple, Beam Therapeutics, Pacific Biosciences Of California, and Spotify Technology.
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13862.0
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2023-09-08 00:00:00 UTC
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FOREX-US dollar flat, but on track for eight straight weeks of gains; yuan sinks
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AAPL
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https://www.nasdaq.com/articles/forex-us-dollar-flat-but-on-track-for-eight-straight-weeks-of-gains-yuan-sinks
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nan
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nan
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By Gertrude Chavez-Dreyfuss
NEW YORK, Sept 8 (Reuters) - The dollar was little changed on Friday, consolidating gains amassed during the week on better-than-expected U.S. economic data, even as the currency's underlying strong trend remained amid stable consumer and labor markets, which have kept the prospect of another rate increase on the table this year.
Despite Friday's pullback, the dollar index was headed for eight straight weeks of gains, the longest such streak since 2014.
"This week the market has been a little more nervy than usual on a number of fronts and that has lent to dollar strength," said Amo Sahota, director of FX at consulting firm Klarity FX in San Francisco.
He cited the continued escalation of the spat between the U.S. and China over the latter's iPhone restrictions, which have put Apple AAPL.O in the spotlight.
There was also the narrative, he noted, that the Federal Reserve will keep interest rates higher for longer as the battle for inflation is still playing out.
"There's a lot of reasoning to ask whether dollar strength is going too far." Sahota said. "That may be, but in an environment where things could get nervy, the dollar always looks attractive," because of its yield advantage over other currencies due to the spate of Fed rate increases.
China's onshore yuan, on the other hand, ended its domestic session at its weakest since 2007, as it battles capital outflow pressures and a widening yield gap with major economies.
In afternoon trading, the dollar index =USD, which measures the greenback against six major peers, was flat at 105.05. It hit a six-month peak of 105.15 the previous session. The index so far this week was up 0.7%.
That said, Vassili Serebriakov, FX strategist, at UBS in New York, said while eight weeks are an unusually long stretch of dollar strength, the currency's gains are getting smaller every week.
"The market is quite long dollars already and the incremental upside has been small. So I think the market is having a hard time pushing the dollar significantly higher."
The euro EUR=EBS, the largest component in the dollar index, was on track for eight straight weeks of losses and down 0.7% on the week. It was last flat on the day at $1.0699, having fallen to a three-month low on Thursday.
Data out this week showed the U.S. services sector unexpectedly gained steam in August while jobless claims last week hit their lowest since February. In contrast, industrial production in Germany, Europe's largest economy, fell by slightly more than expected in July.
The chances of a Fed rate hike at the November meeting was still at more than 40%, although the market expects the U.S. central bank to hold interest rates steady later this month.
Sterling GBP=D3 moved away from Thursday's three-month low and last bought at $1.2459, down 0.1%, and set to clock a weekly loss of 1%.
The Canadian dollar firmed against the greenback after Canada created 39,900 jobs last month, compared with a median forecast for a gain of 15,000. The unemployment rate remained at 5.5%. The U.S. dollar was last down 0.3% versus the Canadian currency at C$1.3642 CAD=D3.
IN THE DOLDRUMS
The onshore Chinese yuan CNY=CFXS touched its weakest level against the dollar since December 2007 at 7.3510, while its offshore counterpart CNH=D3 sank to a 10-month low of 7.3665 per dollar.
China's currency has depreciated steadily since February as the faltering post-pandemic economic recovery and widening yield gap with other economies, particularly the United States, affected capital flows and trade.
The yuan's rapid decline has prompted authorities to step in and slow the pace of its depreciation.
The struggling yen JPY=EBS was also in focus. The Japanese unit was last down 0.3% at 147.6 per dollar and on the weaker side of the key 145-level that prompted Japan intervention last year.
Japanese Finance Minister Shunichi Suzuki said on Friday rapid currency moves were undesirable and authorities wouldn't rule out any options against excessive swings, in a fresh warning to investors trying to sell the yen.
========================================================
Currency bid prices at 2:54PM (1854 GMT)
Description
RIC
Last
U.S. Close Previous Session
Pct Change
YTD Pct Change
High Bid
Low Bid
Dollar index
=USD
105.0500
105.0500
+0.01%
1.507%
+105.0900
+104.6600
Euro/Dollar
EUR=EBS
$1.0699
$1.0696
+0.03%
-0.15%
+$1.0744
+$1.0694
Dollar/Yen
JPY=EBS
147.8050
147.2950
+0.35%
+12.74%
+147.8100
+146.6000
Euro/Yen
EURJPY=
158.13
157.55
+0.37%
+12.72%
+158.3900
+157.0100
Dollar/Swiss
CHF=EBS
0.8934
0.8929
+0.08%
-3.36%
+0.8936
+0.8895
Sterling/Dollar
GBP=D3
$1.2455
$1.2475
-0.16%
+2.99%
+$1.2514
+$1.2453
Dollar/Canadian
CAD=D3
1.3641
1.3686
-0.31%
+0.69%
+1.3689
+1.3610
Aussie/Dollar
AUD=D3
$0.6373
$0.6377
-0.09%
-6.54%
+$0.6414
+$0.6368
Euro/Swiss
EURCHF=
0.9557
0.9548
+0.09%
-3.42%
+0.9564
+0.9536
Euro/Sterling
EURGBP=
0.8588
0.8574
+0.16%
-2.89%
+0.8592
+0.8569
NZ Dollar/Dollar
NZD=D3
$0.5885
$0.5876
+0.22%
-7.25%
+$0.5918
+$0.5874
Dollar/Norway
NOK=D3
10.6760
10.7070
-0.29%
+8.78%
+10.7080
+10.6380
Euro/Norway
EURNOK=
11.4258
11.4524
-0.23%
+8.88%
+11.4646
+11.4059
Dollar/Sweden
SEK=
11.1248
11.1397
-0.11%
+6.89%
+11.1506
+11.0619
Euro/Sweden
EURSEK=
11.9038
11.9165
-0.11%
+6.76%
+11.9305
+11.8787
World FX rates https://tmsnrt.rs/2RBWI5E
DXY 080923 https://tmsnrt.rs/3sHgRyF
DXY v2 https://tmsnrt.rs/45Hto3P
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Samuel Indyk in London and Rae Wee in Singapore; Editing by Shri Navaratnam, Gerry Doyle, Angus MacSwan, Mark Heinrich and Diane Craft)
((gertrude.chavez@thomsonreuters.com; 646-301-4124; Reuters Messaging: gertrude.chavez.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
He cited the continued escalation of the spat between the U.S. and China over the latter's iPhone restrictions, which have put Apple AAPL.O in the spotlight. By Gertrude Chavez-Dreyfuss NEW YORK, Sept 8 (Reuters) - The dollar was little changed on Friday, consolidating gains amassed during the week on better-than-expected U.S. economic data, even as the currency's underlying strong trend remained amid stable consumer and labor markets, which have kept the prospect of another rate increase on the table this year. China's currency has depreciated steadily since February as the faltering post-pandemic economic recovery and widening yield gap with other economies, particularly the United States, affected capital flows and trade.
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He cited the continued escalation of the spat between the U.S. and China over the latter's iPhone restrictions, which have put Apple AAPL.O in the spotlight. By Gertrude Chavez-Dreyfuss NEW YORK, Sept 8 (Reuters) - The dollar was little changed on Friday, consolidating gains amassed during the week on better-than-expected U.S. economic data, even as the currency's underlying strong trend remained amid stable consumer and labor markets, which have kept the prospect of another rate increase on the table this year. Last U.S. Close Previous Session Pct Change YTD Pct Change High Bid Low Bid Dollar index
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He cited the continued escalation of the spat between the U.S. and China over the latter's iPhone restrictions, which have put Apple AAPL.O in the spotlight. By Gertrude Chavez-Dreyfuss NEW YORK, Sept 8 (Reuters) - The dollar was little changed on Friday, consolidating gains amassed during the week on better-than-expected U.S. economic data, even as the currency's underlying strong trend remained amid stable consumer and labor markets, which have kept the prospect of another rate increase on the table this year. That said, Vassili Serebriakov, FX strategist, at UBS in New York, said while eight weeks are an unusually long stretch of dollar strength, the currency's gains are getting smaller every week.
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He cited the continued escalation of the spat between the U.S. and China over the latter's iPhone restrictions, which have put Apple AAPL.O in the spotlight. China's onshore yuan, on the other hand, ended its domestic session at its weakest since 2007, as it battles capital outflow pressures and a widening yield gap with major economies. The index so far this week was up 0.7%.
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13863.0
|
2023-09-08 00:00:00 UTC
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Pre-Market Most Active for Sep 8, 2023 : SQQQ, TQQQ, TSLA, AAPL, TSLL, QQQ, NIO, PLTR, AMC, IONQ, PHG, KR
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-sep-8-2023-%3A-sqqq-tqqq-tsla-aapl-tsll-qqq-nio-pltr-amc-ionq-phg
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is up 15.3 to 15,273.82. The total Pre-Market volume is currently 34,804,588 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is +0.06 at $18.67, with 2,370,681 shares traded. This represents a 13.98% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is -0.15 at $40.23, with 1,623,474 shares traded. This represents a 149.88% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is -0.73 at $250.76, with 773,294 shares traded. TSLA's current last sale is 95.53% of the target price of $262.5.
Apple Inc. (AAPL) is -0.36 at $177.20, with 766,891 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Direxion Daily TSLA Bull 1.5X Shares (TSLL) is -0.07 at $15.76, with 539,889 shares traded. This represents a 239.66% increase from its 52 Week Low.
Invesco QQQ Trust, Series 1 (QQQ) is -0.26 at $371.80, with 459,611 shares traded. This represents a 46.23% increase from its 52 Week Low.
NIO Inc. (NIO) is +0.01 at $10.09, with 383,272 shares traded. NIO's current last sale is 79.14% of the target price of $12.75.
Palantir Technologies Inc. (PLTR) is -0.061 at $15.15, with 340,966 shares traded. PLTR's current last sale is 121.19% of the target price of $12.5.
AMC Entertainment Holdings, Inc. (AMC) is -0.17 at $7.95, with 298,610 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $-0.48. , following a 52-week high recorded in prior regular session.
IonQ, Inc. (IONQ) is -0.0217 at $17.47, with 287,135 shares traded. IONQ's current last sale is 97.05% of the target price of $18.
Koninklijke Philips N.V. (PHG) is -0.54 at $20.79, with 274,356 shares traded. PHG's current last sale is 94.5% of the target price of $22.
Kroger Company (The) (KR) is -0.73 at $44.80, with 260,299 shares traded. Smarter Analyst Reports: Kroger Gains 12.6% on Strong Q3 Results, Raises Outlook
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.36 at $177.20, with 766,891 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.36 at $177.20, with 766,891 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro QQQ (TQQQ) is -0.15 at $40.23, with 1,623,474 shares traded.
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Apple Inc. (AAPL) is -0.36 at $177.20, with 766,891 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 34,804,588 shares traded.
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Apple Inc. (AAPL) is -0.36 at $177.20, with 766,891 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 15.3 to 15,273.82.
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13864.0
|
2023-09-08 00:00:00 UTC
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US STOCKS-Wall St set for muted open in cautious trading ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-muted-open-in-cautious-trading-ahead-of-inflation-data
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 8 (Reuters) - Wall Street's main indexes were poised for a subdued open on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer.
Stronger-than-expected services activity data and a fall in weekly jobless claims have dented investor sentiment, dragging the S&P 500 .SPX and Nasdaq .IXIC 1.4% and 2% lower so far this week, respectively.
The Consumer Price Index reading for August is due on Sept. 13, while the Federal Reserve's policy decision is scheduled for Sept. 20.
"This month of September so far has taken the path of a negative outlook on rates, meaning that the Fed will probably continue to raise rates to combat the stubborn growth of the economy in the U.S.," said Peter Andersen, founder of Andersen Capital Management
Traders see a 93% chance of interest rates staying at current levels in September, while pricing in a 55.4% chance for a pause in rate hikes in the November meeting, according to CME FedWatch Tool.
Shares of Apple AAPL.O edged 0.1% lower in premarket trading after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces.
Another report on Friday said China was expanding iPhone restrictions to local governments and state-owned companies.
Wall Street analysts see a small hit to Apple's revenue this year from the curbs, with Morgan Stanley saying the worst case scenario was a 4% drop.
At 8:20 a.m. ET, Dow e-minis 1YMcv1 were down 24 points, or 0.07%, S&P 500 e-minis EScv1 were down 3.5 points, or 0.08%, and Nasdaq 100 e-minis NQcv1 were down 19.5 points, or 0.13%.
Investors also digested mixed commentary from several Fed speakers on Thursday.
New York Fed President John Williams kept his options open over future interest rate policy while Dallas Fed President Lorie Logan said though it "could be appropriate" to skip a rate hike in the upcoming meeting, more policy tightening might be needed.
San Francisco Fed President Mary Daly is due to speak later in the day.
Among individual stocks, Faraday Future Intelligent Electric FFIE.O rose 4.4% before the bell. The electric-vehicle maker said there were efforts to spread misinformation about the company and manipulate market sentiment.
Adobe ADBE.O rose 1.7% after Mizuho upgraded the software firm to "buy" from "neutral".
DocuSignDOCU.O added 1.0% as the e-Signature product provider beat second-quarter results estimates and raised its annual revenue forecast.
GameStopGME.N fell 1.4% on a report that the U.S. Securities and Exchange Commission was investigating the videogame retailer's chairman, Ryan Cohen.
KrogerKR.N lost 1.3% after the big-box retailer reported a quarterly net loss as it took a $1.4 billion charge related to a nationwide opioid settlement.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com; amruta.khandekar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O edged 0.1% lower in premarket trading after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes were poised for a subdued open on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer. Wall Street analysts see a small hit to Apple's revenue this year from the curbs, with Morgan Stanley saying the worst case scenario was a 4% drop.
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Shares of Apple AAPL.O edged 0.1% lower in premarket trading after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes were poised for a subdued open on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer. New York Fed President John Williams kept his options open over future interest rate policy while Dallas Fed President Lorie Logan said though it "could be appropriate" to skip a rate hike in the upcoming meeting, more policy tightening might be needed.
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Shares of Apple AAPL.O edged 0.1% lower in premarket trading after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes were poised for a subdued open on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer. "This month of September so far has taken the path of a negative outlook on rates, meaning that the Fed will probably continue to raise rates to combat the stubborn growth of the economy in the U.S.," said Peter Andersen, founder of Andersen Capital Management Traders see a 93% chance of interest rates staying at current levels in September, while pricing in a 55.4% chance for a pause in rate hikes in the November meeting, according to CME FedWatch Tool.
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Shares of Apple AAPL.O edged 0.1% lower in premarket trading after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes were poised for a subdued open on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer. New York Fed President John Williams kept his options open over future interest rate policy while Dallas Fed President Lorie Logan said though it "could be appropriate" to skip a rate hike in the upcoming meeting, more policy tightening might be needed.
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13865.0
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2023-09-08 00:00:00 UTC
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S&P Futures Tick Higher as Investors Weigh Interest Rate Outlook
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AAPL
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https://www.nasdaq.com/articles/sp-futures-tick-higher-as-investors-weigh-interest-rate-outlook
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nan
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nan
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September S&P 500 futures (ESU23) are trending up +0.08% this morning after the S&P 500 and Nasdaq closed in the red on Thursday as technology stocks dropped on concerns over the outlook for Apple, while the latest U.S. jobless claims data stoked worries about sticky inflation.
In Thursday’s trading session, the benchmark S&P 500 dropped to a 1-1/2 week low, and the tech-heavy Nasdaq 100 fell to a 1-week low. Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. Shares of Apple suppliers also lost ground, with Skyworks Solutions Inc (SWKS) and Qualcomm Incorporated (QCOM) plunging more than -7%. In addition, C3.ai Inc (AI) tumbled over -12% after the enterprise software company said it would not be profitable by the end of fiscal year 2024. At the same time, the blue-chip Dow outperformed the other two indices, buoyed by an over +3% gain in Intel Corporation (INTC) after Citi said the chip giant’s previously disclosed foundry customer could be a “whale.” Also, McDonald’s Corporation (MCD) rose more than +1% after Wells Fargo upgraded the stock to Overweight from Equal Weight.
The Labor Department’s report on Thursday showed claims for state unemployment benefits unexpectedly fell -13K to a 7-month low of 216K, stronger than expectations of 234K, which further supports the notion of the Federal Reserve holding rates higher for longer. Also, U.S. unit labor costs were revised higher to +2.2% q/q from +1.6% q/q in the second quarter. In addition, U.S. Q2 nonfarm productivity was revised lower to +3.5% q/q from +3.7% q/q.
“A solid round of employment data that reinforces the perception that the jobs market will remain resilient for the time being. From here, the market will remain wary of corporate-hedging related flows as they have been the biggest driver of price action in US rates thus far in September,” said Ian Lyngen, managing director and head of U.S. rates strategy at BMO Capital Markets.
New York Fed President John Williams said Thursday that U.S. monetary policy is “in a good place,” but policymakers will need to carefully analyze data to determine the appropriate course of action regarding interest rates. Also, Chicago Fed President Austan Goolsbee stated that the debate within the Fed is “very rapidly approaching the time when our argument is not going to be about how high should the rates go.”
Meanwhile, U.S. rate futures have priced in a 7.0% probability of a 25 basis point rate increase at the September FOMC meeting and a 41.7% chance of a 25 basis point rate hike at the November FOMC meeting.
Today, investors will likely focus on U.S. Wholesale Inventories data, which stood at -0.5% m/m in June. Economists foresee the July figure to be -0.1% m/m.
In the bond markets, United States 10-year rates are at 4.240%, down -0.54%.
The Euro Stoxx 50 futures are down -0.90% this morning, ceding earlier gains and heading for an eighth straight day of losses. Losses in construction and chemical stocks are leading the overall market lower. The federal statistics office said on Friday that German inflation fell slightly in August, confirming preliminary data. Meanwhile, Citigroup downgraded its 2023 economic growth projection for the euro area to 0.4%, anticipating the region’s economy to contract “gently” over the next three quarters. In corporate news, Computacenter Plc (CCC.LN) climbed over +6% after the IT reseller reported better-than-expected first-half results.
Germany’s CPI, France’s Industrial Production, and Spain’s Industrial Production data were released today.
The German August CPI has been reported at +0.3% m/m and +6.1% y/y, in line with expectations.
The French July Industrial Production stood at +0.8% m/m, stronger than expectations of +0.1% m/m.
The Spanish July Industrial Production came in at -1.8% y/y, stronger than expectations of -2.0% y/y.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.18%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.16%.
China’s Shanghai Composite today closed lower, extending losses following a series of disappointing economic readings this week, with the weakening yuan adding to the negative market sentiment. The offshore yuan weakened to the lowest level since December 2007 due to the widening services trade deficit and yield gap with other economies, impacting capital flows and trade. Meanwhile, property developers, energy, and media stocks retreated on Friday. On the positive side, semiconductor stocks outperformed due to the launch of Huawei’s Mate 60 Pro+ smartphone.
Japan’s Nikkei 225 Stock Index closed lower today as concerns over tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment, compounded by data revealing that Japan’s economy grew less than initially estimated in the second quarter. Revised government data showed on Friday that Japan’s economy expanded less than initially estimated in the second quarter, primarily due to a decline in capital expenditure. Separately, the Ministry of Finance said on Friday that the country’s current account surplus logged a record amount for July as the trade balance swung to surplus. Meanwhile, Japanese Finance Minister Shunichi Suzuki stated Friday that swift currency fluctuations were undesirable and that authorities wouldn’t rule out any options against excessive swings. Tech and industrial stocks were among the biggest losers on Friday, with chip-making equipment giant Tokyo Electron plunging over -3%. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down -3.63% to 17.24.
The Japanese GDP has been reported at +1.2% q/q and +4.8% y/y in the second quarter, weaker than expectations of +1.5% q/q and +6.0% y/y.
The Japanese July Current Account n.s.a. stood at 2.772T, stronger than expectations of 2.295T.
Pre-Market U.S. Stock Movers
DocuSign Inc (DOCU) rose over +3% in pre-market trading after the electronic signature company posted upbeat Q2 results, lifted its full-year sales guidance, and boosted its share buyback program.
Adobe Systems Incorporated (ADBE) gained over +1% in pre-market trading after Mizuho upgraded the stock to Buy from Neutral.
Smartsheet Inc (SMAR) climbed more than +6% in pre-market trading after the company reported stronger-than-expected Q2 results and provided strong FY24 guidance.
Smith & Wesson Brands Inc (SWBI) soared over +9% in pre-market trading after the company posted upbeat Q1 results.
Spruce Biosciences Inc (SPRB) gained more than +8% in pre-market trading after Leerink upgraded the stock to Outperform from Market Perform.
First Solar Inc (FSLR) rose over +2% in pre-market trading after Deutsche Bank upgraded the stock to Buy from Hold.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Friday - September 8th
Kroger (KR), National Beverage (FIZZ), Hooker Furniture (HOFT), Rent the Runway (RENT).
More Stock Market News from Barchart
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5 Reasons to Buy Microsoft Stock Right Now
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. September S&P 500 futures (ESU23) are trending up +0.08% this morning after the S&P 500 and Nasdaq closed in the red on Thursday as technology stocks dropped on concerns over the outlook for Apple, while the latest U.S. jobless claims data stoked worries about sticky inflation. The Labor Department’s report on Thursday showed claims for state unemployment benefits unexpectedly fell -13K to a 7-month low of 216K, stronger than expectations of 234K, which further supports the notion of the Federal Reserve holding rates higher for longer.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. China’s Shanghai Composite Index (SHCOMP) closed down -0.18%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.16%. Japan’s Nikkei 225 Stock Index closed lower today as concerns over tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment, compounded by data revealing that Japan’s economy grew less than initially estimated in the second quarter.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. Japan’s Nikkei 225 Stock Index closed lower today as concerns over tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment, compounded by data revealing that Japan’s economy grew less than initially estimated in the second quarter. Pre-Market U.S. Stock Movers DocuSign Inc (DOCU) rose over +3% in pre-market trading after the electronic signature company posted upbeat Q2 results, lifted its full-year sales guidance, and boosted its share buyback program.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. The Labor Department’s report on Thursday showed claims for state unemployment benefits unexpectedly fell -13K to a 7-month low of 216K, stronger than expectations of 234K, which further supports the notion of the Federal Reserve holding rates higher for longer. In addition, U.S. Q2 nonfarm productivity was revised lower to +3.5% q/q from +3.7% q/q.
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13866.0
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2023-09-08 00:00:00 UTC
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Can the S&P 500 Triumph over September's Infamous Jinx?
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AAPL
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https://www.nasdaq.com/articles/can-the-sp-500-triumph-over-septembers-infamous-jinx
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nan
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nan
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So far, September is living up to its history as being the worst month of the year for stocks.
Four of the five most heavily weighted S&P components, Apple Inc. (NASDAQ: AAPL), Amazon.com Inc. (AMZN: AAPL), Nvidia Corp. (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOGL), are trading in the red.
Only Microsoft Corp. (NASDAQ: MSFT) had a gain as of the market’s close on September 7, closing the session with a month-to-date increase of 0.66%.
As of September 7, the S&P 500 is down 1.25%. The index closed 2.61% lower in February and 1.25% lower in August.
According to a blog post from the Stock Trader’s Almanac, “September Opens Typically Weak and Closes Weaker,” the S&P 500 has declined on the first trading day of September nine times in the past 15 years.
Then the market goes on to finish lower for the month.
Scarcity of Economic Data in September
One factor that doesn’t help: A scarcity of economic data released in September, relative to other months. It’s not unheard of for upbeat economic news to lead to a broad-market rally.
Jeffrey Hirsch, editor-in-chief of the Stock Trader’s Almanac and author of the blog post, wrote, “With fund managers tending to sell underperforming positions ahead of the end of the third quarter there have been some nasty selloffs near month-end over the years.”
Here’s a look at the September S&P 500 returns over the past 20 years:
2022: -9.34%
2021: -4.76%
2020: -3.92%
2019: +1.72%
2018: +0.43%
2017: +1.93%
2016: -0.12%
2015: -2.64%
2014: -1.55%
2013: +2.97%
2012: +2.42%
2011: -7.18%
2010: +8.76%
2009: +3.36%
2008: -9.08%
As you see, during that time, the S&P finished lower eight times. In his blog post. That steep decline in September 2008 was due to the collapse of Lehman Brothers. The decline in 2011 was due to the U.S. debt ceiling fiasco, and S&P downgrading U.S. debt in August of that year.
In 2022, the tech sector’s 12.18% September decline led the rest of the market lower.
Potential Hurdles to More Gains
This year, headwinds for the S&P for the month, and by extension, the rest of the year, include continued inflation and the related interest-rate hikes, a tepid Chinese economy, ongoing concerns about bank downgrades, and a strong dollar.
When it comes to the individual S&P sectors, the only one up for September, so far, is the Energy Select Sector SPDR Fund (NYSEARCA: XLE). It doesn’t bode well for the broader index if only one sector is showing a positive return.
However, it’s still relatively early in the month. Plenty could happen between now and September 29, the last trading day of the month.
Not all the heavily weighted S&P components are showing losses for September.
For example, Meta Platforms Inc. (NASDAQ: META), Berkshire Hathaway Inc. (NYSE: BRK.B), and UnitedHealth Group Inc. (NYSE: UNH) are among the top non-energy components currently in the black for September.
First-Half Performance a Good Sign?
Some analysts have pointed out that the S&P’s strength in the first seven months of the year may be a good indicator for September’s finish.
It remains to be seen whether AI hype is fading, but it certainly was the catalyst for big gains early in the year, sending Nvidia soaring to the tune of 222% year-to-date.
Nvidia has wobbled since reporting earnings on August 23, despite blowing past estimates. That could be a signal that the broad tech rally is running out of steam. Indeed, the Technology Select Sector SPDR Fund (NYSEARCA: XLK) was down 1.51% in August and is trading 1.84% lower this month.
It’s possible the trend continues, although investors seem to be saying “Show me, don’t tell me,” when it comes to AI.
But another data point, that goes beyond just the month of September: When the S&P closes lower for the year, as it did in 2022, it’s very rare for it to finish to the downside the following year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Four of the five most heavily weighted S&P components, Apple Inc. (NASDAQ: AAPL), Amazon.com Inc. (AMZN: AAPL), Nvidia Corp. (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOGL), are trading in the red. Jeffrey Hirsch, editor-in-chief of the Stock Trader’s Almanac and author of the blog post, wrote, “With fund managers tending to sell underperforming positions ahead of the end of the third quarter there have been some nasty selloffs near month-end over the years.” Here’s a look at the September S&P 500 returns over the past 20 years: 2022: -9.34% 2021: -4.76% 2020: -3.92% 2019: +1.72% 2018: +0.43% 2017: +1.93% 2016: -0.12% 2015: -2.64% 2014: -1.55% 2013: +2.97% 2012: +2.42% 2011: -7.18% 2010: +8.76% 2009: +3.36% 2008: -9.08% As you see, during that time, the S&P finished lower eight times. It remains to be seen whether AI hype is fading, but it certainly was the catalyst for big gains early in the year, sending Nvidia soaring to the tune of 222% year-to-date.
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Four of the five most heavily weighted S&P components, Apple Inc. (NASDAQ: AAPL), Amazon.com Inc. (AMZN: AAPL), Nvidia Corp. (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOGL), are trading in the red. Scarcity of Economic Data in September One factor that doesn’t help: A scarcity of economic data released in September, relative to other months. When it comes to the individual S&P sectors, the only one up for September, so far, is the Energy Select Sector SPDR Fund (NYSEARCA: XLE).
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Four of the five most heavily weighted S&P components, Apple Inc. (NASDAQ: AAPL), Amazon.com Inc. (AMZN: AAPL), Nvidia Corp. (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOGL), are trading in the red. According to a blog post from the Stock Trader’s Almanac, “September Opens Typically Weak and Closes Weaker,” the S&P 500 has declined on the first trading day of September nine times in the past 15 years. Jeffrey Hirsch, editor-in-chief of the Stock Trader’s Almanac and author of the blog post, wrote, “With fund managers tending to sell underperforming positions ahead of the end of the third quarter there have been some nasty selloffs near month-end over the years.” Here’s a look at the September S&P 500 returns over the past 20 years: 2022: -9.34% 2021: -4.76% 2020: -3.92% 2019: +1.72% 2018: +0.43% 2017: +1.93% 2016: -0.12% 2015: -2.64% 2014: -1.55% 2013: +2.97% 2012: +2.42% 2011: -7.18% 2010: +8.76% 2009: +3.36% 2008: -9.08% As you see, during that time, the S&P finished lower eight times.
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Four of the five most heavily weighted S&P components, Apple Inc. (NASDAQ: AAPL), Amazon.com Inc. (AMZN: AAPL), Nvidia Corp. (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOGL), are trading in the red. As of September 7, the S&P 500 is down 1.25%. In 2022, the tech sector’s 12.18% September decline led the rest of the market lower.
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13867.0
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2023-09-08 00:00:00 UTC
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2 Leading Tech Stocks to Watch as AI Disrupts Gaming
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AAPL
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https://www.nasdaq.com/articles/2-leading-tech-stocks-to-watch-as-ai-disrupts-gaming
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nan
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nan
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The rise of generative artificial intelligence (AI) threatens to upend numerous industries in ways that may be a bit difficult to fathom. Though OpenAI — the firm behind the large language model (LLM) that impressed the masses — was the company to fire the gun that started the so-called AI race, only time will tell which firm will lead and ultimately run past the finish line first.
Here, we'll look at two companies that could transform the way we view the video game industry. Undoubtedly, the gaming industry's total addressable market (or TAM) is massive, estimated to be worth around $217 billion in 2022, and it's growing quickly at a 13.4% CAGR (compound annual growth rate), according to Grand View Research. Throw new technologies (like AI), and new devices (headsets) into the equation, and I think there's a chance the CAGR could accelerate closer to 15%.
The gaming scene has been dominated by mobile games and the rise of casual gamers who are seemingly glued to their smartphones. As new innovations advance, such as spatial computing and generative AI, there's a good chance the games of the future could draw in even larger crowds on a growing number of devices. For example, could Apple's (AAPL) Vision Pro headset help the virtual-reality field really take off?
Further, the rise of microtransactions and regular expansions could help better monetize your average video game release. In any case, big tech (hello, FAANG stocks!) has its sights set on the world of gaming and the potential growth it can offer.
Microsoft Stock Has Game (And Unmatched AI Talent!)
Microsoft's (MSFT) acquisition of Activision Blizzard (ATVI) may finally close in October. And if it does, that's one massive player that's off the public markets, making it pretty slim pickings for other large-cap companies with the desire to help consolidate the industry.
Love it or hate it, Microsoft's acquisition of Activision Blizzard looks to be a big win for Xbox Game Pass users. With new (or Day One) titles, like the recently released Starfield, available to subscribers, the days of buying games a la carte style may be numbered.
Starfield is an ambitious game that was reportedly 25 years in the making. The game may not be the most aesthetically pleasing. However, it does boast over 1,000 planets for gamers to explore. The scale of the game is so massive that it's actually quite profound.
Though such massive-scale open-world (or open-universe, in the case of Starfield) games carry a great deal of risk, given the development costs, I do think the rise of AI and the processing power behind many LLMs could translate to more ambitious titles just like Starfield.
Though Starfield has been met with mixed reviews by various critics, I still believe Microsoft is on the right track as it looks to flex its video game muscles and further dominate the industry.
For now, Microsoft stock has been driven higher, mainly by AI hype. The company has been rolling out various generative AI features across its software suite, while attempting to gain share in the search space, with Bing backed by ChatGPT.
www.barchart.com
Indeed, Microsoft seems to want to add a bit of AI magic to almost all of its products. Gaming could be one of them. Phil Spencer, the CEO of Xbox Gaming, is aware of the technology's disruptive potential, but is "protective of the creative process" for now. I think that's exactly what gamers and developers want to hear!
Over time, I view AI as a tool that could help developers not only become more productive but more creative. That bodes well for future titles that aim to one-up Starfield in terms of scale and ambition.
Take-Two Interactive Software: Grand Theft Auto Made Grander With AI?
Speaking of large-scale, ambitious titles, Take-Two Interactive (TTWO) is the company behind the infamous Grand Theft Auto series. With the latest release (Grand Theft Auto VI) likely coming in 2024 or 2025, all eyes will be on TTWO, which is now up more than 50% from last year's lows.
www.barchart.com
Though not much is known about what's in store for Grand Theft Auto VI, I do think recent news about an AI mod in Graft Theft Auto V is very intriguing. The company recently removed a mod (Sentient Streets) that allows players to have open-ended conversations with NPCs (Non-Player Characters).
As incredible as the technology is, there are risks associated with any LLM lacking in guardrails. As such, it's no mystery as to why Take-Two removed the mod. In any case, the generative NPC AI tech seems to be here. The only question is whether it's safe enough to launch alongside a multi-billion-dollar blockbuster title.
Conclusion
Microsoft and Take-Two are two firms that could help evolve the gaming industry as we know it. Both companies are certainly worth keeping tabs on as the industry levels up!
On the date of publication, Joey Frenette did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, could Apple's (AAPL) Vision Pro headset help the virtual-reality field really take off? Undoubtedly, the gaming industry's total addressable market (or TAM) is massive, estimated to be worth around $217 billion in 2022, and it's growing quickly at a 13.4% CAGR (compound annual growth rate), according to Grand View Research. As new innovations advance, such as spatial computing and generative AI, there's a good chance the games of the future could draw in even larger crowds on a growing number of devices.
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For example, could Apple's (AAPL) Vision Pro headset help the virtual-reality field really take off? Take-Two Interactive Software: Grand Theft Auto Made Grander With AI? Speaking of large-scale, ambitious titles, Take-Two Interactive (TTWO) is the company behind the infamous Grand Theft Auto series.
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For example, could Apple's (AAPL) Vision Pro headset help the virtual-reality field really take off? The gaming scene has been dominated by mobile games and the rise of casual gamers who are seemingly glued to their smartphones. Microsoft Stock Has Game (And Unmatched AI Talent!)
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For example, could Apple's (AAPL) Vision Pro headset help the virtual-reality field really take off? Here, we'll look at two companies that could transform the way we view the video game industry. Gaming could be one of them.
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13868.0
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2023-09-08 00:00:00 UTC
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US STOCKS-Wall St rises as megacaps gain, yields slip ahead of US inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-as-megacaps-gain-yields-slip-ahead-of-us-inflation-data
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nan
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nan
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By Sinéad Carew, Shristi Achar A and Amruta Khandekar
Sept 8 (Reuters) - Wall Street's main indexes rose on Friday with a rising technology sector helping Nasdaq regain ground after four straight declines, but gains were limited as investors waited tentatively for August U.S. inflation readings.
Growth stocks benefited from a dip in U.S. Treasury yields. Microsoft MSFT.Orose more than 1%, and Apple AAPL.O was up 1% after a deep two-day selloff following news Beijing had ordered central government employees to stop using iPhones at work.
Wall Street analysts calculated just a small hit to Apple revenue this year from the curbs, with Morgan Stanley calling a 4% drop the worst case scenario.
After losing 2.9% in two sessions, the S&P 500 information technology .SPLRCT sector was up 0.5%. Defensive utilities .SPLRCU and energy .SPNY led gains among the 11 S&P 500 industry sectors with support from rising crude prices.
"This is just a little bit of a dead cat bounce," said Kenny Polcari, Chief market strategist at Slatestone Wealth, Jupiter, Florida who pointed to "three to four days of real pressure on the market because of the China news on Apple and because of the spike in oil prices."
"Oil caused nervousness in the market that inflation is not under control and in technology the Apple news gave investors opportunities to take profits from outperformers," he said.
The Dow Jones Industrial Average .DJI rose 98.01 points, or 0.28%, to 34,598.74, the S&P 500 .SPX gained 12.39 points, or 0.28%, to 4,463.53 and the Nasdaq Composite .IXIC added 53.02 points, or 0.39%, to 13,801.85.
The S&P 500 and the Nasdaq were on track for declines of more than 1% for the week, shortened by Monday's market holiday on Labor Day. The Dow was down 0.7% for the week so far.
Inflation fears stemming from rising oil prices, stronger-than-expected services activity data and a fall in weekly jobless claims, have fed concerns the Federal Reserve may keep interest rates higher for longer.
The Consumer Price Index (CPI) for August is due on Sept. 13; the Federal Reserve's next interest rate decision is scheduled for Sept. 20.
"My expectation is that the CPI print could come in higher than expected (with) the price of oil pushing higher," said Phil Blancato, chief executive officer of Ladenburg Thalmann Asset Management.
"We have a problem where ultimately the Fed may be pushed into a corner, and while they might take a pause because of the lag effect, I don't think they're done."
Traders' bets that interest rates stay at current levels in September stood at 95%, and they have priced in a near 55% chance for a pause in rate hikes in the November meeting, according to CME FedWatch Tool.
Mixed comments from Fed officials have added to uncertainty. New York Fed President John Williams kept his options open, while Dallas Fed President Lorie Logan said though it "could be appropriate" to keep rates steady at the next meeting, more tightening might be needed.
In individual stocks, KrogerKR.N was up 4.3% after the retailer beat estimates for quarterly adjusted profit.
Gilead SciencesGILD.O added 2.6% after BofA Securities upgraded the drugmaker to "buy" from "neutral."
GameStopGME.N was off 6% after a report that the U.S. Securities and Exchange Commission was investigating the videogame retailer's chairman, Ryan Cohen.
Advancing issues outnumbered declining ones on the NYSE by a 1.40-to-1 ratio. The S&P 500 posted 13 new 52-week highs and 15 new lows; the Nasdaq Composite recorded 34 new highs and 192 new lows.
(Reporting by Sinéad Carew in New York, Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur, Vinay Dwivedi and David Gregorio)
((sinead.carew@thomsonreuters.com; +1 332-219-1897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft MSFT.Orose more than 1%, and Apple AAPL.O was up 1% after a deep two-day selloff following news Beijing had ordered central government employees to stop using iPhones at work. By Sinéad Carew, Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes rose on Friday with a rising technology sector helping Nasdaq regain ground after four straight declines, but gains were limited as investors waited tentatively for August U.S. inflation readings. Wall Street analysts calculated just a small hit to Apple revenue this year from the curbs, with Morgan Stanley calling a 4% drop the worst case scenario.
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Microsoft MSFT.Orose more than 1%, and Apple AAPL.O was up 1% after a deep two-day selloff following news Beijing had ordered central government employees to stop using iPhones at work. By Sinéad Carew, Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes rose on Friday with a rising technology sector helping Nasdaq regain ground after four straight declines, but gains were limited as investors waited tentatively for August U.S. inflation readings. The Dow Jones Industrial Average .DJI rose 98.01 points, or 0.28%, to 34,598.74, the S&P 500 .SPX gained 12.39 points, or 0.28%, to 4,463.53 and the Nasdaq Composite .IXIC added 53.02 points, or 0.39%, to 13,801.85.
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Microsoft MSFT.Orose more than 1%, and Apple AAPL.O was up 1% after a deep two-day selloff following news Beijing had ordered central government employees to stop using iPhones at work. By Sinéad Carew, Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes rose on Friday with a rising technology sector helping Nasdaq regain ground after four straight declines, but gains were limited as investors waited tentatively for August U.S. inflation readings. "This is just a little bit of a dead cat bounce," said Kenny Polcari, Chief market strategist at Slatestone Wealth, Jupiter, Florida who pointed to "three to four days of real pressure on the market because of the China news on Apple and because of the spike in oil prices."
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Microsoft MSFT.Orose more than 1%, and Apple AAPL.O was up 1% after a deep two-day selloff following news Beijing had ordered central government employees to stop using iPhones at work. By Sinéad Carew, Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes rose on Friday with a rising technology sector helping Nasdaq regain ground after four straight declines, but gains were limited as investors waited tentatively for August U.S. inflation readings. "This is just a little bit of a dead cat bounce," said Kenny Polcari, Chief market strategist at Slatestone Wealth, Jupiter, Florida who pointed to "three to four days of real pressure on the market because of the China news on Apple and because of the spike in oil prices."
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13869.0
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2023-09-08 00:00:00 UTC
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September Remains Markets' Cooling Saucer
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AAPL
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https://www.nasdaq.com/articles/september-remains-markets-cooling-saucer
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nan
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nan
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Pre-market futures are up and down this final trading day of the holiday-shortened season, and so far, September’s reputation for being a cooling agent on equity valuations — and that’s being kind — is bearing out. The four major indices have not been in lock-step, but are all down month to date: the Dow -1.22%, the S&P 500 -1.51%, the Nasdaq -1.46% and the small-cap Russell 2000 -2.42%.
We don’t have a lot of market catalysts expected today, although Wholesale Inventories for July come out after the opening bell, as does Consumer Credit, also for July, later this afternoon. Next week will be the bigger one for economic prints, with Consumer Price Index (CPI) and Producer Price Index (PPI) figures out mid-week, along with Retail Sales and a host of other metrics. These will be closely watched by the Fed, who meets on monetary policy the following week, as well as analysts paying close attention to what the Fed is likely to do.
One of this week’s main issues is the economic slowdown in China once again — and, perhaps more importantly, the iPhone ban in the country which has sent Apple AAPL shares down -5.5% in the past week. But the economic pressures in the world’s second-largest economy is also affecting luxury brands such as LVMH LVMUY, which is down -9.5% over the past five trading days. Much of the positive outlook for the global economy had been predicated on a continued improvement in the Chinese economy. Is this latest downturn a hiccup or the sign of something more serious?
In any case, the blue-chip Dow is on pace for its third down-week in the past four, same as the Nasdaq and Russell, while the S&P is down four straight. Keeping powder dry looks like the move, at least until new potential market movers emerge. Of those things scheduled, we’d suggest earmarking next Wednesday’s core CPI, which last month came in at 2-month lows, to +4.7%. While nicely off the 6%+ reads we were seeing a year ago, it’s still a ways from the Fed’s optimal inflation level of 2%.
Questions or comments about this article and/or author? Click here>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One of this week’s main issues is the economic slowdown in China once again — and, perhaps more importantly, the iPhone ban in the country which has sent Apple AAPL shares down -5.5% in the past week. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report To read this article on Zacks.com click here. Pre-market futures are up and down this final trading day of the holiday-shortened season, and so far, September’s reputation for being a cooling agent on equity valuations — and that’s being kind — is bearing out.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report To read this article on Zacks.com click here. One of this week’s main issues is the economic slowdown in China once again — and, perhaps more importantly, the iPhone ban in the country which has sent Apple AAPL shares down -5.5% in the past week. Next week will be the bigger one for economic prints, with Consumer Price Index (CPI) and Producer Price Index (PPI) figures out mid-week, along with Retail Sales and a host of other metrics.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report To read this article on Zacks.com click here. One of this week’s main issues is the economic slowdown in China once again — and, perhaps more importantly, the iPhone ban in the country which has sent Apple AAPL shares down -5.5% in the past week. Click here>> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come.
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One of this week’s main issues is the economic slowdown in China once again — and, perhaps more importantly, the iPhone ban in the country which has sent Apple AAPL shares down -5.5% in the past week. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report LVMH-Moet Hennessy Louis Vuitton SA (LVMUY) : Free Stock Analysis Report To read this article on Zacks.com click here. Click here>> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come.
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13870.0
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2023-09-08 00:00:00 UTC
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JP Morgan Maintains Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/jp-morgan-maintains-apple-aapl-overweight-recommendation-1
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nan
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Fintel reports that on September 8, 2023, JP Morgan maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 15.28% Upside
As of August 31, 2023, the average one-year price target for Apple is 204.70. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 15.28% from its latest reported closing price of 177.56.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6404 funds or institutions reporting positions in Apple. This is an increase of 17 owner(s) or 0.27% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.78%. Total shares owned by institutions increased in the last three months by 0.27% to 9,940,919K shares.
The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 139.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Additional reading:
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
APPLE INC. Officer’s Certificate
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on September 8, 2023, JP Morgan maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on September 8, 2023, JP Morgan maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on September 8, 2023, JP Morgan maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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Fintel reports that on September 8, 2023, JP Morgan maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.78%. The put/call ratio of AAPL is 0.88, indicating a bullish outlook.
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13871.0
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2023-09-08 00:00:00 UTC
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Better Buy: Amazon vs. Apple
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-amazon-vs.-apple-3
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nan
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nan
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the biggest names in commerce, with one dominating online shopping and the other having a similar command of consumer electronics. Their success has earned them spots in the world's top-five most valuable companies by market capitalization, yet they're still potentially lucrative growth stocks.
In 2023, shares in Amazon and Apple have climbed 63% and 45%, respectively, thanks to easing inflation and excitement over certain tech markets like artificial intelligence (AI). However, it's not too late to profit from the long-term potential of these companies, with both active in multiple high-growth industries.
Let's assess whether Amazon to Apple stock is currently the better buy now.
Amazon: Winning in e-commerce
Amazon holds a 38% market share in online retail in the U.S., with its dominance demonstrated by the fact that Walmart's second-largest share is only 6%. While Amazon's authority in the sector has seen it soar to record heights, it also left its business vulnerable amid 2022's economic downturn. The company's retail segments reported a combined $10.6 billion in operating losses for the fiscal year as inflation hikes caused reductions in consumer spending.
However, Amazon has come back strong in 2023. Restructuring moves and a gradually improving economy have allowed for a revival in its retail business. In the second quarter, Amazon's North American segment reported operating income of more than $3 billion. That figure is a significant improvement from the $637 million in losses the segment suffered in the year-ago period.
About 80% of Amazon's total revenue regularly comes from its e-commerce business, making the recovery a massive selling point for its stock. Alongside an expanding role in AI with its cloud platform, Amazon Web Services, the company appears on a growth path that could be worth an investment.
Apple: A solid long-term outlook
Apple hasn't had it as easy as Amazon this year. Its stock has made solid gains since Jan. 1, but macroeconomic headwinds have caught up with its business, leading to revenue declines in several product segments. In the third quarter of 2023, the company's revenue fell for the third consecutive quarter, tumbling 1% year over year.
The bright spot of Apple's earnings this year has been its booming services segment. The digital business delivered an 8% rise in revenue thanks to higher sales from subscription services and the App Store. Services are particularly lucrative for Apple, with profit margins often hovering around 70% compared to products' 35%. Services have strengthened the company's business for the long term, diversifying its revenue and allowing it to lean less on product sales during uncertain times.
Despite Apple's recent challenges in products, it remains a leader in consumer tech. The company has leading market shares in smartphones, smartwatches, headphones, and tablets. Its dominance in the industry bodes well for when the market inevitably recovers and economic hurdles subside, and consumers can spend more freely. As a result, it's crucial to keep a long-term mindset with Apple shares.
Apple's stock has risen 232% in the last five years. It will take time for its business to bounce back fully. However, it remains an attractive long-term hold.
Is Amazon or Apple the better buy?
As two of the biggest names in tech and consumer goods, it's hard to go wrong with Amazon's or Apple's stock. However, Amazon appears to be the better buy right now, with more room for growth over the next year. The retail giant's business is on a promising trajectory as it recovers what it lost in 2022 and becomes a major player in AI.
Additionally, despite a recent rally, Amazon's stock remains down 26% from a record high it hit in July 2021 during the pandemic. The dip suggests the company's shares have plenty of room for growth. Meanwhile, Apple shares achieved an all-time high of $196 per share in July 2023 and have only slipped about 3% since then.
As a result, Amazon is currently the better buy. However, it's still wise to keep Apple on your radar for a potential future investment.
10 stocks we like better than Amazon.com
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the biggest names in commerce, with one dominating online shopping and the other having a similar command of consumer electronics. The company's retail segments reported a combined $10.6 billion in operating losses for the fiscal year as inflation hikes caused reductions in consumer spending. Alongside an expanding role in AI with its cloud platform, Amazon Web Services, the company appears on a growth path that could be worth an investment.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the biggest names in commerce, with one dominating online shopping and the other having a similar command of consumer electronics. Their success has earned them spots in the world's top-five most valuable companies by market capitalization, yet they're still potentially lucrative growth stocks. Amazon: Winning in e-commerce Amazon holds a 38% market share in online retail in the U.S., with its dominance demonstrated by the fact that Walmart's second-largest share is only 6%.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the biggest names in commerce, with one dominating online shopping and the other having a similar command of consumer electronics. Let's assess whether Amazon to Apple stock is currently the better buy now. Amazon: Winning in e-commerce Amazon holds a 38% market share in online retail in the U.S., with its dominance demonstrated by the fact that Walmart's second-largest share is only 6%.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the biggest names in commerce, with one dominating online shopping and the other having a similar command of consumer electronics. Amazon: Winning in e-commerce Amazon holds a 38% market share in online retail in the U.S., with its dominance demonstrated by the fact that Walmart's second-largest share is only 6%. The company's retail segments reported a combined $10.6 billion in operating losses for the fiscal year as inflation hikes caused reductions in consumer spending.
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13872.0
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2023-09-08 00:00:00 UTC
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S&P Futures Tick Lower as Investors Weigh Interest Rate Outlook
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AAPL
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https://www.nasdaq.com/articles/sp-futures-tick-lower-as-investors-weigh-interest-rate-outlook
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nan
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nan
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September S&P 500 futures (ESU23) are trending down -0.24% this morning after the S&P 500 and Nasdaq closed in the red on Thursday as technology stocks dropped on concerns over the outlook for Apple, while the latest jobless claims data stoked worries about sticky inflation.
In Thursday’s trading session, the benchmark S&P 500 dropped to a 1-1/2 week low, and the tech-heavy Nasdaq 100 fell to a 1-week low. Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. Shares of Apple suppliers also lost ground, with Skyworks Solutions Inc (SWKS) and Qualcomm Incorporated (QCOM) plunging more than -7%. In addition, C3.ai Inc (AI) tumbled over -12% after the enterprise software company said it would not be profitable by the end of fiscal year 2024. At the same time, the blue-chip Dow outperformed the other two indices, buoyed by an over +3% gain in Intel Corporation (INTC) after Citi said the chip giant’s previously disclosed foundry customer could be a “whale.” Also, McDonald’s Corporation (MCD) rose more than +1% after Wells Fargo upgraded the stock to Overweight from Equal Weight.
The Labor Department’s report on Thursday showed claims for state unemployment benefits unexpectedly fell -13K to a 7-month low of 216K, stronger than expectations of 234K, which further supports the notion of the Federal Reserve holding rates higher for longer. Also, U.S. unit labor costs were revised higher to +2.2% q/q from +1.6% q/q in the second quarter. In addition, U.S. Q2 nonfarm productivity was revised lower to +3.5% q/q from +3.7% q/q.
“A solid round of employment data that reinforces the perception that the jobs market will remain resilient for the time being. From here, the market will remain wary of corporate-hedging related flows as they have been the biggest driver of price action in US rates thus far in September,” said Ian Lyngen, managing director and head of U.S. rates strategy at BMO Capital Markets.
New York Fed President John Williams said Thursday that U.S. monetary policy is “in a good place,” but policymakers will need to carefully analyze data to determine the appropriate course of action regarding interest rates. Also, Chicago Fed President Austan Goolsbee stated that the debate within the Fed is “very rapidly approaching the time when our argument is not going to be about how high should the rates go.”
Meanwhile, U.S. rate futures have priced in a 7.0% probability of a 25 basis point rate increase at the September FOMC meeting and a 41.7% chance of a 25 basis point rate hike at the November FOMC meeting.
Today, investors will likely focus on U.S. Wholesale Inventories data, which stood at -0.5% m/m in June. Economists foresee the July figure to be -0.1% m/m.
In the bond markets, United States 10-year rates are at 4.240%, down -0.54%.
The Euro Stoxx 50 futures are down -0.90% this morning, ceding earlier gains and heading for an eighth straight day of losses. Losses in chemical and bank stocks are leading the overall market lower. The federal statistics office said on Friday that German inflation fell slightly in August, confirming preliminary data. Meanwhile, Citigroup downgraded its 2023 economic growth projection for the euro area to 0.4%, anticipating the region’s economy to contract “gently” over the next three quarters. In corporate news, Computacenter Plc (CCC.LN) climbed over +6% after the IT reseller reported better-than-expected first-half results.
Germany’s CPI, France’s Industrial Production, and Spain’s Industrial Production data were released today.
The German August CPI has been reported at +0.3% m/m and +6.1% y/y, in line with expectations.
The French July Industrial Production stood at +0.8% m/m, stronger than expectations of +0.1% m/m.
The Spanish July Industrial Production came in at -1.8% y/y, stronger than expectations of -2.0% y/y.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.18%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.16%.
China’s Shanghai Composite today closed lower, extending losses following a series of disappointing economic readings this week, with the weakening yuan adding to the negative market sentiment. The offshore yuan weakened to the lowest level since December 2007 due to the widening services trade deficit and yield gap with other economies, impacting capital flows and trade. Meanwhile, property developers, energy, and media stocks retreated on Friday. On the positive side, semiconductor stocks outperformed due to the launch of Huawei’s Mate 60 Pro+ smartphone.
Japan’s Nikkei 225 Stock Index closed lower today as concerns over tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment, compounded by data revealing that Japan’s economy grew less than initially estimated in the second quarter. Revised government data showed on Friday that Japan’s economy expanded less than initially estimated in the second quarter, primarily due to a decline in capital expenditure. Separately, the Ministry of Finance said on Friday that the country’s current account surplus logged a record amount for July as the trade balance swung to surplus. Meanwhile, Japanese Finance Minister Shunichi Suzuki stated Friday that swift currency fluctuations were undesirable and that authorities wouldn’t rule out any options against excessive swings. Tech and industrial stocks were among the biggest losers on Friday, with chip-making equipment giant Tokyo Electron plunging over -3%. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +4.38% to 17.89.
The Japanese GDP has been reported at +1.2% q/q and +4.8% y/y in the second quarter, weaker than expectations of +1.5% q/q and +6.0% y/y.
The Japanese July Current Account n.s.a. stood at 2.772T, stronger than expectations of 2.295T.
Pre-Market U.S. Stock Movers
DocuSign Inc (DOCU) rose over +3% in pre-market trading after the electronic signature company posted upbeat Q2 results, lifted its full-year sales guidance, and boosted its share buyback program.
Adobe Systems Incorporated (ADBE) gained over +1% in pre-market trading after Mizuho upgraded the stock to Buy from Neutral.
Smartsheet Inc (SMAR) climbed more than +6% in pre-market trading after the company reported stronger-than-expected Q2 results and provided strong FY24 guidance.
Smith & Wesson Brands Inc (SWBI) soared over +9% in pre-market trading after the company posted upbeat Q1 results.
Spruce Biosciences Inc (SPRB) gained more than +8% in pre-market trading after Leerink upgraded the stock to Outperform from Market Perform.
First Solar Inc (FSLR) rose over +2% in pre-market trading after Deutsche Bank upgraded the stock to Buy from Hold.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Friday - September 8th
Kroger (KR), National Beverage (FIZZ), Hooker Furniture (HOFT), Rent the Runway (RENT).
More Stock Market News from Barchart
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5 Reasons to Buy Microsoft Stock Right Now
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. September S&P 500 futures (ESU23) are trending down -0.24% this morning after the S&P 500 and Nasdaq closed in the red on Thursday as technology stocks dropped on concerns over the outlook for Apple, while the latest jobless claims data stoked worries about sticky inflation. The Labor Department’s report on Thursday showed claims for state unemployment benefits unexpectedly fell -13K to a 7-month low of 216K, stronger than expectations of 234K, which further supports the notion of the Federal Reserve holding rates higher for longer.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. China’s Shanghai Composite Index (SHCOMP) closed down -0.18%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.16%. Japan’s Nikkei 225 Stock Index closed lower today as concerns over tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment, compounded by data revealing that Japan’s economy grew less than initially estimated in the second quarter.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. Japan’s Nikkei 225 Stock Index closed lower today as concerns over tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment, compounded by data revealing that Japan’s economy grew less than initially estimated in the second quarter. Pre-Market U.S. Stock Movers DocuSign Inc (DOCU) rose over +3% in pre-market trading after the electronic signature company posted upbeat Q2 results, lifted its full-year sales guidance, and boosted its share buyback program.
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Apple Inc (AAPL) slid over -2% following a Bloomberg report indicating China’s intention to broaden the iPhone ban to encompass government-backed agencies and state companies. In addition, U.S. Q2 nonfarm productivity was revised lower to +3.5% q/q from +3.7% q/q. Losses in chemical and bank stocks are leading the overall market lower.
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13873.0
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2023-09-08 00:00:00 UTC
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US STOCKS-S&P 500 closes up slightly ahead of US inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-closes-up-slightly-ahead-of-us-inflation-data
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nan
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nan
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By Sinéad Carew, Shristi Achar A and Amruta Khandekar
Sept 8 (Reuters) - The S&P 500 closed slightly higher on Friday but well below its session high and all three of Wall Street's major averages posted weekly declines as investors worried about interest rates and waited anxiously for upcoming U.S. inflation readings.
Investors worried about rising oil prices and have been fretting ahead of the Consumer Price Index (CPI) for August, due out on Sept. 13, seeking signals about the Federal Reserve's likely moves on interest rates.
While traders bet on a roughly 93% probability the Fed keeps rates at current levels after its next meeting ends on Sept. 20., they are pricing in a more divided 53.5% chance for another pause at the November meeting, according to CME group's FedWatch Tool.
Yields on benchmark U.S. 10-year notes were lower, Friday's rise in U.S. 2-year Treasury yields appeared to pressure stocks. David Lefkowitz, head of US Equities at UBS Global Wealth Management, noted investors have been increasingly concerned about rising rates since early August.
"The tone has changed in recent weeks because of the move up in rates. People are questioning whether this is a risk to economic growth. Are higher rates going to lead to some slow down in conjunction with the dwindling of excess consumer savings," said Lefkowitz, who also cited concerns about high valuations in equities.
The Dow Jones Industrial Average .DJI rose 75.86 points, or 0.22%, to 34,576.59, the S&P 500 .SPX gained 6.35 points, or 0.14%, to 4,457.49 and the Nasdaq Composite .IXIC added 12.69 points, or 0.09%, to 13,761.53.
For the week, which was shortened by Monday's Labor Day holiday, the S&P 500 fell 1.3%, while the Nasdaq lost 1.9% with both snapping two weeks of gains. The Dow fell 0.8%.
Apple AAPL.O managed a small 0.3% gain on Friday, though its close of $178.18 was about $2 below its session high as a rally lost steam. The iPhone maker fell sharply in the previous two sessions, pushing down the broader technology sector on news that Beijing had banned central government employees from using iPhones at work.
After losing 2.9% in two sessions, the S&P 500 technology sector .SPLRCT closed higher. But energy .SPNY, up 0.97%, boasted the biggest percentage gains among the 11 S&P 500's industry sectors as oil prices rose.
Defensive utilities sector .SPLRCU had a daily gain of 0.96% while the biggest decliner was real estate .SPLRCR, which lost 0.63%.
Along with three straight months of gains for crude futures and a positive start to September, this week's economic data also fueled inflation fears. Services activity data came in stronger than expected and weekly jobless claims fell.
"My expectation is that the CPI print could come in higher than expected (with) the price of oil pushing higher," said Phil Blancato, chief executive officer of Ladenburg Thalmann Asset Management.
"We have a problem where ultimately the Fed may be pushed into a corner, and while they might take a pause because of the lag effect, I don't think they're done."
Mixed comments from Fed officials have fueled uncertainty. New York Fed President John Williams kept his options open this week, while Dallas Fed President Lorie Logan said that while it "could be appropriate" to keep rates steady at the next meeting, more tightening might be needed.
In individual stocks, KrogerKR.Nclosed up 3% after the retailer beat estimates for quarterly adjusted profit.
Gilead SciencesGILD.Oadded 2.8% after BofA Securities upgraded the drugmaker to "buy" from "neutral."
GameStopGME.N finished down 6% after a report that the U.S. Securities and Exchange Commission was investigating the videogame retailer's chairman, Ryan Cohen.
Advancing issues outnumbered declining ones on the NYSE by a 1.14-to-1 ratio; on Nasdaq, a 1.19-to-1 ratio favored decliners.
The S&P 500 posted 13 new 52-week highs and 17 new lows; the Nasdaq Composite recorded 36 new highs and 229 new lows.
On U.S. exchanges 8.89 billion shares changed hands compared to the 9.96 billion moving average for the last 20 sessions.
(Reporting by Sinéad Carew, Chuck Mikolajczak, Gertrude Chavez-Dreyfuss in New York, Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur, Vinay Dwivedi and David Gregorio)
((sinead.carew@thomsonreuters.com; +1 332-219-1897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O managed a small 0.3% gain on Friday, though its close of $178.18 was about $2 below its session high as a rally lost steam. By Sinéad Carew, Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - The S&P 500 closed slightly higher on Friday but well below its session high and all three of Wall Street's major averages posted weekly declines as investors worried about interest rates and waited anxiously for upcoming U.S. inflation readings. David Lefkowitz, head of US Equities at UBS Global Wealth Management, noted investors have been increasingly concerned about rising rates since early August.
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Apple AAPL.O managed a small 0.3% gain on Friday, though its close of $178.18 was about $2 below its session high as a rally lost steam. By Sinéad Carew, Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - The S&P 500 closed slightly higher on Friday but well below its session high and all three of Wall Street's major averages posted weekly declines as investors worried about interest rates and waited anxiously for upcoming U.S. inflation readings. Investors worried about rising oil prices and have been fretting ahead of the Consumer Price Index (CPI) for August, due out on Sept. 13, seeking signals about the Federal Reserve's likely moves on interest rates.
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Apple AAPL.O managed a small 0.3% gain on Friday, though its close of $178.18 was about $2 below its session high as a rally lost steam. By Sinéad Carew, Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - The S&P 500 closed slightly higher on Friday but well below its session high and all three of Wall Street's major averages posted weekly declines as investors worried about interest rates and waited anxiously for upcoming U.S. inflation readings. For the week, which was shortened by Monday's Labor Day holiday, the S&P 500 fell 1.3%, while the Nasdaq lost 1.9% with both snapping two weeks of gains.
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Apple AAPL.O managed a small 0.3% gain on Friday, though its close of $178.18 was about $2 below its session high as a rally lost steam. By Sinéad Carew, Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - The S&P 500 closed slightly higher on Friday but well below its session high and all three of Wall Street's major averages posted weekly declines as investors worried about interest rates and waited anxiously for upcoming U.S. inflation readings. Investors worried about rising oil prices and have been fretting ahead of the Consumer Price Index (CPI) for August, due out on Sept. 13, seeking signals about the Federal Reserve's likely moves on interest rates.
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13874.0
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2023-09-08 00:00:00 UTC
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Japan's Nikkei slumps to weekly loss on US rate jitters, iPhone ban
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AAPL
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https://www.nasdaq.com/articles/japans-nikkei-slumps-to-weekly-loss-on-us-rate-jitters-iphone-ban
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By Kevin Buckland
TOKYO, Sept 8 (Reuters) - Japan's Nikkei share average fell more than 1% on Friday, sending it to a first weekly loss in three, as the benchmark tracked Wall Street losses amid worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban.
Tech and industrial companies were among the biggest losers, with chip-making equipment giant Tokyo Electron 8035.T dropping 3.83% to become the Nikkei's .N225 biggest drag, shaving off 85 index points.
Mobile game and ad company CyberAgent 4751.T tumbled 6.83% to be the Nikkei's top percentage decliner.
The Nikkei slid 1.16% to 32,606.84, as of the close. That extended a 0.75% decline from Thursday when it also snapped an eight-day winning streak after touching a more than one-month peak of 33,322.45 early in the session.
For the week, the benchmark index slipped 0.32%.
The broader Topix .TOPX sagged 1.02% on Friday, also falling for a second day after marking a 33-year peak early in Thursday's session.
For the week, however, the Topix managed to hold on to a 0.40% gain.
"We're heading into the weekend, and if you consider that until Wednesday the Nikkei had seen eight straight days of gains, this is an environment ripe for some position adjustments and profit-taking," said Maki Sawada, a strategist at Nomura Securities.
Of the Nikkei's 225 components, 200 fell, 24 rose and one was flat.
Among Nikkei industry groups, only utilities - a traditionally defensive sector - advanced.
Overnight, a decline in new U.S. jobless claims raised speculation that the Fed might continue with monetary tightening.
Meanwhile, Apple AAPL.O, its suppliers and peers with large China exposure dragged on Wall Street indexes as Beijing eyed broadening the iPhone ban to state firms and agencies.
(Reporting by Kevin Buckland; Editing by Rashmi Aich and Sonia Cheema)
((Kevin.Buckland@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, Apple AAPL.O, its suppliers and peers with large China exposure dragged on Wall Street indexes as Beijing eyed broadening the iPhone ban to state firms and agencies. That extended a 0.75% decline from Thursday when it also snapped an eight-day winning streak after touching a more than one-month peak of 33,322.45 early in the session. "We're heading into the weekend, and if you consider that until Wednesday the Nikkei had seen eight straight days of gains, this is an environment ripe for some position adjustments and profit-taking," said Maki Sawada, a strategist at Nomura Securities.
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Meanwhile, Apple AAPL.O, its suppliers and peers with large China exposure dragged on Wall Street indexes as Beijing eyed broadening the iPhone ban to state firms and agencies. By Kevin Buckland TOKYO, Sept 8 (Reuters) - Japan's Nikkei share average fell more than 1% on Friday, sending it to a first weekly loss in three, as the benchmark tracked Wall Street losses amid worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban. The broader Topix .TOPX sagged 1.02% on Friday, also falling for a second day after marking a 33-year peak early in Thursday's session.
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Meanwhile, Apple AAPL.O, its suppliers and peers with large China exposure dragged on Wall Street indexes as Beijing eyed broadening the iPhone ban to state firms and agencies. By Kevin Buckland TOKYO, Sept 8 (Reuters) - Japan's Nikkei share average fell more than 1% on Friday, sending it to a first weekly loss in three, as the benchmark tracked Wall Street losses amid worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban. Tech and industrial companies were among the biggest losers, with chip-making equipment giant Tokyo Electron 8035.T dropping 3.83% to become the Nikkei's .N225 biggest drag, shaving off 85 index points.
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Meanwhile, Apple AAPL.O, its suppliers and peers with large China exposure dragged on Wall Street indexes as Beijing eyed broadening the iPhone ban to state firms and agencies. By Kevin Buckland TOKYO, Sept 8 (Reuters) - Japan's Nikkei share average fell more than 1% on Friday, sending it to a first weekly loss in three, as the benchmark tracked Wall Street losses amid worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban. Tech and industrial companies were among the biggest losers, with chip-making equipment giant Tokyo Electron 8035.T dropping 3.83% to become the Nikkei's .N225 biggest drag, shaving off 85 index points.
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13875.0
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2023-09-08 00:00:00 UTC
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GLOBAL MARKETS-Stocks dig in heels, dollar winning run best since 2014
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-dig-in-heels-dollar-winning-run-best-since-2014
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By Huw Jones
LONDON, Sept 8 (Reuters) - Global shares steadied on Friday as the dollar headed for its longest winning streak since 2014 on the back of a buoyant U.S. economy, with investors expecting central banks to stand pat on rates over the coming two weeks.
The tech sector was in focus after about $200 billion was wiped from Apple's AAPL.Omarket capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers.
The feisty dollar=USD weighed on copper and crude oil pricesLCOc1, with the health of China's slowing economy and its knock on effect on demand also a worry as the yuanCNY=CFXS fell to its weakest level since 2007.
"People think the U.S. economy is in better shape than anyone else and don't think interest rates are going to go up again," said Mike Hewson, chief market strategist at CMC Markets.
"Everything is geared towards the next couple of weeks, with European Central Bank, Federal Reserve and Bank of England meeting. I think they will all sit on their hands," Hewson said.
Euro zone government bond yields, however, were on track to end the week higher after hawkish remarks from ECB policymakers led money markets to increase their bets on a further rate hike next week.
Stocks stabilised after a near week of easing, with the MSCI All Country stock index .MIWD00000PUS flat at 677.56 points, down 1.5% for the week so far, but still up nearly 12% for the year.
In Europe, the STOXX index .STOXX of 600 companies was up 0.2%, though heading for a loss of 0.7% for the week.
S&P 500 futures ESc1 were little changed.
Patrick Spencer, vice chair of equities at Baird, said investors were trying to guess at what pace the Fed could begin cutting interest rates next year.
"Maybe you are going to see slightly higher for longer rates and they may not come down as quickly next year, and that in itself will slow consumption and consumer confidence," Spencer said.
YUAN AT 16-YEAR LOW
Dollar gains have pushed the Chinese yuan CNY=CFXS to a 16-year low and have also prompted a step up in rhetoric from Japanese policymakers growing uncomfortable with the yen's slide.
"Given challenges facing China, and more signs of a re-tightening of the U.S. jobs market, it is not surprising that the dollar is finding support, allowing the 'dollar juggernaut' to continue its rampaging run," analysts at ANZ Bank said in a note.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was flat, but down over 1% for the week. Hong Kong markets were closed for the morning due to storms lashing the city. Japan's Nikkei .N225 fell 1.1%.
Shares in Taiwan's TSMC 2330.TW, a big Apple supplier, eased 0.5%. Shares in South Korea's SK Hynix 000660.KS, whose chips some users have found in China's Huawei Technologies' new phone, fell 4%. Tokyo Electron 8035.T shares dropped about 4%. .KS.T
"China’s partial ban on Apple products put trade wars and U.S.-China decoupling back on the agenda," said Capital.com analyst Kyle Rodda. "The ban is narrow in scope ... however, it illustrated the two-way costs and risks of decoupling."
Tech stocks were already under pressure from U.S. yields that have been rising on bets that U.S. interest rates are likely to linger at 20-year highs, helping to push up the dollar.
In currencies, the euro EUR=EBS is down 0.5% this week and traded steady at $1.07110.
The yen JPY=EBS has found new 10-month lows and, at 147.45 per dollar is heading towards the vicinity of 150, where traders see high risks of authorities stepping in with support.
Japan's top currency diplomat Masato Kanda said on Wednesday that authorities willl not rule out any option to clamp down on "speculative" moves, while chief cabinet secretary Hirokazu Matsuno said the government was watching with "urgency".
Benchmark 10-year U.S. Treasury yields US10YT=RR were trading at 4.2383%, while two-year yields US2YT=RR were trading at 4.9443%.
Brent crude LCOc1 prices are up this week, but gains on recently robust U.S. data have been tempered by softening indicators of demand in Europe and China.
Brent futures traded down 0.16% at $89.79 a barrel.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
ESTRfwdDec https://tmsnrt.rs/3PF6WTv
(Additional reporting by Heekyong Yang in Seoul Editing by Shri Navaratnam and Tomasz Janowski)
((tom.westbrook@tr.com; +65 6973 8284;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The tech sector was in focus after about $200 billion was wiped from Apple's AAPL.Omarket capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers. By Huw Jones LONDON, Sept 8 (Reuters) - Global shares steadied on Friday as the dollar headed for its longest winning streak since 2014 on the back of a buoyant U.S. economy, with investors expecting central banks to stand pat on rates over the coming two weeks. Japan's top currency diplomat Masato Kanda said on Wednesday that authorities willl not rule out any option to clamp down on "speculative" moves, while chief cabinet secretary Hirokazu Matsuno said the government was watching with "urgency".
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The tech sector was in focus after about $200 billion was wiped from Apple's AAPL.Omarket capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers. By Huw Jones LONDON, Sept 8 (Reuters) - Global shares steadied on Friday as the dollar headed for its longest winning streak since 2014 on the back of a buoyant U.S. economy, with investors expecting central banks to stand pat on rates over the coming two weeks. Stocks stabilised after a near week of easing, with the MSCI All Country stock index .MIWD00000PUS flat at 677.56 points, down 1.5% for the week so far, but still up nearly 12% for the year.
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The tech sector was in focus after about $200 billion was wiped from Apple's AAPL.Omarket capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers. By Huw Jones LONDON, Sept 8 (Reuters) - Global shares steadied on Friday as the dollar headed for its longest winning streak since 2014 on the back of a buoyant U.S. economy, with investors expecting central banks to stand pat on rates over the coming two weeks. Euro zone government bond yields, however, were on track to end the week higher after hawkish remarks from ECB policymakers led money markets to increase their bets on a further rate hike next week.
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The tech sector was in focus after about $200 billion was wiped from Apple's AAPL.Omarket capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers. Stocks stabilised after a near week of easing, with the MSCI All Country stock index .MIWD00000PUS flat at 677.56 points, down 1.5% for the week so far, but still up nearly 12% for the year. Japan's Nikkei .N225 fell 1.1%.
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13876.0
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2023-09-08 00:00:00 UTC
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Warren Buffett's $690 Million Secret Portfolio Is Invested in 5 Artificial Intelligence (AI) Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-%24690-million-secret-portfolio-is-invested-in-5-artificial-intelligence-ai
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No game-changing innovation is garnering more attention on Wall Street this year than artificial intelligence (AI).
AI involves the use of software and systems to handle tasks typically assigned to humans. The key is the incorporation of machine learning (ML), which allows software and systems to "learn" and evolve over time. This evolution is expected to add $15.7 trillion to the global economy by 2030, according to a report by PwC.
The innovative potential and big-dollar figures behind AI have attracted plenty of attention from Wall Street's most successful money managers -- and that includes billionaire CEO Warren Buffett of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), along with his investment team. Nearly half of Berkshire's $365 billion portfolio is invested in three AI stocks.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
However, Berkshire's AI exposure doesn't stop there. Due to the acquisition of reinsurance company General Re 25 years ago, Berkshire Hathaway also owns specialty-investment firm New England Asset Management (NEAM). Although the Oracle of Omaha doesn't oversee NEAMs investment portfolio like he does Berkshire Hathaway's core investment portfolio, the $690 million NEAM holds in invested assets is, nevertheless, part of Buffett's company. Thus, it's Warren Buffett's secret portfolio.
Based on Form 13F filings, as of June 30, Warren Buffett's $690 million secret portfolio was holding shares in five artificial intelligence stocks. Market values are as of the closing bell on Sept. 1, 2023.
Alphabet (Class A shares, GOOGL): $4,124,064 in market value
The first AI stock you'll find in the Oracle of Omaha's hidden portfolio is Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the parent company of internet search engine Google and streaming platform YouTube, among its many subsidiaries. New England Asset Management owned 30,400 Class A shares (GOOGL) of Alphabet as of the end of June and had a market value north of $4.1 million as of Sept. 1, 2023.
Alphabet is utilizing AI in a variety of ways. Most notably, it's being deployed via Google to further enhance the quality of search results for the world's leading internet search engine. It's also being used on YouTube, the world's second most visited social platform, to remove content that violates its terms of service.
What may not be as visible is that Alphabet is leaning on AI solutions within Google Cloud, the company's cloud-infrastructure service offering. Google's AI-driven ML solutions allow businesses to build their own models that can analyze copious amounts of user data and make predictions as to how they'll respond to variable shifts (e.g., new product introductions, advertising changes, and so on).
Of course, the primary lure for Alphabet remains its world-leading search engine. Since April 2015, Google hasn't accounted for less than 90% of global internet search share. This veritable monopoly in searching makes Alphabet a predictable cash cow.
Taiwan Semiconductor Manufacturing Company: $2,080,467 in market value
A second AI stock you'll find in Warren Buffett's secret portfolio is Taiwan Semiconductor Manufacturing Company (NYSE: TSM), which is more commonly known as "TSMC." New England Asset Management held 22,325 shares of TSMC as of the end of the second quarter.
TSMC serves as the supply-chain backbone of the AI movement. It's the world's leading chip-fabrication company and is currently the key cog that manufactures the graphics processing units (GPUs) used to accelerate the processing speeds of high-compute data centers. Key AI-GPU players, including Nvidia (NASDAQ: NVDA) and Advanced Micro Devices, lean on TSMC for production.
Interestingly enough, Nvidia, which was once a holding within Buffett's secret portfolio, has maxed out sales of its A100 and H100 GPUs due to insufficient chip on wafer on substrate (CoWoS) capacity at TSMC. TSMC is in the process of doubling its CoWoS capacity, which should hopefully alleviate the AI-GPU supply-demand imbalance Nvidia is contending with.
Image source: Apple.
Apple: $2,384,165 in market value
The third artificial intelligence stock you'll find in Warren Buffett's $690 million secret portfolio is the least surprising of the bunch: tech stock Apple (NASDAQ: AAPL). Apple is the top holding, by a considerable amount, in the investment portfolio the Oracle of Omaha oversees at Berkshire Hathaway. As of June 30, NEAM held 12,584 shares of Apple.
Although AI has seemingly become a can't-miss trend over the past couple of months, it's been incorporated into Apple's physical products for more than a decade. Apple's introduction of voice-based digital assistant Siri in 2011, along with its constant evolutions of ML via autocorrect technology, are examples of how AI is changing the utility of its products.
The company's Vision Pro augmented/virtual reality headset, which is set to go on sale next year, is an even more front-and-center example of AI innovation and integration. Vision Pro leans on eye tracking and hand-motion tracking, among other features.
But as I've pointed out on numerous occasions, the lure of Apple tends to be its capital-return program and cash-flow consistency. Apple has repurchased more than $600 billion worth of its common stock since introducing a share-buyback program in 2013, and it's generated in excess of $113 billion in operating cash flow over the trailing-12-month period.
NXP Semiconductors: $9,374,714 in market value
A fourth AI stock Warren Buffett's under-the-radar portfolio is invested in is NXP Semiconductors (NASDAQ: NXPI). As of the end of June, NEAM was holding 44,650 shares of NXP, which is worth close to $9.4 million as of Sept. 1.
NXP's ties to AI can primarily be traced to the various processors and microcontrollers used in next-generation vehicles. In January, for example, NXP introduced its i.MX 95 family of applications processors, which are responsible for, among other things, ensuring that critical safety functions within next-gen vehicles are met.
NXP Semiconductors has processing applications beyond the automotive industry, too. Its ML and deep-learning solutions are used by Internet-of-Things (IoT) applications and within the industrial sector. This can include something as simple as securing a household WiFi connection or ensuring the security of industrial networks.
Whereas a number of AI stocks trade at nosebleed valuations, NXP Semiconductors offers its shareholders a discount forward price-to-earnings (P/E) ratio of just 14.
Broadcom: $13,074,712 in market value
The fifth and final AI stock held by Warren Buffett's $690 million secret portfolio is semiconductor-solutions specialist Broadcom (NASDAQ: AVGO). The 14,985 shares of Broadcom held as of the end of June -- nearly $13 million in market value -- makes it NEAM's largest bet on AI.
Arguably the most exciting AI solution unveiled to date by Broadcom is its Jericho3-AI chip. This networking chip, which was introduced by Broadcom in April, is capable of scaling connectivity to as many as 32,000 high-powered GPUs in AI-accelerated data centers. In short, Jericho3-AI is the middleman of sorts that's tasked with maximizing network utilization and virtually eliminating the potential for traffic congestion.
However, NEAM's investment team likely didn't put the fund's capital to work in Broadcom for Jericho3-AI. Rather, it probably has a lot to do with the 5G revolution. Broadcom generates a sizable percentage of its sales from supplying wireless chips and solutions used in next-generation smartphones. Wireless infrastructure being upgraded to support 5G download speeds has kick-started a device-replacement cycle that should continue through the midpoint of the decade, if not beyond.
Broadcom's backlog is nothing to sneeze at, either. As of July 31, 2022, the company was sitting on a $31 billion backlog. Even though CEO Hock Tan hasn't been as forthcoming with his company's backlog this year, booking orders nearly a year in advance signals that demand for the company's products remains robust.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Berkshire Hathaway, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and NXP Semiconductors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $2,384,165 in market value The third artificial intelligence stock you'll find in Warren Buffett's $690 million secret portfolio is the least surprising of the bunch: tech stock Apple (NASDAQ: AAPL). Due to the acquisition of reinsurance company General Re 25 years ago, Berkshire Hathaway also owns specialty-investment firm New England Asset Management (NEAM). Google's AI-driven ML solutions allow businesses to build their own models that can analyze copious amounts of user data and make predictions as to how they'll respond to variable shifts (e.g., new product introductions, advertising changes, and so on).
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Apple: $2,384,165 in market value The third artificial intelligence stock you'll find in Warren Buffett's $690 million secret portfolio is the least surprising of the bunch: tech stock Apple (NASDAQ: AAPL). Alphabet (Class A shares, GOOGL): $4,124,064 in market value The first AI stock you'll find in the Oracle of Omaha's hidden portfolio is Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the parent company of internet search engine Google and streaming platform YouTube, among its many subsidiaries. Taiwan Semiconductor Manufacturing Company: $2,080,467 in market value A second AI stock you'll find in Warren Buffett's secret portfolio is Taiwan Semiconductor Manufacturing Company (NYSE: TSM), which is more commonly known as "TSMC."
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Apple: $2,384,165 in market value The third artificial intelligence stock you'll find in Warren Buffett's $690 million secret portfolio is the least surprising of the bunch: tech stock Apple (NASDAQ: AAPL). Alphabet (Class A shares, GOOGL): $4,124,064 in market value The first AI stock you'll find in the Oracle of Omaha's hidden portfolio is Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the parent company of internet search engine Google and streaming platform YouTube, among its many subsidiaries. Taiwan Semiconductor Manufacturing Company: $2,080,467 in market value A second AI stock you'll find in Warren Buffett's secret portfolio is Taiwan Semiconductor Manufacturing Company (NYSE: TSM), which is more commonly known as "TSMC."
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Apple: $2,384,165 in market value The third artificial intelligence stock you'll find in Warren Buffett's $690 million secret portfolio is the least surprising of the bunch: tech stock Apple (NASDAQ: AAPL). Alphabet (Class A shares, GOOGL): $4,124,064 in market value The first AI stock you'll find in the Oracle of Omaha's hidden portfolio is Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the parent company of internet search engine Google and streaming platform YouTube, among its many subsidiaries. NXP Semiconductors has processing applications beyond the automotive industry, too.
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13877.0
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2023-09-08 00:00:00 UTC
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European stocks head towards longest losing run since 2016
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https://www.nasdaq.com/articles/european-stocks-head-towards-longest-losing-run-since-2016
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By Sruthi Shankar
Sept 8 (Reuters) - Early gains in European stocks faded on Friday, with the benchmark STOXX 600 heading for its eighth consecutive session of losses as investors grew nervous over the trajectory of U.S. interest rates and the outlook for the European economy.
The pan-European STOXX 600 index .STOXX fell 0.6%, putting it on course for its longest run of losses since November 2016.
"It would take a brave central bank to hike rates further when economic activity is collapsing in one the biggest economies in Europe."
Despite the weak data, inflation concerns and hawkish remarks from the European Central Bank (ECB) policymakers have led money markets to increase their bets on a further rate hike in next week's policy decision.
Traders have priced in an around 40% chance of a 25-basis-point (bps) hike, up from 20% last week.
U.S. inflation numbers are also due next week ahead of the Federal Reserve's policy meeting later this month, with policymakers widely seen holding interest rates unchanged.
STMicroelectronics STM.MI dipped 0.8% as a selloff in semiconductor stocks continued on worries about China imposing curbs on Apple's AAPL.O iPhones.
In the UK, stock of Round Hill Music Royalty Fund RHM.L, which owns the copyrights to work of major artists such as the Beatles, soared 64% after a $496 million buyout offer from Alchemy Copyrights.
Computacenter CCC.L jumped 6.5% after the IT service provider said its half-year adjusted profit before tax rose 8.8%.
($1 = 0.9339 euros)
(Reporting by Sruthi Shankar in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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STMicroelectronics STM.MI dipped 0.8% as a selloff in semiconductor stocks continued on worries about China imposing curbs on Apple's AAPL.O iPhones. Despite the weak data, inflation concerns and hawkish remarks from the European Central Bank (ECB) policymakers have led money markets to increase their bets on a further rate hike in next week's policy decision. U.S. inflation numbers are also due next week ahead of the Federal Reserve's policy meeting later this month, with policymakers widely seen holding interest rates unchanged.
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STMicroelectronics STM.MI dipped 0.8% as a selloff in semiconductor stocks continued on worries about China imposing curbs on Apple's AAPL.O iPhones. By Sruthi Shankar Sept 8 (Reuters) - Early gains in European stocks faded on Friday, with the benchmark STOXX 600 heading for its eighth consecutive session of losses as investors grew nervous over the trajectory of U.S. interest rates and the outlook for the European economy. "It would take a brave central bank to hike rates further when economic activity is collapsing in one the biggest economies in Europe."
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STMicroelectronics STM.MI dipped 0.8% as a selloff in semiconductor stocks continued on worries about China imposing curbs on Apple's AAPL.O iPhones. By Sruthi Shankar Sept 8 (Reuters) - Early gains in European stocks faded on Friday, with the benchmark STOXX 600 heading for its eighth consecutive session of losses as investors grew nervous over the trajectory of U.S. interest rates and the outlook for the European economy. Despite the weak data, inflation concerns and hawkish remarks from the European Central Bank (ECB) policymakers have led money markets to increase their bets on a further rate hike in next week's policy decision.
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STMicroelectronics STM.MI dipped 0.8% as a selloff in semiconductor stocks continued on worries about China imposing curbs on Apple's AAPL.O iPhones. By Sruthi Shankar Sept 8 (Reuters) - Early gains in European stocks faded on Friday, with the benchmark STOXX 600 heading for its eighth consecutive session of losses as investors grew nervous over the trajectory of U.S. interest rates and the outlook for the European economy. The pan-European STOXX 600 index .STOXX fell 0.6%, putting it on course for its longest run of losses since November 2016.
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13878.0
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2023-09-08 00:00:00 UTC
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US STOCKS-Futures fall on investor caution ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-on-investor-caution-ahead-of-inflation-data
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.22%, S&P 0.26%, Nasdaq 0.29%
Sept 8 (Reuters) - U.S. stock index futures were muted on Friday ahead of a fresh inflation reading next week against the backdrop of latest economic data fueling concerns of interest rates remaining higher for longer.
Stronger-than-expected services activity and a fall in weekly jobless claims have rekindled fears of elevated interest rates among market participants, dragging the S&P 500 .SPX and Nasdaq .IXIC lower on Thursday.
On the radar is Consumer Price Index for August due on Sept. 13, which will be followed by the Federal Reserve's policy decision on Sept. 20.
"While our base case is for no further hikes in this cycle, we expect economic uncertainty to keep equity markets volatile and range-bound in the coming months," said Mark Haefele, chief investment officer at UBS Global Wealth Management.
Money markets see a 93% chance of interest rates staying at current levels in September, while pricing in a 55.4% chance of a pause in rate hikes in the November meeting, according to CME FedWatch Tool.
Shares of Apple AAPL.O were flat in premarket trading after a two-day selloff that weighed on U.S. stocks following news that Beijing has ordered central government employees in recent weeks to stop using iPhones at work.
Another report on Friday said China's restrictions are expanding to local governments and state-owned companies.
Morgan Stanley said the curbs will at most cause a 4% slide in revenue, suggesting the recent selloff in the iPhone-maker's shares was "overdone."
At 5:31 a.m. ET, Dow e-minis 1YMcv1 were down 77 points, or 0.22%, S&P 500 e-minis EScv1 were down 11.75 points, or 0.26%, and Nasdaq 100 e-minis NQcv1 were down 45 points, or 0.29%.
Investors also digested mixed commentary from several Fed speakers on Thursday.
New York Fed President John Williams kept his options open over future interest rate policy, Dallas Fed President Lorie Logan said while it "could be appropriate" to skip a rate hike in the upcoming meeting, more policy tightening may be needed.
More comments from policymakers are scheduled later in the day, including from Fed Vice Chair for Supervision Michael Barr.
Among individual share moves, Faraday Future Intelligent Electric FFIE.O jumped 14.4% before the bell. The electric vehicle maker alleged efforts to spread misinformation and manipulate market sentiment.
DocuSignDOCU.O added 2.7% as the e-Signature product provider beat second-quarter results estimates and raised its annual revenue forecast.
(Reporting by Shristi Achar A in Bengaluru; Editing by Arun Koyyur)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O were flat in premarket trading after a two-day selloff that weighed on U.S. stocks following news that Beijing has ordered central government employees in recent weeks to stop using iPhones at work. Stronger-than-expected services activity and a fall in weekly jobless claims have rekindled fears of elevated interest rates among market participants, dragging the S&P 500 .SPX and Nasdaq .IXIC lower on Thursday. "While our base case is for no further hikes in this cycle, we expect economic uncertainty to keep equity markets volatile and range-bound in the coming months," said Mark Haefele, chief investment officer at UBS Global Wealth Management.
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Shares of Apple AAPL.O were flat in premarket trading after a two-day selloff that weighed on U.S. stocks following news that Beijing has ordered central government employees in recent weeks to stop using iPhones at work. Futures down: Dow 0.22%, S&P 0.26%, Nasdaq 0.29% Sept 8 (Reuters) - U.S. stock index futures were muted on Friday ahead of a fresh inflation reading next week against the backdrop of latest economic data fueling concerns of interest rates remaining higher for longer. ET, Dow e-minis 1YMcv1 were down 77 points, or 0.22%, S&P 500 e-minis EScv1 were down 11.75 points, or 0.26%, and Nasdaq 100 e-minis NQcv1 were down 45 points, or 0.29%.
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Shares of Apple AAPL.O were flat in premarket trading after a two-day selloff that weighed on U.S. stocks following news that Beijing has ordered central government employees in recent weeks to stop using iPhones at work. Futures down: Dow 0.22%, S&P 0.26%, Nasdaq 0.29% Sept 8 (Reuters) - U.S. stock index futures were muted on Friday ahead of a fresh inflation reading next week against the backdrop of latest economic data fueling concerns of interest rates remaining higher for longer. Money markets see a 93% chance of interest rates staying at current levels in September, while pricing in a 55.4% chance of a pause in rate hikes in the November meeting, according to CME FedWatch Tool.
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Shares of Apple AAPL.O were flat in premarket trading after a two-day selloff that weighed on U.S. stocks following news that Beijing has ordered central government employees in recent weeks to stop using iPhones at work. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.22%, S&P 0.26%, Nasdaq 0.29% Sept 8 (Reuters) - U.S. stock index futures were muted on Friday ahead of a fresh inflation reading next week against the backdrop of latest economic data fueling concerns of interest rates remaining higher for longer.
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13879.0
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2023-09-08 00:00:00 UTC
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GLOBAL MARKETS-Dollar has 8th straight week of gains; U.S. stocks edge up
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AAPL
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https://www.nasdaq.com/articles/global-markets-dollar-has-8th-straight-week-of-gains-u.s.-stocks-edge-up
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Sept 8 (Reuters) - The U.S. dollar index registered an eighth straight week of gains on Friday while global stock indexes ended slightly higher on the day ahead of key U.S. inflation data next week.
In contrast, China's onshore yuan CNY=CFXS ended its domestic session at its weakest since 2007 amid concern about China's slowing economy.
Strong U.S. economic data this week have left some investors worried that even if the Federal Reserve leaves rates unchanged this month, they could remain high for longer than anticipated.
Investors are waiting for the U.S. Consumer Price Index reading for August, due Wednesday, especially with oil prices rising.
"The dollar has been higher on the back of obviously stronger U.S. data ..., suggesting that the Fed perhaps has another rate hike before the end of the year," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
Wall Street's three major stock indexes ended barely higher, with shares of Apple AAPL.O up just 0.3%. Apple had fallen in the last two sessions on news reports of China curbing iPhone use by state employees.
The Dow Jones Industrial Average .DJI rose 75.86 points, or 0.22%, to 34,576.59, the S&P 500 .SPX gained 6.35 points, or 0.14%, at 4,457.49 and the Nasdaq Composite .IXIC added 12.69 points, or 0.09%, at 13,761.53.
All three major U.S. stock indexes were lower for the week.
The pan-European STOXX 600 index .STOXXwas up 0.2%, breaking a seven-day string of losses, while MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.01%.
Dollar gains have also prompted a step up in rhetoric from Japanese policymakers growing uncomfortable with the yen's slide.
Japan's top currency diplomat Masato Kanda said this week authorities will not rule out any option to clamp down on "speculative" moves, while chief cabinet secretary Hirokazu Matsuno said the government was watching with "urgency."
The Japanese yen JPY=EBS was last at about 147.82 per dollar and on the weaker side of the key 145-level that prompted Japan intervention last year.
Longer-dated U.S. Treasury yields slipped as investors digested recent comments from several Fed officials, including some comments that underpinned the view the U.S. central bank may be able to pause in its rate hike cycle.
The yield on the benchmark U.S. 10-year Treasury note US10YR=RR shed 1 basis point to 4.256%. The 10-year yield is up about 9 basis points for the week.
In energy, oil prices rose to a nine-month high as U.S. diesel futures rose and as investors worried about tight oil supplies.
Brent LCOc1 futures rose 73 cents, or 0.8%, to settle at $90.65 a barrel, while U.S. crude
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
ESTRfwdDec https://tmsnrt.rs/3PF6WTv
Fund flows: U.S. domiciled equities, bonds and money market funds Fund flows: U.S. domiciled equities, bonds and money market funds https://tmsnrt.rs/3KLA34K
(Additional reporting by Huw Jones in London and Heekyong Yang in Seoul; Editing by Shri Navaratnam, Tomasz Janowski, David Evans and Richard Chang)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wall Street's three major stock indexes ended barely higher, with shares of Apple AAPL.O up just 0.3%. Strong U.S. economic data this week have left some investors worried that even if the Federal Reserve leaves rates unchanged this month, they could remain high for longer than anticipated. "The dollar has been higher on the back of obviously stronger U.S. data ..., suggesting that the Fed perhaps has another rate hike before the end of the year," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
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Wall Street's three major stock indexes ended barely higher, with shares of Apple AAPL.O up just 0.3%. By Caroline Valetkevitch NEW YORK, Sept 8 (Reuters) - The U.S. dollar index registered an eighth straight week of gains on Friday while global stock indexes ended slightly higher on the day ahead of key U.S. inflation data next week. In energy, oil prices rose to a nine-month high as U.S. diesel futures rose and as investors worried about tight oil supplies.
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Wall Street's three major stock indexes ended barely higher, with shares of Apple AAPL.O up just 0.3%. By Caroline Valetkevitch NEW YORK, Sept 8 (Reuters) - The U.S. dollar index registered an eighth straight week of gains on Friday while global stock indexes ended slightly higher on the day ahead of key U.S. inflation data next week. "The dollar has been higher on the back of obviously stronger U.S. data ..., suggesting that the Fed perhaps has another rate hike before the end of the year," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
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Wall Street's three major stock indexes ended barely higher, with shares of Apple AAPL.O up just 0.3%. All three major U.S. stock indexes were lower for the week. The yield on the benchmark U.S. 10-year Treasury note US10YR=RR shed 1 basis point to 4.256%.
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13880.0
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2023-09-08 00:00:00 UTC
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MORNING BID EUROPE-Apple and dollar roil markets
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AAPL
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https://www.nasdaq.com/articles/morning-bid-europe-apple-and-dollar-roil-markets
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nan
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nan
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A look at the day ahead in European and global markets from Ankur Banerjee
Investors probably can't wait for the week to end, with worries over China's curbs on iPhones and the dollar's resurgence in the past few weeks casting a long shadow over the markets.
Apple AAPL.O has seen about $200 billion (that's eleven zeros in total) wiped from its market capitalisation in two days on reports of China curbing iPhone use by state employees.
The broader U.S. tech sector also took a hit, while shares of several major Apple suppliers in Asia slid on Friday. Nearly a fifth of Apple's revenue is generated in China, where thousands of workers are employed by the company and its suppliers.
It all comes ahead of an Apple event next week where the $2.78 trillion company is expected to unveil its iPhone 15 line-up, as well as new smartwatches.
Meanwhile, China's Huawei Technologies on Friday started presales for its Mate 60 Pro+ smartphone, adding a new version to a series that has captured global attention for revealing the Chinese tech firm's success in beating back against U.S. sanctions.
Richly valued tech stocks have also felt the weight of rising U.S. yields as traders bet that elevated interest rates are here to stay for a while longer.
That has resulted in the dollar's rampaging run in the past few weeks. Against a basket of currencies, the dollar =USD is set to clock an eighth straight week of gains. The last time it had a similar run was in 2014.FRX/
A Reuters poll of forex strategists suggests that the dollar's strength will be difficult to overcome for most major currencies by the end of the year.
Demand for the U.S. currency has made life difficult for most other currencies, with the onshore yuan CNY=CFXS breaching a 16-year low and the yen JPY-EBS straddling the weaker side of the psychologically important 145 per dollar line, keeping traders alert for possible intervention.
And so with Europe waking up, investors are likely to have a volatile end to the week, with futures indicating a mixed open.
The pan-European STOXX 600 index .STOXX has fallen for seven straight days, its worst string of losses since February 2018.
Investor focus will also be on debt-ridden French supermarket retailer Casino CASP.PA after the markets operator Euronext ENX.PA said the retailer will be excluded from Paris' SBF-120 equity index .SBF120 of major companies.
Key developments that could influence markets on Friday:
Economic events: Germany's inflation data for August
US Dollar Index https://tmsnrt.rs/3Z5lDCl
(Reporting by Ankur Banerjee; Editing by Kim Coghill)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O has seen about $200 billion (that's eleven zeros in total) wiped from its market capitalisation in two days on reports of China curbing iPhone use by state employees. Meanwhile, China's Huawei Technologies on Friday started presales for its Mate 60 Pro+ smartphone, adding a new version to a series that has captured global attention for revealing the Chinese tech firm's success in beating back against U.S. sanctions. The last time it had a similar run was in 2014.FRX/ A Reuters poll of forex strategists suggests that the dollar's strength will be difficult to overcome for most major currencies by the end of the year.
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Apple AAPL.O has seen about $200 billion (that's eleven zeros in total) wiped from its market capitalisation in two days on reports of China curbing iPhone use by state employees. A look at the day ahead in European and global markets from Ankur Banerjee Investors probably can't wait for the week to end, with worries over China's curbs on iPhones and the dollar's resurgence in the past few weeks casting a long shadow over the markets. Key developments that could influence markets on Friday: Economic events: Germany's inflation data for August US Dollar Index https://tmsnrt.rs/3Z5lDCl (Reporting by Ankur Banerjee; Editing by Kim Coghill) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O has seen about $200 billion (that's eleven zeros in total) wiped from its market capitalisation in two days on reports of China curbing iPhone use by state employees. A look at the day ahead in European and global markets from Ankur Banerjee Investors probably can't wait for the week to end, with worries over China's curbs on iPhones and the dollar's resurgence in the past few weeks casting a long shadow over the markets. Demand for the U.S. currency has made life difficult for most other currencies, with the onshore yuan CNY=CFXS breaching a 16-year low and the yen JPY-EBS straddling the weaker side of the psychologically important 145 per dollar line, keeping traders alert for possible intervention.
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Apple AAPL.O has seen about $200 billion (that's eleven zeros in total) wiped from its market capitalisation in two days on reports of China curbing iPhone use by state employees. A look at the day ahead in European and global markets from Ankur Banerjee Investors probably can't wait for the week to end, with worries over China's curbs on iPhones and the dollar's resurgence in the past few weeks casting a long shadow over the markets. Nearly a fifth of Apple's revenue is generated in China, where thousands of workers are employed by the company and its suppliers.
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13881.0
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2023-09-08 00:00:00 UTC
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China stocks fall as investor optimism wanes, yuan weakens
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AAPL
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https://www.nasdaq.com/articles/china-stocks-fall-as-investor-optimism-wanes-yuan-weakens
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nan
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nan
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SHANGHAI, Sept 8 (Reuters) - China stocks fell on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further.
Meanwhile, the Hong Kong stock exchange delayed trading in both the securities and the derivatives markets on Friday morning due to a black rainstorm warning.
** By the midday recess, the blue-chip CSI 300 Index .CSI300 was down 0.8%, while the Shanghai Composite Index .SSEC lost 0.4%.
** Trade numbers on Thursday showed a possible stabilisation in China's downturn, but economists said China's economy is still at risk of missing Beijing's annual growth target of about 5%. Some of the recent easing measures may have little impact on the slowing economy, they added.
** China's yuan weakened to the lowest level since December 2007 on Friday, as the widening services trade deficit and yield gap with other economies, particularly the United States, affected capital flows and trade.
** Most sectors fell, with shares in property developers .CSI000952, energy companies .CSIEN, and media firms .CSI399971 down between 1% and 2.5%.
** Semiconductor shares .CSIH30184 rose 0.8% on the launch of Huawei's Mate 60 Pro+ smartphone, which captured global attention for revealing the Chinese tech firm's success in beating back U.S. sanctions.
** Shenzhen Rongda Photosensitive & Technology Co 300576.SZ jumped nearly 10% to lead the gains, while Semiconductor Manufacturing International Corp (SMIC) 688981 added 0.7%.
** Shares of Apple AAPL.O suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. Luxshare Precision Industry Co 002475.SZ dropped 3.4%.
(Reporting by Shanghai Newsroom; Editing by Janane Venkatraman)
((Jason.Xue@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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** Shares of Apple AAPL.O suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. Meanwhile, the Hong Kong stock exchange delayed trading in both the securities and the derivatives markets on Friday morning due to a black rainstorm warning. ** Semiconductor shares .CSIH30184 rose 0.8% on the launch of Huawei's Mate 60 Pro+ smartphone, which captured global attention for revealing the Chinese tech firm's success in beating back U.S. sanctions.
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** Shares of Apple AAPL.O suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. SHANGHAI, Sept 8 (Reuters) - China stocks fell on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further. ** China's yuan weakened to the lowest level since December 2007 on Friday, as the widening services trade deficit and yield gap with other economies, particularly the United States, affected capital flows and trade.
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** Shares of Apple AAPL.O suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. SHANGHAI, Sept 8 (Reuters) - China stocks fell on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further. ** Trade numbers on Thursday showed a possible stabilisation in China's downturn, but economists said China's economy is still at risk of missing Beijing's annual growth target of about 5%.
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** Shares of Apple AAPL.O suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. SHANGHAI, Sept 8 (Reuters) - China stocks fell on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further. ** By the midday recess, the blue-chip CSI 300 Index .CSI300 was down 0.8%, while the Shanghai Composite Index .SSEC lost 0.4%.
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13882.0
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2023-09-08 00:00:00 UTC
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Dow Movers: BA, AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-ba-aapl-2
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nan
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nan
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In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. Year to date, Apple registers a 38.6% gain.
And the worst performing Dow component thus far on the day is Boeing, trading down 1.6%. Boeing is showing a gain of 11.7% looking at the year to date performance.
Two other components making moves today are Verizon Communications, trading down 0.9%, and Microsoft, trading up 1.2% on the day.
VIDEO: Dow Movers: BA, AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. And the worst performing Dow component thus far on the day is Boeing, trading down 1.6%.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. Year to date, Apple registers a 38.6% gain.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. And the worst performing Dow component thus far on the day is Boeing, trading down 1.6%.
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VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Boeing, trading down 1.6%. Boeing is showing a gain of 11.7% looking at the year to date performance.
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13883.0
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2023-09-08 00:00:00 UTC
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GLOBAL MARKETS-Stocks stagger as 'dollar juggernaut' on a roll
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-stagger-as-dollar-juggernaut-on-a-roll
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nan
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nan
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By Tom Westbrook
SINGAPORE, Sept 8 (Reuters) - Asia's stockmarkets dipped on Friday, with tech shares tumbling on deepening Sino-U.S. tensions, while the dollar was set to seal its longest winning streak in nine years as investors braced for U.S. interest rates to stay higher for longer.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2% and is down 1.4% for the week. Hong Kong markets were closed for the morning due to storms lashing the city. Japan's Nikkei .N225 fell 1.37%.
European stocks looked set for a higher open, with futures for Eurostoxx 50 STXEc1 up 0.21%, and those for the German DAX FDXc1 up 0.18% and FTSE FFIc1 down 0.07%.
All eyes will be on European Apple AAPL.O suppliers after about $200 billion was wiped from the company's market capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers in Asia.
Shares in Taiwan's TSMC 2330.TW, a big Apple supplier, eased 0.37%. Shares in South Korea's SK Hynix 000660.KS, whose chips some users have found in China's Huawei Technologies' new phone, fell 4%. Tokyo Electron 8035.T shares dropped about 4%. .KS.T
"China’s partial ban on Apple products put trade wars and U.S.-China decoupling back on the agenda," said Capital.com analyst Kyle Rodda. "The ban is narrow in scope... however, it illustrated the two-way costs and risks of de-coupling."
U.S. suppliers' shares had fallen overnight and helped drag the S&P 500 .SPX 0.3% lower and the Nasdaq .IXIC down by 0.9%. S&P 500 futures ESc1 were little change in Asia on Friday.
The selling also came while tech stocks have been under extra pressure from U.S. yields that have been rising on bets that U.S. interest rates are likely to linger at 20-year highs.
That in turn has unleashed the dollar, which is up for an eighth straight week against a basket of currencies =USD, a rally that has carried the U.S. currency index more than 5% higher.
Dollar gains have pushed the Chinese yuan CNY=CFXS to a 16-year low and have prompted a step up in rhetoric from Japanese policymakers growing uncomfortable with the yen's slide.
"Given challenges facing China, and more signs of a re-tightening of the U.S. jobs market, it is not surprising that the dollar is finding support, allowing the 'dollar juggernaut' to continue its rampaging run," analysts at ANZ Bank said in a note.
The euro EUR=EBS is down 0.5% this week and traded steady at $1.0715 in Asia with investors reckoning a hold is more likely than a hike from the European Central Bank next week. 0#ECBWATCH
The yen JPY=EBS has found new 10-month lows and, at 147.19 per dollar is heading towards the vicinity of 150, where traders see high risks of authorities stepping in with support.
Japan's top currency diplomat Masato Kanda said on Wednesday that authorities won't rule out any option to clamp down on "speculative" moves, while chief cabinet secretary Hirokazy Matsuno said the government was watching with "urgency".
The Australian dollar AUD=D3 is down more than 1% on the week and traded at $0.6384 on Friday. Benchmark 10-year U.S. Treasury yields US10YT=RR are up over 5 basis points to 4.22% this week. Two-year yields US2YT=RR are up 6 bps to 4.93%.
Brent crude LCOc1 prices are up this week, but gains on recently robust U.S. data have been tempered by softening indicators of demand in Europe and China. Brent futures were last steady at $89.33 a barrel, down 0.66% on the day, but up nearly 1% for the week.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Additional reporting by Heekyong Yang in Seoul Editing by Shri Navaratnam)
((tom.westbrook@tr.com; +65 6973 8284;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All eyes will be on European Apple AAPL.O suppliers after about $200 billion was wiped from the company's market capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers in Asia. By Tom Westbrook SINGAPORE, Sept 8 (Reuters) - Asia's stockmarkets dipped on Friday, with tech shares tumbling on deepening Sino-U.S. tensions, while the dollar was set to seal its longest winning streak in nine years as investors braced for U.S. interest rates to stay higher for longer. "Given challenges facing China, and more signs of a re-tightening of the U.S. jobs market, it is not surprising that the dollar is finding support, allowing the 'dollar juggernaut' to continue its rampaging run," analysts at ANZ Bank said in a note.
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All eyes will be on European Apple AAPL.O suppliers after about $200 billion was wiped from the company's market capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers in Asia. The euro EUR=EBS is down 0.5% this week and traded steady at $1.0715 in Asia with investors reckoning a hold is more likely than a hike from the European Central Bank next week. 0#ECBWATCH The yen JPY=EBS has found new 10-month lows and, at 147.19 per dollar is heading towards the vicinity of 150, where traders see high risks of authorities stepping in with support.
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All eyes will be on European Apple AAPL.O suppliers after about $200 billion was wiped from the company's market capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers in Asia. By Tom Westbrook SINGAPORE, Sept 8 (Reuters) - Asia's stockmarkets dipped on Friday, with tech shares tumbling on deepening Sino-U.S. tensions, while the dollar was set to seal its longest winning streak in nine years as investors braced for U.S. interest rates to stay higher for longer. The euro EUR=EBS is down 0.5% this week and traded steady at $1.0715 in Asia with investors reckoning a hold is more likely than a hike from the European Central Bank next week.
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All eyes will be on European Apple AAPL.O suppliers after about $200 billion was wiped from the company's market capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of suppliers in Asia. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2% and is down 1.4% for the week. S&P 500 futures ESc1 were little change in Asia on Friday.
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13884.0
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2023-09-08 00:00:00 UTC
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Thematic Trends Post-Lockdown: What Worked and What Didn’t
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AAPL
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https://www.nasdaq.com/articles/thematic-trends-post-lockdown%3A-what-worked-and-what-didnt
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nan
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nan
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After months of lockdown in 2020-2021, there has undoubtedly been a lasting effect on the economy. Although there were a lot of negatives, several trends that were popularized by the pandemic became popular investment opportunities. While some have proven to be long-term trends, some have faded into the background. This note looks at four thematic trends post-lockdown including e-commerce, remote work, streaming media, and the metaverse.
1. E-commerce – The Future of Retail
While the pandemic pulled forward e-commerce growth significantly, this was part of a longer trend that started years ago. The U.S. Census Bureau’s e-commerce data goes as far back as 4Q of 1999. And since then, e-commerce growth has outpaced total retail sales growth each quarter (even throughout the Great Recession). But because of the pandemic, growth rates increased to ~50% rates in 2020. And when those rates were lapped in 2021, they finally fell below total retail sales. This deceleration lasted from 2Q21 to 2Q22. Since then, e-commerce has grown at a much faster pace — returning closer to its normal rate of acceleration.
Growth has been mostly attributed to clothing and general goods (i.e., low volume, high replacement goods), in addition to non-store retailers like Amazon (see previous note). Furniture and home goods saw strength during the pandemic as more people stayed at home and decided to renovate/redecorate their homes. That grew weaker after the initial surge. But we could potentially see strength re-emerge as more people stay in smaller homes for longer due to higher home prices and higher interest rates.
The e-commerce industry earns more revenue each year. But how do investors capture the growth besides individual stocks like Amazon? Several e-commerce ETFs exist, most of which are diversified ETFs that hold online e-commerce companies and shipping companies. Investors can also access the trend through broader retail or consumer discretionary ETFs. Most large retailers have been integrating e-commerce into their businesses and will benefit from its long-term growth.
2. Job Flexibility – Remote Work and the Gig Economy
After months of remote work, many large offices have implemented return-to-office initiatives including full-time back in the office. But there is still a large portion of the workforce that works either remotely or on a hybrid schedule. Before the pandemic, the amount of remote jobs was increasing very slowly. But after the pandemic pulled forward, the trend has stuck around post-pandemic. This is partially due to greater technology capabilities and the number of computer-based employees in finance, technology, and other office roles. On top of higher commercial rent, many companies have been willing to save on office leases, especially in large cities. Data from the Survey of Working Arrangements and Attitudes (SWAA) cites that 4.7% of people worked remotely at least some of the time pre-pandemic versus a peak of 61.5% during the pandemic. The number is 30.9% post-pandemic. This data also becomes apparent when you look at commuter data (see chart below). Highway passenger miles are still trending below pre-pandemic levels. Transit ridership is significantly lower with fewer workers commuting to work. This means less time on the road and more time on the internet, contributing to e-commerce growth and greater cloud computing needs.
While many people enjoy the independence and flexibility of remote work, not everyone can land a remote job. Workers are turning to the gig economy, which expanded significantly during the pandemic. Many customers turned to app-based delivery services like Uber Eats (UBER), DoorDash (DASH), and Grubhub (GRUB) when restaurants weren’t open for dining. Customers also started using grocery delivery or curbside pickup from Amazon Fresh (AMZN), Walmart (WMT), or Instacart (to trade under CART after its IPO) to avoid crowded grocery stores. Although the industry has grown crowded and many customers have returned to restaurants and grocery stores, Instacart’s upcoming IPO illustrates that there’s still room for growth, particularly for players with better technology and advertising opportunities. According to Instacart, only 12% of grocery sales are made online and they predict that number could double over time.
3. Streaming and Gaming – Next-Gen Media and Communications
While people still value going to the movie theaters for special events (judging by the record-breaking numbers for Barbie and Oppenheimer weekend), watching movies at home has stayed a popular choice post-pandemic lockdowns. Consumers are now benefitting from shorter theatrical windows and possibly too many streaming choices, like Netflix (NFLX), Max (WBD), and Disney Plus and Hulu (DIS) which have been growing market share relative to both movie theaters and traditional cable and satellite TV. Even after lockdowns ended, there has still been a strong correlation with more devices and stronger and faster internet speeds. But these days consumers also value choice — including having a large library of movies or TV series to choose from rather than watching set programming on live TV.
On a similar note, the video gaming industry has also evolved to become more interactive and a social experience. All major consoles now offer online gaming in addition to the popularity of streaming video game services like Twitch (owned by Amazon). Online gaming also allows the user to access a broad catalog of games through a single source.
4. Metaverse – (Maybe) The Next Generation of Internet
The concept of the metaverse has been around for years. But it became mainstream in 2021 when investors were buzzing about crypto, blockchain, and NFTs. Since everyone was under lockdown, the concept of the Metaverse opened up many new possibilities — virtual concerts, advanced interactive worlds, and fun social media avatars. Its popularity skyrocketed toward the end of 2021 when Facebook announced its name change to Meta. But the metaverse remained too conceptual — few pure-play public companies could prove themselves as a major player in the industry. Most metaverse companies (like Roblox) are essentially still video game companies. So while the metaverse may be a bigger deal in the future, these ETFs may have been early to the game. If you’re a believer in the metaverse, it may not hurt to have a small allocation in a metaverse ETF. The Roundhill Ball Metaverse ETF (METV) has performed about in line with broader tech and communications sector ETFs (~40% YTD) partially due to large holdings in Apple (AAPL), Nvidia (NVDA), and Meta Platforms (META).
VettaFi will host its Equity Symposium webcast on September 21, 2023, at 11 AM ET/8 AM PT. Free registration is available here. This event is eligible for CE credits.
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Roundhill Ball Metaverse ETF (METV) has performed about in line with broader tech and communications sector ETFs (~40% YTD) partially due to large holdings in Apple (AAPL), Nvidia (NVDA), and Meta Platforms (META). Although the industry has grown crowded and many customers have returned to restaurants and grocery stores, Instacart’s upcoming IPO illustrates that there’s still room for growth, particularly for players with better technology and advertising opportunities. Consumers are now benefitting from shorter theatrical windows and possibly too many streaming choices, like Netflix (NFLX), Max (WBD), and Disney Plus and Hulu (DIS) which have been growing market share relative to both movie theaters and traditional cable and satellite TV.
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The Roundhill Ball Metaverse ETF (METV) has performed about in line with broader tech and communications sector ETFs (~40% YTD) partially due to large holdings in Apple (AAPL), Nvidia (NVDA), and Meta Platforms (META). This note looks at four thematic trends post-lockdown including e-commerce, remote work, streaming media, and the metaverse. E-commerce – The Future of Retail While the pandemic pulled forward e-commerce growth significantly, this was part of a longer trend that started years ago.
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The Roundhill Ball Metaverse ETF (METV) has performed about in line with broader tech and communications sector ETFs (~40% YTD) partially due to large holdings in Apple (AAPL), Nvidia (NVDA), and Meta Platforms (META). E-commerce – The Future of Retail While the pandemic pulled forward e-commerce growth significantly, this was part of a longer trend that started years ago. Job Flexibility – Remote Work and the Gig Economy After months of remote work, many large offices have implemented return-to-office initiatives including full-time back in the office.
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The Roundhill Ball Metaverse ETF (METV) has performed about in line with broader tech and communications sector ETFs (~40% YTD) partially due to large holdings in Apple (AAPL), Nvidia (NVDA), and Meta Platforms (META). E-commerce – The Future of Retail While the pandemic pulled forward e-commerce growth significantly, this was part of a longer trend that started years ago. Job Flexibility – Remote Work and the Gig Economy After months of remote work, many large offices have implemented return-to-office initiatives including full-time back in the office.
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13885.0
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2023-09-08 00:00:00 UTC
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US STOCKS-Wall St rises as megacaps gain, yields slip ahead of key inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-as-megacaps-gain-yields-slip-ahead-of-key-inflation-data
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 8 (Reuters) - Wall Street's main indexes rose on Friday as megacaps including Apple and Microsoft gained ahead of a fresh inflation reading next week that will provide further clues on the U.S. interest rate trajectory.
U.S. Treasury yields edged lower on Friday, helping boost major growth stocks, with Microsoft MSFT.O leading gains, up 1.9%, and Meta Platforms META.O advancing nearly 1%.
Shares of Apple AAPL.O rose 1.2% after a two-day selloff following news that Beijing had ordered its central government employees in recent weeks to stop using iPhones at workplaces.
Wall Street analysts see a small hit to Apple's revenue this year from the curbs, with Morgan Stanley saying the worst case scenario was a 4% drop.
The S&P 500 information technology .SPLRCT sector rose 0.6% while energy stocks .SPNY rose 1.3% to their highest level in over seven months, tracking an uptick in crude prices. O/R
The S&P 500 and the Nasdaq have shed more than 1% this week on concerns the Federal Reserve could keep interest rates higher for longer following stronger-than-expected services activity data and a fall in weekly jobless claims.
The Consumer Price Index (CPI) reading for August is due on Sept. 13, while the Federal Reserve's policy decision is scheduled for Sept. 20.
"My expectation is that the CPI print could come in higher than expected (with) the price of oil pushing higher," said Phil Blancato, chief executive officer of Ladenburg Thalmann Asset Management.
"We have a problem where ultimately the Fed may be pushed into a corner, and while they might take a pause because of the lag effect, I don't think they're done."
Traders' odds for interest rates staying at current levels in September stood at 95%, while they have priced in a near 55% chance for a pause in rate hikes in the November meeting, according to CME FedWatch Tool.
Mixed comments from Fed officials have also added to uncertainty about the central bank's next policy moves.
New York Fed President John Williams kept his options open over future interest rate path while Dallas Fed President Lorie Logan said though it "could be appropriate" to skip a rate hike in the upcoming meeting, more policy tightening might be needed.
At 11:47 a.m. ET, the Dow Jones Industrial Average .DJI was up 101.13 points, or 0.29%, at 34,601.86, the S&P 500 .SPX was up 16.12 points, or 0.36%, at 4,467.26, and the Nasdaq Composite .IXIC was up 65.25 points, or 0.47%, at 13,814.08.
Among other stocks, KrogerKR.N rose 3.2% after the retailer beat estimates for quarterly adjusted profit.
Gilead SciencesGILD.O added 3.1% after BofA Securities upgraded the drugmaker to "buy" from "neutral."
GameStopGME.N fell 6.6% on a report that the U.S. Securities and Exchange Commission was investigating the videogame retailer's chairman, Ryan Cohen.
Advancing issues outnumbered decliners by a 1.64-to-1 ratio on the NYSE and by a 1.01-to-1 ratio on the Nasdaq.
The S&P 500 recorded 13 new 52-week highs and 14 new lows, while the Nasdaq posted 31 new highs and 160 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com; amruta.khandekar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O rose 1.2% after a two-day selloff following news that Beijing had ordered its central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes rose on Friday as megacaps including Apple and Microsoft gained ahead of a fresh inflation reading next week that will provide further clues on the U.S. interest rate trajectory. U.S. Treasury yields edged lower on Friday, helping boost major growth stocks, with Microsoft MSFT.O leading gains, up 1.9%, and Meta Platforms META.O advancing nearly 1%.
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Shares of Apple AAPL.O rose 1.2% after a two-day selloff following news that Beijing had ordered its central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes rose on Friday as megacaps including Apple and Microsoft gained ahead of a fresh inflation reading next week that will provide further clues on the U.S. interest rate trajectory. O/R The S&P 500 and the Nasdaq have shed more than 1% this week on concerns the Federal Reserve could keep interest rates higher for longer following stronger-than-expected services activity data and a fall in weekly jobless claims.
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Shares of Apple AAPL.O rose 1.2% after a two-day selloff following news that Beijing had ordered its central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes rose on Friday as megacaps including Apple and Microsoft gained ahead of a fresh inflation reading next week that will provide further clues on the U.S. interest rate trajectory. O/R The S&P 500 and the Nasdaq have shed more than 1% this week on concerns the Federal Reserve could keep interest rates higher for longer following stronger-than-expected services activity data and a fall in weekly jobless claims.
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Shares of Apple AAPL.O rose 1.2% after a two-day selloff following news that Beijing had ordered its central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - Wall Street's main indexes rose on Friday as megacaps including Apple and Microsoft gained ahead of a fresh inflation reading next week that will provide further clues on the U.S. interest rate trajectory. New York Fed President John Williams kept his options open over future interest rate path while Dallas Fed President Lorie Logan said though it "could be appropriate" to skip a rate hike in the upcoming meeting, more policy tightening might be needed.
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13886.0
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2023-09-08 00:00:00 UTC
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Wall St Week Ahead-Investor hopes for US soft landing ride on inflation data
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-investor-hopes-for-us-soft-landing-ride-on-inflation-data
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nan
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nan
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By David Randall
NEW YORK, Sept 8 (Reuters) - U.S. stock investors are turning their focus to next week’s inflation data, which could determine the near-term path of an equity rally that has wobbled in recent weeks.
Signs the U.S. economy is on track for a so-called soft landing, where the Federal Reserve is able to bring down inflation without badly damaging growth, have helped power the S&P 500’s .SPX 16% year-to-date gain.
Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year.
Consumer price data next week may need to strike a similar balance, investors said. Too high a number could fan fears of the Fed leaving interest rates higher for longer or hiking them more in coming months. That would give investors less reason to hold onto stocks after a tech-led drop in which the S&P 500 lost about 5% from summer highs.
"This inflation demon is far from being destroyed," said Michael Purves, head of Tallbacken Capital Advisors, who expects signs of higher inflation will weigh on the multiples of megacap growth names that have powered the rally. "If we're hitting a structural shift with higher nominal GDP growth, that will come with some volatility and unintended consequences."
Investors trying to assess future Fed policy will watch other data in the coming week too, including a reading of the producer price index and retail sales.
The U.S. central bank is widely expected to hold benchmark rates steady at its Sept. 20 meeting. Markets are also pricing in a nearly 44% chance of a rate hike at the Fed’s Nov. meeting, up from 28% a month ago.
"If we get a high inflation print we will see those expectations pick right up" for September and November, said Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research.
OPTIMISTIC, BUT CAUTIOUS
Strategists and investors currently have largely held faith in the market despite stocks’ recent wobble. Some, though, are growing more cautious.
Reasons for optimism include the relative outperformance of the U.S. economy compared to Europe and China, and signs the so-called profit recession among S&P 500 companies may be over.
Still, worries over an economic slowdown in China and concerns that U.S. corporate margins will shrink have led some market participants to believe squeezing more gains out of stocks will grow more difficult.
The S&P 500 Information Technology sector lost more than 2% this week following news that Beijing had ordered central government employees to stop using iPhones for work. Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei.
"We think we are still in a bull market that will hit new highs before the end of the year, but it will be a choppy road," said Ed Clissold, Chief U.S. Strategist at Ned Davis Research.
The S&P 500 is down about 5% from its July highs, which has made stock valuations broadly more attractive given the low possibility of an imminent recession, said Jonathan Golub, senior equity strategist at Credit Suisse Securities.
Forward price to earnings multiples for 10 out of the 11 sector groups of the S&P 500 fell in August, he noted, though the P/E for the index as a whole remains near 20, compared with 17 at the end of 2022.
Still, much of the bull case for stocks hinges on softer inflation eventually pushing the Fed to lower interest rates.
"If we saw a further material rise in interest rates, the equity market would not take that well," said David Lefkowitz, head of U.S. equities at UBS Global Wealth Management.
(Reporting by David Randall; Editing by Ira Iosebashvili and David Gregorio)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. Signs the U.S. economy is on track for a so-called soft landing, where the Federal Reserve is able to bring down inflation without badly damaging growth, have helped power the S&P 500’s .SPX 16% year-to-date gain. "If we get a high inflation print we will see those expectations pick right up" for September and November, said Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research.
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Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year. Too high a number could fan fears of the Fed leaving interest rates higher for longer or hiking them more in coming months.
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Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. By David Randall NEW YORK, Sept 8 (Reuters) - U.S. stock investors are turning their focus to next week’s inflation data, which could determine the near-term path of an equity rally that has wobbled in recent weeks. Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year.
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Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. By David Randall NEW YORK, Sept 8 (Reuters) - U.S. stock investors are turning their focus to next week’s inflation data, which could determine the near-term path of an equity rally that has wobbled in recent weeks. Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year.
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13887.0
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2023-09-08 00:00:00 UTC
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Is iShares MSCI ACWI Low Carbon Target ETF (CRBN) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-msci-acwi-low-carbon-target-etf-crbn-a-strong-etf-right-now-9
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nan
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nan
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The iShares MSCI ACWI Low Carbon Target ETF (CRBN) was launched on 12/08/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $860.38 million, which makes it one of the larger ETFs in the World ETFs. This particular fund seeks to match the performance of the MSCI ACWI Low Carbon Target Index before fees and expenses.
The MSCI ACWI Low Carbon Target Index is designed to address two dimensions of carbon exposure ? carbon emissions and potential carbon emissions from fossil fuel reserves.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.20%.
CRBN's 12-month trailing dividend yield is 1.75%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
CRBN's top 10 holdings account for about 17.89% of its total assets under management.
Performance and Risk
The ETF has added about 13.30% and was up about 12.84% so far this year and in the past one year (as of 09/08/2023), respectively. CRBN has traded between $126.30 and $161.60 during this last 52-week period.
CRBN has a beta of 0.95 and standard deviation of 17.23% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 1201 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI ACWI Low Carbon Target ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $7.18 billion in assets, iShares ESG Aware MSCI USA ETF has $12.63 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index.
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Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares MSCI ACWI Low Carbon Target ETF (CRBN) was launched on 12/08/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the World ETFs category of the market.
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Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares MSCI ACWI Low Carbon Target ETF (CRBN) was launched on 12/08/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the World ETFs category of the market.
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13888.0
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2023-09-08 00:00:00 UTC
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US STOCKS-S&P, Nasdaq rise as megacaps gain ahead of key inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-rise-as-megacaps-gain-ahead-of-key-inflation-data
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 8 (Reuters) - The S&P 500 and Nasdaq rose on Friday as megacaps including Apple and Tesla gained ahead of a fresh inflation reading next week that will provide further clues on the U.S. interest rate trajectory.
U.S. Treasury yields edged lower on Friday, helping boost major growth stocks, with Tesla TSLA.O and Meta Platforms leading gains, up about 1.6% each.
Shares of Apple AAPL.O rose 1.3% after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces.
Wall Street analysts see a small hit to Apple's revenue this year from the curbs, with Morgan Stanley saying the worst case scenario was a 4% drop.
The S&P 500 information technology .SPLRCT sector rose 0.7%, with Adobe ADBE.O up 1.0% after Mizuho upgraded the software firm to "buy" from "neutral."
Energy .SPNY was the top gainer among major S&P 500 sectors, up 0.7%, boosted by 1.0% gains in ConocophillipsCOP.N after brokerage Erste Group raised the oil and gas producer's rating to "buy."
The S&P 500 and the Nasdaq have shed more than 1% this week as stronger-than-expected services activity data and a fall in weekly jobless claims fueled concerns the Federal Reserve could keep interest rates higher for longer.
"This month of September so far has taken the path of a negative outlook on rates, meaning that the Fed will probably continue to raise rates to combat the stubborn growth of the economy in the U.S.," said Peter Andersen, founder of Andersen Capital Management.
The Consumer Price Index reading for August is due on Sept. 13, while the Federal Reserve's policy decision is scheduled for Sept. 20.
Traders see a 93% chance of interest rates staying at current levels in September, while pricing in a near 57% chance for a pause in rate hikes in the November meeting, according to CME FedWatch Tool.
At 9:48 a.m. ET, the Dow Jones Industrial Average .DJI was down 5.74 points, or 0.02%, at 34,494.99, the S&P 500 .SPX was up 9.07 points, or 0.20%, at 4,460.21, and the Nasdaq Composite .IXIC was up 57.54 points, or 0.42%, at 13,806.37.
Investors also digested mixed commentary from several Fed speakers on Thursday.
New York Fed President John Williams kept his options open over future interest rate policy while Dallas Fed President Lorie Logan said though it "could be appropriate" to skip a rate hike in the upcoming meeting, more policy tightening might be needed.
San Francisco Fed President Mary Daly is due to speak later in the day.
Among other stocks, KrogerKR.N rose 1.9%, reversing premarket losses after the retailer beat estimates for quarterly adjusted profit.
GameStopGME.N fell 5.1% on a report that the U.S. Securities and Exchange Commission was investigating the videogame retailer's chairman, Ryan Cohen.
Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE and by a 1.23-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and 12 new lows, while the Nasdaq recorded 23 new highs and 89 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com; amruta.khandekar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O rose 1.3% after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - The S&P 500 and Nasdaq rose on Friday as megacaps including Apple and Tesla gained ahead of a fresh inflation reading next week that will provide further clues on the U.S. interest rate trajectory. Energy .SPNY was the top gainer among major S&P 500 sectors, up 0.7%, boosted by 1.0% gains in ConocophillipsCOP.N after brokerage Erste Group raised the oil and gas producer's rating to "buy."
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Shares of Apple AAPL.O rose 1.3% after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. U.S. Treasury yields edged lower on Friday, helping boost major growth stocks, with Tesla TSLA.O and Meta Platforms leading gains, up about 1.6% each. The Consumer Price Index reading for August is due on Sept. 13, while the Federal Reserve's policy decision is scheduled for Sept. 20.
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Shares of Apple AAPL.O rose 1.3% after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - The S&P 500 and Nasdaq rose on Friday as megacaps including Apple and Tesla gained ahead of a fresh inflation reading next week that will provide further clues on the U.S. interest rate trajectory. The S&P 500 and the Nasdaq have shed more than 1% this week as stronger-than-expected services activity data and a fall in weekly jobless claims fueled concerns the Federal Reserve could keep interest rates higher for longer.
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Shares of Apple AAPL.O rose 1.3% after a two-day selloff following news that Beijing had ordered central government employees in recent weeks to stop using iPhones at workplaces. By Shristi Achar A and Amruta Khandekar Sept 8 (Reuters) - The S&P 500 and Nasdaq rose on Friday as megacaps including Apple and Tesla gained ahead of a fresh inflation reading next week that will provide further clues on the U.S. interest rate trajectory. Energy .SPNY was the top gainer among major S&P 500 sectors, up 0.7%, boosted by 1.0% gains in ConocophillipsCOP.N after brokerage Erste Group raised the oil and gas producer's rating to "buy."
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13889.0
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2023-09-08 00:00:00 UTC
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Is WisdomTree U.S. LargeCap ETF (EPS) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-largecap-etf-eps-a-strong-etf-right-now-7
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nan
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Launched on 02/23/2007, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Wisdomtree. It has amassed assets over $691.70 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. EPS seeks to match the performance of the WisdomTree U.S. Earnings 500 Index before fees and expenses.
The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for EPS are 0.08%, which makes it one of the least expensive products in the space.
EPS's 12-month trailing dividend yield is 1.80%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For EPS, it has heaviest allocation in the Information Technology sector --about 23.80% of the portfolio --while Financials and Healthcare round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 29.24% of total assets under management.
Performance and Risk
The ETF has added roughly 14.55% and it's up approximately 12.67% so far this year and in the past one year (as of 09/08/2023), respectively. EPS has traded between $38.39 and $48.62 during this last 52-week period.
The fund has a beta of 1 and standard deviation of 17.24% for the trailing three-year period, which makes EPS a medium risk choice in this particular space. With about 501 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $50.21 billion in assets, Vanguard Value ETF has $100.71 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 02/23/2007, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Launched on 02/23/2007, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 5.50% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Launched on 02/23/2007, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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13890.0
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2023-09-08 00:00:00 UTC
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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-outpaces-stock-market-gains%3A-what-you-should-know-18
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Apple (AAPL) closed the most recent trading day at $178.18, moving +0.35% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 0.23% over the past month, lagging the Computer and Technology sector's gain of 0.07% and outpacing the S&P 500's loss of 1.27% in that time.
Apple will be looking to display strength as it nears its next earnings release. In that report, analysts expect Apple to post earnings of $1.39 per share. This would mark year-over-year growth of 7.75%. Meanwhile, our latest consensus estimate is calling for revenue of $88.99 billion, down 1.28% from the prior-year quarter.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.78 billion. These results would represent year-over-year changes of -0.98% and -2.93%, respectively.
Any recent changes to analyst estimates for Apple should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Apple is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Apple currently has a Forward P/E ratio of 29.37. This valuation marks a premium compared to its industry's average Forward P/E of 11.86.
Meanwhile, AAPL's PEG ratio is currently 2.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Mini computers was holding an average PEG ratio of 2.59 at yesterday's closing price.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) closed the most recent trading day at $178.18, moving +0.35% from the previous trading session. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.78 billion. Meanwhile, AAPL's PEG ratio is currently 2.59.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) closed the most recent trading day at $178.18, moving +0.35% from the previous trading session. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.78 billion.
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AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.78 billion. Apple (AAPL) closed the most recent trading day at $178.18, moving +0.35% from the previous trading session. Meanwhile, AAPL's PEG ratio is currently 2.59.
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Apple (AAPL) closed the most recent trading day at $178.18, moving +0.35% from the previous trading session. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.78 billion. Meanwhile, AAPL's PEG ratio is currently 2.59.
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13891.0
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2023-09-08 00:00:00 UTC
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The 7 Best Dow Stocks to Buy Now: September 2023
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AAPL
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https://www.nasdaq.com/articles/the-7-best-dow-stocks-to-buy-now%3A-september-2023
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Finding the best Dow stocks to buy can be complex.
The companies listed in the Dow Jones Industrial Average tend to be blue-chip stocks that have large market capitalizations and are dominant in their sectors of the economy.
For this reason, investors often see the Dow as bellwether for the health of the U.S. economy, making the best Dow stocks to buy worth seeking out. This year, the Dow has trailed the other main U.S. stock indexes in terms of performance.
While the tech-laden Nasdaq index has gained 33% year to date and the benchmark S&P 500 has risen 17%, the Dow Jones Industrial Average has only increased 4% since the first trading day in January.
This means that bargains can still be found among Dow stocks. While the sprint in technology stocks has left many names red faced and gasping for air, there remain many great stocks listed on the Dow that are undervalued at current levels.
Here are the seven best Dow stocks to buy now: September 2023.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Consumer electronics giant Apple (NASDAQ:AAPL) is getting dragged into global politics. News reports claim that China has ordered officials at all government agencies to stop using Apple iPhones for work.
The ban on iPhones among government workers comes as political tensions escalate between the U.S. and China. The U.S. government earlier this year banned federal government workers from using Chinese smartphone maker Huawei Technologies products, as well as the short form video app TikTok that is owned by China’s ByteDance.
While China’s ban on iPhones may seem like political posturing, it is likely to have some impact on Apple.
China has nearly 40 million government workers and is one of the company’s biggest markets, generating nearly one-fifth (20%) of its annual revenue.
News of the China ban sent AAPL stock down more than 3%. Investors should see this as a buying opportunity, especially ahead of the upcoming launch of the new iPhone 15 and other devices from Apple. Year to date, AAPL stock is up 46% and is perennially one of the best Dow stocks to buy.
Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
Shares of Coca-Cola (NYSE:KO) have also dipped lately, falling below the key threshold of $60 a share and bringing the beverage giant’s decline on the year to 7%.
This too is a buy-the-dip opportunity, especially given Coca-Cola’s long-term track record of returns to shareholders and a strong dividend that offers a yield of 3.13%.
What makes it among the best Dow stocks to buy is that the company continues to boost its dividend payment by about 5.5% each year. The median price target on KO stock among 20 analysts who cover the company is 20% higher than current levels.
Trading at 24 times forward earnings is also reasonable for Coca-Cola’s shares. Especially considering that the company continues to issue strong financial results, is raising prices, and is seeing demand hold-up despite the broader economy starting to slow.
Coca-Cola’s Q2 results were impressive, with the company beating analysts’ forecasts on both the top and bottom lines and raising its guidance for the rest of this year. KO stock remains a reliable blue-chip name for investors to buy on the downswing.
Johnson & Johnson (JNJ)
Source: Alexander Tolstykh / Shutterstock.com
Interesting things are happening at Johnson & Johnson (NYSE:JNJ).
The healthcare company reported better-than-expected Q2 earnings and raised its full-year guidance. Sales in its MedTech business unit surged in the April through June period.
The company said it is also seeing a rebound in non-urgent surgeries among older adults who had deferred procedures during the pandemic.
Johnson & Johnson is now forecasting full-year revenue of $98.8 billion to $99.8 billion, which is about $1 billion higher than its previous outlook, making it one of the best Dow stocks to buy for the long term.
Johnson & Johnson has spun-off its consumer health business into a separate publicly traded company called Kenvue (NYSE:KVUE). The spin-off was a success and led Johnson & Johnson to further revise up its earnings guidance for the remainder of this year.
Separating the consumer health unit that includes products such as Visine eye drops and Tylenol pain medicine has been praised by analysts who see it as giving Johnson & Johnson the opportunity to focus on its pharmaceutical products.
JNJ stock has is down 11% on the year.
McDonald’s (MCD)
Source: 8th.creator / Shutterstock.com
No matter what happens with interest rates and the economy in coming months, it’s a safe bet that we’ll all still be eating at McDonald’s (NYSE:MCD).
A best-in-class blue-chip name, McDonald’s is the type of set it and forget it stock that can help investors sleep soundly at night. That’s because McDonald’s burgers, fries and drinks sell well in any environment.
Even during the pandemic, the Golden Arches didn’t miss a beat as they switched all their orders to the drive-thru counter.
MCD stock is only up 4% this year and looks like a great opportunity for long-term investors. The current price-earnings ratio of 25 is low by historic standards and the quarterly dividend payment of $1.52 a share, for a yield of 2.21%, is strong.
Despite the tepid share price gains this year, MCD stock is still up 70% over five years and proven long-term winner. The company’s most recent earnings print was typically great, with McDonald’s reporting global same-store sales growth of 11.7%.
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
Investors on the hunt for an artificial intelligence stock that hasn’t already tripled this year should consider Microsoft (NASDAQ:MSFT).
Shares of the leading technology company are up 38% this year, trailing most other big cap tech stocks and well behind the 230% gain in the stock of AI microchip leader Nvidia (NASDAQ:NVDA).
Yet Microsoft is more exposed to AI than most companies with its $10 billion investment in privately held OpenAI, the company behind ChatGPT.
In fact, Microsoft has already integrated ChatGPT and its successor, GPT-4, into its Bing search engine, giving it a leg up on its competitors. MSFT stock has been trading sideways since the company issued mixed Q2 results that left investors feeling deflated.
The pending regulatory approval of the company’s $68 billion acquisition of leading video game maker Activision Blizzard (NASDAQ:ATVI) is also weighing on the share price. But long-term, Microsoft has many things working in its favor.
Eventually, markets will catch-up, but right now MSFT is one of the best Dow stocks to buy on the dip.
Nike (NKE)
Source: pixfly / Shutterstock.com
Shares of Nike (NYSE:NKE) have to turnaround at some point, right? There is a clear buying opportunity here with NKE stock down 15% on the year and currently trading at $100 a share.
The sneaker and apparel maker’s stock has been sliding lower due to a combination of problems that have included soft sales in China, production problems elsewhere in Asia, and excess inventories, all of which have led to poor financial results that have left Wall Street unimpressed.
NKE stock really hit the skids after the company reported earnings that included its first profit miss in three years. The company also announced lower profit margins and stagnant inventories.
Forward guidance too underwhelmed, with Nike saying it now expects revenue to grow by mid-single digits for this fiscal year. Analysts had expected year-over-year revenue growth of 6.3%.
Perhaps most importantly, Nike said that its inventory value came in at $8.5 billion at the end of its latest quarter, which was flat compared with the previous year.
While things have been bad with Nike, there is hope that the share price has now bottomed and will rise as the company gets its mojo back in the coming quarters.
Visa (V)
Source: Kikinunchi / Shutterstock.com
It’s been tough sledding for credit card companies coming out of the pandemic. But there’s hope that a turnaround might be underway at the major issuers, including Visa (NYSE:V).
Visa says that it is seeing consumer spending hold up this year. In its most recent print, Visa reported earnings of $4.2 billion on $8.1 billion of revenue, giving the company an impressive profit margin of 52%.
As we move to a cashless society, credit card use is on the rise in the U.S. and elsewhere in the world.
Visa and other credit card companies are also seeing spending increase on travel and dining out in the pandemic’s wake. Visa has posted double-digit year-over-year revenue growth for nearly 15 consecutive years.
The only year that the company posted a sales decline was in 2020 when Covid-19 struck. Visa is also increasing the amount of money it makes from value-added services such as fraud prevention and data analytics, and is even pushing into cryptocurrencies. V stock is up nearly 20% this year and has increased 72% over five years.
On the date of publication, Joel Baglole held long positions in AAPL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post The 7 Best Dow Stocks to Buy Now: September 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) is getting dragged into global politics. News of the China ban sent AAPL stock down more than 3%. Year to date, AAPL stock is up 46% and is perennially one of the best Dow stocks to buy.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) is getting dragged into global politics. News of the China ban sent AAPL stock down more than 3%. Year to date, AAPL stock is up 46% and is perennially one of the best Dow stocks to buy.
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Year to date, AAPL stock is up 46% and is perennially one of the best Dow stocks to buy. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) is getting dragged into global politics. News of the China ban sent AAPL stock down more than 3%.
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Year to date, AAPL stock is up 46% and is perennially one of the best Dow stocks to buy. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) is getting dragged into global politics. News of the China ban sent AAPL stock down more than 3%.
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2023-09-08 00:00:00 UTC
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Should iShares Russell Top 200 ETF (IWL) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-top-200-etf-iwl-be-on-your-investing-radar-7
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nan
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the iShares Russell Top 200 ETF (IWL), a passively managed exchange traded fund launched on 09/22/2009.
The fund is sponsored by Blackrock. It has amassed assets over $920.24 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.36%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 31.50% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.52% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 36.24% of total assets under management.
Performance and Risk
IWL seeks to match the performance of the Russell Top 200 Index before fees and expenses. The Russell Top 200 Index is a float-adjusted, capitalization-weighted index that measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has gained about 20.36% so far this year and is up roughly 15.62% in the last one year (as of 09/08/2023). In the past 52-week period, it has traded between $84.55 and $110.14.
The ETF has a beta of 0.99 and standard deviation of 18.28% for the trailing three-year period, making it a medium risk choice in the space. With about 200 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWL is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $348.62 billion in assets, SPDR S&P 500 ETF has $409.08 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Russell Top 200 ETF (IWL): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.52% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $920.24 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.52% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). You should consider the iShares Russell Top 200 ETF (IWL), a passively managed exchange traded fund launched on 09/22/2009.
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Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.52% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell Top 200 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.52% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. You should consider the iShares Russell Top 200 ETF (IWL), a passively managed exchange traded fund launched on 09/22/2009.
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13893.0
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2023-09-08 00:00:00 UTC
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European stocks stabilise after seven-day selloff
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AAPL
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https://www.nasdaq.com/articles/european-stocks-stabilise-after-seven-day-selloff
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Sept 8 (Reuters) - European stocks edged higher on Friday, as investors snapped up battered luxury and technology shares after a plethora of concerns including the prospect of elevated U.S. interest rates and slowing European economy roiled sentiment this week.
The pan-European STOXX 600 index .STOXX rose 0.3% after marking a seven-day losing run on Thursday, its longest such streak since February 2018.
French luxury giant LVMH LVMH.PA added 0.7% after slumping earlier this week on concerns about sputtering economic growth in China.
STMicroelectronics STM.MI inched up 0.3% after getting swept up in a chip selloff on worries about China imposing curbs on Apple's AAPL.O iPhones.
While the mood marginally stabilised on Friday, the STOXX 600 was still set for a weekly loss of about 0.7% as investors were concerned about the prospect of a European recession and U.S. rates staying elevated.
Saipem SPMI.MI rose 1.9% after the Italian energy services group won new offshore contracts worth 850 million euros ($910.18 million).
($1 = 0.9339 euros)
(Reporting by Sruthi Shankar in Bengaluru; Editing by Rashmi Aich)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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STMicroelectronics STM.MI inched up 0.3% after getting swept up in a chip selloff on worries about China imposing curbs on Apple's AAPL.O iPhones. The pan-European STOXX 600 index .STOXX rose 0.3% after marking a seven-day losing run on Thursday, its longest such streak since February 2018. French luxury giant LVMH LVMH.PA added 0.7% after slumping earlier this week on concerns about sputtering economic growth in China.
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STMicroelectronics STM.MI inched up 0.3% after getting swept up in a chip selloff on worries about China imposing curbs on Apple's AAPL.O iPhones. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Sept 8 (Reuters) - European stocks edged higher on Friday, as investors snapped up battered luxury and technology shares after a plethora of concerns including the prospect of elevated U.S. interest rates and slowing European economy roiled sentiment this week. While the mood marginally stabilised on Friday, the STOXX 600 was still set for a weekly loss of about 0.7% as investors were concerned about the prospect of a European recession and U.S. rates staying elevated.
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STMicroelectronics STM.MI inched up 0.3% after getting swept up in a chip selloff on worries about China imposing curbs on Apple's AAPL.O iPhones. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Sept 8 (Reuters) - European stocks edged higher on Friday, as investors snapped up battered luxury and technology shares after a plethora of concerns including the prospect of elevated U.S. interest rates and slowing European economy roiled sentiment this week. Saipem SPMI.MI rose 1.9% after the Italian energy services group won new offshore contracts worth 850 million euros ($910.18 million).
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STMicroelectronics STM.MI inched up 0.3% after getting swept up in a chip selloff on worries about China imposing curbs on Apple's AAPL.O iPhones. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Sept 8 (Reuters) - European stocks edged higher on Friday, as investors snapped up battered luxury and technology shares after a plethora of concerns including the prospect of elevated U.S. interest rates and slowing European economy roiled sentiment this week. The pan-European STOXX 600 index .STOXX rose 0.3% after marking a seven-day losing run on Thursday, its longest such streak since February 2018.
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13894.0
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2023-09-07 00:00:00 UTC
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Stock Market News for Sep 7, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-sep-7-2023
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U.S. stock markets closed lower on Wednesday as market participants remain highly concerned regarding the Fed’s next move with respect to interest rate. A resilient U.S. economy and an elevated inflation rate may compel the central bank to pursue high interest rate regime. Higher yield on U.S. sovereign bonds higher U.S. dollar index also dented investors’ confidence on risky assets. like equities. All the three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.6% or 198.78 points to close at 34,443.19 after a choppy session. Notably, 22 components of the 30-stock index ended in negative territory, while 8 in green. The tech-heavy Nasdaq Composite finished at 13,872.47, sliding 1.1% due to weak performance of large-cap technology stocks.
The S&P 500 dropped 0.7% to end at 4,465.48. Nine out of 11 broad sectors of the benchmark ended in negative territory, while two finished in green. The Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY), the Industrials Select Sector SPDR (XLF), the Health Care Select Sector SPDR (XLV) and the Materials Select Sector SPDR (XLB) fell 1.1%, 0.9%, 0.4%, 0.5% and 0.2%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 3.1% to 14.45. A total of 9.39 billion shares were traded on Wednesday, lower than the last 20-session average of 10.17 billion. Decliners outnumbered decliners on the NYSE by a 2.05-to-1 ratio. On Nasdaq, a 1.97-to-1 ratio favored declining issues.
Near-Term Concerns
Crude oil prices spiked on Sep 5, following the decision of Saudi Arabia to extend its daily production cut decision until the end of 2023. Investors are concerned that higher crude oil prices will result in higher inflation. Higher oil prices will directly affect transportation sector, which in turn will raise the general price level. This will make the task of the Fed more difficult for a soft landing of the U.S. economy.
Moreover, the yield on the benchmark 10-Year U.S. Treasury Note rose 2 basis points to 4.292%. The yield on the short-term 2-Year U.S. Treasury Note jumped 10 basis points to 5.02%. This yield is loosely linked to interest rate movement. The yield on the long-term 30-Year U.S. Treasury Note climbed 14 basis points to 4.373%. The ICE U.S. dollar Index rose to a six-month high at 104.90.
Higher risk-free market interest rate is detrimental to growth stocks like technology. These companies depend on easy access to cheap credits. Consequently, shares of tech behemoths like NVIDIA Cor. NVDA, Apple Inc. AAPL and Alphabet Inc. GOOGL declined 3.1%, 3.6% and 1%, respectively. NVIDIA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Strong Economic Data
The Institute of Supply Management reported that services purchasing managers’ index (PMI) for August came in at 54.5%, beating the consensus estimate of 52.7%. The reading for July was 52.7%. Notably, any reading above 50% indicates expansion of services activities. August marked the eighth consecutive months of expansion.
The prices index for the services PMI was up 2.1% to 58.9%. Notably, the prices index for the manufacturing PMI for August was also up 5.8% to 48.4%. This indicates inflation rate to be elevated while consumer demand remains strong.
The U.S. trade deficit for July came in at $65 billion, lower than the consensus estimates of $68.3 billion. The data for June was revised downward to a deficit of $63.7 billion form a deficit of $65.5 billion reported earlier. July exports were $251.7 billion, $3.9 billion more than June exports. July imports were $316.7 billion, $5.2 billion more than June imports.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NVDA, Apple Inc. AAPL and Alphabet Inc. GOOGL declined 3.1%, 3.6% and 1%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. The Dow Jones Industrial Average (DJI) fell 0.6% or 198.78 points to close at 34,443.19 after a choppy session.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. NVDA, Apple Inc. AAPL and Alphabet Inc. GOOGL declined 3.1%, 3.6% and 1%, respectively. U.S. stock markets closed lower on Wednesday as market participants remain highly concerned regarding the Fed’s next move with respect to interest rate.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. NVDA, Apple Inc. AAPL and Alphabet Inc. GOOGL declined 3.1%, 3.6% and 1%, respectively. U.S. stock markets closed lower on Wednesday as market participants remain highly concerned regarding the Fed’s next move with respect to interest rate.
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NVDA, Apple Inc. AAPL and Alphabet Inc. GOOGL declined 3.1%, 3.6% and 1%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Nine out of 11 broad sectors of the benchmark ended in negative territory, while two finished in green.
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13895.0
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2023-09-07 00:00:00 UTC
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TSMC shares fall after reports of China iPhone curbs
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AAPL
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https://www.nasdaq.com/articles/tsmc-shares-fall-after-reports-of-china-iphone-curbs
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nan
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TAIPEI, Sept 8 (Reuters) - Shares in Taiwan's TSMC 2330.TW, a major Apple AAPL.O supplier, dropped around 1% on opening on Friday after reports that China has widened curbs on iPhone use by state employees.
The broader index .TWII was down around 0.4%.
(Reporting by Ben Blanchard; Editing by Edmund Klamann)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, Sept 8 (Reuters) - Shares in Taiwan's TSMC 2330.TW, a major Apple AAPL.O supplier, dropped around 1% on opening on Friday after reports that China has widened curbs on iPhone use by state employees. The broader index .TWII was down around 0.4%. (Reporting by Ben Blanchard; Editing by Edmund Klamann) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, Sept 8 (Reuters) - Shares in Taiwan's TSMC 2330.TW, a major Apple AAPL.O supplier, dropped around 1% on opening on Friday after reports that China has widened curbs on iPhone use by state employees. The broader index .TWII was down around 0.4%. (Reporting by Ben Blanchard; Editing by Edmund Klamann) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, Sept 8 (Reuters) - Shares in Taiwan's TSMC 2330.TW, a major Apple AAPL.O supplier, dropped around 1% on opening on Friday after reports that China has widened curbs on iPhone use by state employees. The broader index .TWII was down around 0.4%. (Reporting by Ben Blanchard; Editing by Edmund Klamann) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, Sept 8 (Reuters) - Shares in Taiwan's TSMC 2330.TW, a major Apple AAPL.O supplier, dropped around 1% on opening on Friday after reports that China has widened curbs on iPhone use by state employees. The broader index .TWII was down around 0.4%. (Reporting by Ben Blanchard; Editing by Edmund Klamann) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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13896.0
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2023-09-07 00:00:00 UTC
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Stocks Slump Before the Open as Inflation and Interest Rate Worries Return
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AAPL
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https://www.nasdaq.com/articles/stocks-slump-before-the-open-as-inflation-and-interest-rate-worries-return
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nan
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September S&P 500 futures (ESU23) are down -0.58%, and September Nasdaq 100 E-Mini futures (NQU23) are down -0.88% this morning after three major U.S. benchmark indices ended the regular session lower as an unexpected rise in a key U.S. services activity gauge bolstered speculation that the Federal Reserve would have to keep interest rates higher for longer.
In Wednesday’s trading session, the benchmark S&P 500 and tech-heavy Nasdaq 100 notched 1-week lows, and the blue-chip Dow posted a 1-1/2 week low. Apple Inc (AAPL) plunged over -3% and was among the top percentage losers on the Nasdaq 100 following a Wall Street Journal report stating that China had instructed government agencies to cease using the tech giant’s iPhone and other foreign electronic devices at work. Also, Lockheed Martin Corporation (LMT) slid more than -4% after the company cut the delivery outlook for its F-35 jets and delayed deliveries of its updated Technology Refresh 3 jets. In addition, Johnson & Johnson (JNJ) fell over -1% after HSBC initiated coverage of the stock with a Hold rating. On the bullish side, AeroVironment Inc (AVAV) surged more than +20% after the maker of combat drones and other unmanned systems reported upbeat Q1 results and raised its FY24 revenue guidance.
Economic data on Wednesday showed that the U.S. ISM services index unexpectedly rose to a 6-month high of 54.5 in August, stronger than expectations of 52.5. Also, the U.S. Trade Balance stood at -$65.00B in July, stronger than expectations of -$68.00B. At the same time, the U.S. August S&P Global composite PMI came in at 50.2, weaker than expectations of 50.4.
“The ISM Services Sector report underscores the resilience of the largest portion of the economy. Unfortunately, the prices-paid component moved in the wrong direction — similar to the higher prices paid in the manufacturing report — edging markedly higher. This is certainly not good news for a data-dependent Fed,” said Quincy Krosby, chief global strategist at LPL Financial.
Boston Fed President Susan Collins said Wednesday that policymakers will need to exercise patience as they assess economic data to determine their next course of action. “This phase of our policy cycle requires patience and holistic data assessment while we stay the course,” she said. However, she pointed out that if the improvement in inflation data is fleeting, “further tightening could be warranted.”
Meanwhile, U.S. rate futures have priced in a 7.0% probability of a 25 basis point rate increase at September’s monetary policy meeting and a 43.4% chance of a 25 basis point rate hike at November’s monetary policy meeting.
In other news, the Federal Reserve’s Beige Book report, released on Wednesday, indicated that economic activity was modest in July and August, with subdued job growth across the United States and a slowdown in price growth in most districts.
Today, all eyes are focused on U.S. Initial Jobless Claims data in a couple of hours. Economists, on average, forecast that Initial Jobless Claims will come in at 234K, compared to last week’s value of 228K.
Also, investors are likely to focus on U.S. Unit Labor Costs data, which came in at +3.3% q/q in the first quarter. Economists foresee the second-quarter figure to be +1.6% q/q.
U.S. Nonfarm Productivity data will come in today. Economists foresee this figure to stand at +3.7% q/q in the second quarter, compared to the first-quarter number of -1.2% q/q.
U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be -2.064M, compared to last week’s value of -10.584M.
In addition, market participants will be looking toward speeches from New York Fed President John Williams and Atlanta Fed President Raphael Bostic.
In the bond markets, United States 10-year rates are at 4.281%, down -0.28%.
The Euro Stoxx 50 futures are up +0.09% this morning, clawing back early losses from weak German data. Gains in utility and construction stocks are leading the overall market higher. Eurostat’s final data showed Thursday that the Eurozone economy experienced meager growth in the second quarter, falling short of earlier projections due to stagnant domestic consumption and weakened exports. Separately, German industrial production fell again in July, offering fresh evidence of a slowdown in Europe’s largest economy. In corporate news, Direct Line Insurance Group Plc (DLG.LN) climbed over +17% after the British motor and home insurer projected better operating profit in 2024.
U.K.’s Halifax House Price Index, Germany’s Industrial Production, Eurozone’s GDP, and Eurozone’s Employment Change data were released today.
U.K. August Halifax House Price Index stood at -1.9% m/m and -4.6% y/y, weaker than expectations of -0.3% m/m and -3.5% y/y.
The German July Industrial Production came in at -0.8% m/m, weaker than expectations of -0.5% m/m.
Eurozone Employment Change arrived at +0.2% q/q and +1.3% y/y in the second quarter, compared to expectations of +0.2% q/q and +1.5% y/y.
Eurozone GDP has been reported at +0.1% q/q and +0.5% y/y in the second quarter, weaker than expectations of +0.3% q/q and +0.6% y/y.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -1.13%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.75%.
China’s Shanghai Composite today closed lower after trade data indicated continued economic weakness in the country, while the prospect of renewed Sino-U.S. tensions also weighed on sentiment. Customs data showed on Thursday that China’s imports and exports contracted at a rate slower than anticipated in August, but they remained near historic lows due to sluggish demand both domestically and abroad. Meanwhile, the chair of the House of Representatives committee on China stated on Wednesday that the U.S. Commerce Department should end all technology exports to Huawei and SMIC in light of the discovery of new chips in Huawei phones that could violate trade restrictions. On the ground of this, semiconductor stocks retreated on Thursday, with China’s top chipmaker Semiconductor Manufacturing International Corp slumping over -7%. Mainland property developers traded in Hong Kong also lost ground. In other news, four major state banks in China said Thursday they would start to lower interest rates on existing mortgages for first-home loans, bringing them down to the levels applicable at the time of home purchase.
“While the better-than-expected data came as a relief, more stimulus measures are needed to drive economic growth and lift market confidence,” UBS analysts wrote in a note.
The Chinese August Trade Balance has been reported at $68.36B, weaker than expectations of $73.90B.
The Chinese August Exports stood at -8.8% y/y, stronger than expectations of -9.2% y/y.
The Chinese August Imports came in at -7.3% y/y, stronger than expectations of -9.0% y/y.
Japan’s Nikkei 225 Stock Index closed lower today, snapping an eight-day winning streak as rising U.S. yields and concerns over a decelerating Chinese economy weighed on investor sentiment. Meanwhile, Bank of Japan Board Member Junko Nakagawa said that maintaining monetary easing is appropriate for the time being, especially given that the inflation target has not yet been met. In corporate news, computer-chip testing equipment maker Advantest plunged over -6% on Thursday, tracking an overnight drop in customer Nvidia. Also, NTN Corp dropped more than -5% after the ball-bearings manufacturer issued a zero-coupon convertible bond. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +4.38% to 17.89.
Pre-Market U.S. Stock Movers
Apple Inc (AAPL) fell over -2% in pre-market trading following reports that China aimed to extend the prohibition of Apple’s iPhones in sensitive government departments to government-backed agencies and state-owned enterprises.
WestRock Co (WRK) climbed more than +8% in pre-market trading following a report by the Wall Street Journal indicating that the company is engaged in talks regarding a potential merger with Europe’s Smurfit Kappa.
GameStop Corp (GME) soared over +6% in pre-market trading after the company reported better-than-expected Q2 results.
UiPath Inc (PATH) gained over +4% in pre-market trading after the company posted upbeat Q2 results and provided solid FY24 revenue guidance.
C3.ai Inc (AI) plunged over -9% in pre-market trading after the enterprise software company said it would not be profitable by the end of fiscal year 2024.
Sportsmans (SPWH) tumbled more than -14% in pre-market trading after reporting downbeat Q2 results.
Dell Technologies Inc (DELL) fell about -3% in pre-market trading after Barclays downgraded the stock to Underweight from Equal Weight.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - September 7th
DocuSign (DOCU), Toro (TTC), Guidewire (GWRE), Science Applications (SAIC), BRP Inc (DOOO), Smartsheet (SMAR), Braze (BRZE), ABM Industries (ABM), Korn Ferry (KFY), John Wiley&Sons (WLY), Semtech (SMTC), Methode Electronics (MEI), Planet Labs PBC (PL), G-III Apparel (GIII), Avid Bioservices (CDMO), Tsakos Energy (TNP), Secureworks (SCWX), Smith & Wesson (SWBI), Concrete Pumping A (BBCP), Zumiez (ZUMZ), Limoneira (LMNR).
More Stock Market News from Barchart
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Unusual Options Activity in Johnson & Johnson Post Its Kenvue Spinoff Highlights Its Value
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc (AAPL) plunged over -3% and was among the top percentage losers on the Nasdaq 100 following a Wall Street Journal report stating that China had instructed government agencies to cease using the tech giant’s iPhone and other foreign electronic devices at work. Pre-Market U.S. Stock Movers Apple Inc (AAPL) fell over -2% in pre-market trading following reports that China aimed to extend the prohibition of Apple’s iPhones in sensitive government departments to government-backed agencies and state-owned enterprises. Eurostat’s final data showed Thursday that the Eurozone economy experienced meager growth in the second quarter, falling short of earlier projections due to stagnant domestic consumption and weakened exports.
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Apple Inc (AAPL) plunged over -3% and was among the top percentage losers on the Nasdaq 100 following a Wall Street Journal report stating that China had instructed government agencies to cease using the tech giant’s iPhone and other foreign electronic devices at work. Pre-Market U.S. Stock Movers Apple Inc (AAPL) fell over -2% in pre-market trading following reports that China aimed to extend the prohibition of Apple’s iPhones in sensitive government departments to government-backed agencies and state-owned enterprises. In other news, the Federal Reserve’s Beige Book report, released on Wednesday, indicated that economic activity was modest in July and August, with subdued job growth across the United States and a slowdown in price growth in most districts.
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Pre-Market U.S. Stock Movers Apple Inc (AAPL) fell over -2% in pre-market trading following reports that China aimed to extend the prohibition of Apple’s iPhones in sensitive government departments to government-backed agencies and state-owned enterprises. Apple Inc (AAPL) plunged over -3% and was among the top percentage losers on the Nasdaq 100 following a Wall Street Journal report stating that China had instructed government agencies to cease using the tech giant’s iPhone and other foreign electronic devices at work. However, she pointed out that if the improvement in inflation data is fleeting, “further tightening could be warranted.” Meanwhile, U.S. rate futures have priced in a 7.0% probability of a 25 basis point rate increase at September’s monetary policy meeting and a 43.4% chance of a 25 basis point rate hike at November’s monetary policy meeting.
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Apple Inc (AAPL) plunged over -3% and was among the top percentage losers on the Nasdaq 100 following a Wall Street Journal report stating that China had instructed government agencies to cease using the tech giant’s iPhone and other foreign electronic devices at work. Pre-Market U.S. Stock Movers Apple Inc (AAPL) fell over -2% in pre-market trading following reports that China aimed to extend the prohibition of Apple’s iPhones in sensitive government departments to government-backed agencies and state-owned enterprises. Economic data on Wednesday showed that the U.S. ISM services index unexpectedly rose to a 6-month high of 54.5 in August, stronger than expectations of 52.5.
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13897.0
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2023-09-07 00:00:00 UTC
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Pre-Market Most Active for Sep 7, 2023 : SQQQ, TQQQ, AAPL, CBAY, AMC, TSLA, NVDA, AI, NIO, PLTR, CHPT, LYG
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-sep-7-2023-%3A-sqqq-tqqq-aapl-cbay-amc-tsla-nvda-ai-nio-pltr-chpt
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The NASDAQ 100 Pre-Market Indicator is down -185.06 to 15,186.38. The total Pre-Market volume is currently 30,767,876 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is +0.47 at $18.65, with 3,793,473 shares traded. This represents a 13.86% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is -1.03 at $40.25, with 2,868,115 shares traded. This represents a 150% increase from its 52 Week Low.
Apple Inc. (AAPL) is -5.3611 at $177.55, with 2,412,495 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
CymaBay Therapeutics Inc. (CBAY) is +2.49 at $16.32, with 2,220,504 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $-0.3. As reported in the last short interest update the days to cover for CBAY is 8.270833; this calculation is based on the average trading volume of the stock.
AMC Entertainment Holdings, Inc. (AMC) is -0.27 at $8.35, with 2,202,654 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $-0.48. , following a 52-week high recorded in prior regular session.
Tesla, Inc. (TSLA) is -5.79 at $246.13, with 1,462,072 shares traded. TSLA's current last sale is 93.76% of the target price of $262.5.
NVIDIA Corporation (NVDA) is -10.0098 at $460.60, with 871,330 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023. The consensus EPS forecast is $2.9. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
C3.ai, Inc. (AI) is -3.86 at $27.60, with 822,034 shares traded. AI's current last sale is 102.22% of the target price of $27.
NIO Inc. (NIO) is -0.25 at $10.33, with 696,323 shares traded. NIO's current last sale is 81.02% of the target price of $12.75.
Palantir Technologies Inc. (PLTR) is -0.29 at $15.01, with 520,122 shares traded. PLTR's current last sale is 120.08% of the target price of $12.5.
ChargePoint Holdings, Inc. (CHPT) is -0.89 at $6.17, with 478,795 shares traded. As reported by Zacks, the current mean recommendation for CHPT is in the "buy range".
Lloyds Banking Group Plc (LYG) is -0.01 at $2.02, with 467,488 shares traded. LYG's current last sale is 69.66% of the target price of $2.9.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -5.3611 at $177.55, with 2,412,495 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -5.3611 at $177.55, with 2,412,495 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 30,767,876 shares traded.
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Apple Inc. (AAPL) is -5.3611 at $177.55, with 2,412,495 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 30,767,876 shares traded.
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Apple Inc. (AAPL) is -5.3611 at $177.55, with 2,412,495 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the pre-market session:
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13898.0
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2023-09-07 00:00:00 UTC
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China moves to widen state employee iPhone curbs - sources
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AAPL
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https://www.nasdaq.com/articles/china-moves-to-widen-state-employee-iphone-curbs-sources-0
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nan
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nan
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By Julie Zhu and Kevin Yao
HONG KONG/BEIJING, Sept 7 (Reuters) - China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work, two sources familiar with the matter said.
Against a backdrop of tensions between Beijing and Washington, the extension of a ban imposed more than two years ago signals growing challenges for the U.S. company, which relies heavily on China for revenue growth and manufacturing.
Staff in at least three ministries and government bodies were told not to use iPhones at work, said the sources, who declined to be named due to the sensitivity of the situation.
One of the sources said they had not yet been given a deadline to cease their iPhone use.
Apple shares were down nearly 3% in premarket trading on Thursday, after ending 3.6% lower in the previous session when China's move to ban the use of iPhones by certain officials was first reported.
Apple and China's State Council Information Office, which handles media queries on behalf of the government, did not immediately respond to requests for comment.
It was not immediately clear how widely the ban was being enforced, with a third source at one of the three ministries saying he was still using an iPhone and had not yet heard about the restriction.
A fourth source, at a Chinese regulatory body, said they had not been explicitly barred but were told they would be held responsible should any issues emerge with their use of iPhones.
A fifth source at another regulatory body said senior staff had two years ago already been required to swap their iPhones for locally made brands such as Huawei Technologies HWT.UL.
In 2020, state-owned Chinese financial publication Economic Observer reported that some government agencies had implemented rules to ban officials from using iPhones due to Apple's strict privacy rules that make it difficult for anti-corruption officials to access and investigate suspects' phones.
Apple's shares slipped on Wednesday and Thursday after the Wall Street Journal first reported the move, amid fears of tit-for-tat action as Sino-U.S. tension rise.
Bloomberg on Thursday reported that China planned to broaden the ban to state firms and agencies, citing sources.
STRONG SALES
Citi analysts noted that the news had also weighed on the shares of Apple suppliers and said the market may have "have overreacted to the news flow amidst weak confidence overall," citing how shares in suppliers of U.S. automaker Tesla TSLA.O tumbled but quickly recovered after reports of China restricting its cars from entering military complexes in 2021.
China is one of Apple's biggest markets and generates nearly a fifth of its revenue. Apple together with its suppliers employs thousands of workers in China and CEO Tim Cook stressed its long ties with the country during a March visit to Beijing.
Apple has been enjoying strong sales in China, ranking in third place in overall smartphone shipments in the second quarter according to consultancy Canalys, partly thanks to the hit to Huawei's mobile business from U.S. sanctions, which has left it the main premium smartphone maker in China.
"We believe the restrictions have the potential to slow Apple's sales growth in China," D.A. Davidson analyst Tom Forte said.
"This could provide an additional challenge for the company, as its revenues from China have already been negatively impacted by a challenging macroeconomic environment in that country."
China has increasingly emphasized using locally made tech products, as technology has become a major national security issue for Beijing and Washington.
Government agencies and state-owned enterprises (SOEs) in both countries have been the first and most important areas to push forward such a campaign.
A major part of the campaign centred on requiring government departments and SOEs to replace foreign-made products in their IT systems with domestic alternatives.
The replacement effort accelerated this year in China after an order was issued to SOEs by the state asset regulator, which required they complete the replacement tasks by 2027 in critical IT infrastructure such as office software platforms.
Chinese rivals to Apple include Xiaomi 1810.HK, Oppo and Vivo.
Huawei last week unveiled its latest Mate 60 Pro smartphone that teardown firms say contains a domestically developed advanced chip and could bring it back to rivalling Apple.
(Reporting by Hong Kong, Beijing and Shanghai Newsrooms; Additional reporting by Yuvraj Malik and Jaspreet Singh in Bengaluru; Writing by Brenda Goh; Editing by Alexander Smith and Shounak Dasgupta)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Julie Zhu and Kevin Yao HONG KONG/BEIJING, Sept 7 (Reuters) - China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work, two sources familiar with the matter said. Against a backdrop of tensions between Beijing and Washington, the extension of a ban imposed more than two years ago signals growing challenges for the U.S. company, which relies heavily on China for revenue growth and manufacturing. Huawei last week unveiled its latest Mate 60 Pro smartphone that teardown firms say contains a domestically developed advanced chip and could bring it back to rivalling Apple.
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By Julie Zhu and Kevin Yao HONG KONG/BEIJING, Sept 7 (Reuters) - China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work, two sources familiar with the matter said. A fifth source at another regulatory body said senior staff had two years ago already been required to swap their iPhones for locally made brands such as Huawei Technologies HWT.UL. In 2020, state-owned Chinese financial publication Economic Observer reported that some government agencies had implemented rules to ban officials from using iPhones due to Apple's strict privacy rules that make it difficult for anti-corruption officials to access and investigate suspects' phones.
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By Julie Zhu and Kevin Yao HONG KONG/BEIJING, Sept 7 (Reuters) - China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work, two sources familiar with the matter said. In 2020, state-owned Chinese financial publication Economic Observer reported that some government agencies had implemented rules to ban officials from using iPhones due to Apple's strict privacy rules that make it difficult for anti-corruption officials to access and investigate suspects' phones. Citi analysts noted that the news had also weighed on the shares of Apple suppliers and said the market may have "have overreacted to the news flow amidst weak confidence overall," citing how shares in suppliers of U.S. automaker Tesla TSLA.O tumbled but quickly recovered after reports of China restricting its cars from entering military complexes in 2021.
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By Julie Zhu and Kevin Yao HONG KONG/BEIJING, Sept 7 (Reuters) - China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work, two sources familiar with the matter said. Staff in at least three ministries and government bodies were told not to use iPhones at work, said the sources, who declined to be named due to the sensitivity of the situation. Apple shares were down nearly 3% in premarket trading on Thursday, after ending 3.6% lower in the previous session when China's move to ban the use of iPhones by certain officials was first reported.
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13899.0
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2023-09-07 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq futures fall on inflation concerns; Fed speakers in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-futures-fall-on-inflation-concerns-fed-speakers-in-focus
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 7 (Reuters) - The S&P 500 and Nasdaq futures fell on Thursday over concerns about sticky inflation, while investors awaited comments from key Federal Reserve officials later in the day to gauge the U.S. interest rate path.
Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that persistent inflation could lead to interest rates staying higher for longer.
Apple AAPL.O dropped 2.8% in premarket trading on a report that China was seeking to broaden iPhone ban to state firms and agencies, a day after losses in its shares weighed down all three major indexes.
Other major growth stocks Tesla TSLA.O and Nvidia NVDA.O lost 1.6% and 1.9%, respectively.
Further denting sentiment, data showed China's exports and imports fell in August, with sagging overseas demand and weak consumer spending hitting businesses in the world's second-largest economy.
Shares of U.S.-listed Chinese firms including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N fell between 2% and 2.9%.
"The twin worries of China's slowdown and the prospect of higher interest rates in the U.S. are proving hard to shift, spreading fresh unease among investors," Susannah Streeter, head of money and markets at Hargreaves Lansdown said in a note.
"Lacklustre trading is set to be the order of the day given there is so little to pin more optimistic hopes on right now."
Investors await comments from at least six Fed speakers, including policy voting members Philadelphia Fed President Patrick Harker, Vice Chair and New York Fed President John Williams, due to speak later in the day.
Traders' bets on the Fed leaving interest rates unchanged in September stood at 93%, while their odds for a pause in the November meeting were at 51.8%, down from nearly 59% a week ago, according to the CME Group's FedWatch Tool.
Investors also await initial jobless claims numbers for the week ended Sept. 2, due at 8:30 a.m. ET, as they parse through economic data for any indications of slowing inflation.
At 7:05 a.m. ET, Dow e-minis 1YMcv1 were up 9 points, or 0.03%, S&P 500 e-minis EScv1 were down 13 points, or 0.29%, and Nasdaq 100 e-minis NQcv1 were down 94.75 points, or 0.62%.
Helping keep the pressure off Dow futures, shares of McDonald's MCD.N rose 1% premarket after Wells Fargo upgraded its rating on the stock to "overweight" from "equal weight."
Automation software firm UiPathPATH.N added 5.2% on an upbeat annual revenue forecast after it topped estimates for second-quarter results.
GameStopGME.N climbed 4.8% after the videogame retailer beat Wall Street estimates for quarterly revenue and posted a smaller-than-expected loss.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple AAPL.O dropped 2.8% in premarket trading on a report that China was seeking to broaden iPhone ban to state firms and agencies, a day after losses in its shares weighed down all three major indexes. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq futures fell on Thursday over concerns about sticky inflation, while investors awaited comments from key Federal Reserve officials later in the day to gauge the U.S. interest rate path. Further denting sentiment, data showed China's exports and imports fell in August, with sagging overseas demand and weak consumer spending hitting businesses in the world's second-largest economy.
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Apple AAPL.O dropped 2.8% in premarket trading on a report that China was seeking to broaden iPhone ban to state firms and agencies, a day after losses in its shares weighed down all three major indexes. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq futures fell on Thursday over concerns about sticky inflation, while investors awaited comments from key Federal Reserve officials later in the day to gauge the U.S. interest rate path. Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that persistent inflation could lead to interest rates staying higher for longer.
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Apple AAPL.O dropped 2.8% in premarket trading on a report that China was seeking to broaden iPhone ban to state firms and agencies, a day after losses in its shares weighed down all three major indexes. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq futures fell on Thursday over concerns about sticky inflation, while investors awaited comments from key Federal Reserve officials later in the day to gauge the U.S. interest rate path. Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that persistent inflation could lead to interest rates staying higher for longer.
|
Apple AAPL.O dropped 2.8% in premarket trading on a report that China was seeking to broaden iPhone ban to state firms and agencies, a day after losses in its shares weighed down all three major indexes. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq futures fell on Thursday over concerns about sticky inflation, while investors awaited comments from key Federal Reserve officials later in the day to gauge the U.S. interest rate path. Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that persistent inflation could lead to interest rates staying higher for longer.
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