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15000.0
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2023-07-06 00:00:00 UTC
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VW ready to deal with China metal curbs if needed, chipmakers play down fallout
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AAPL
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https://www.nasdaq.com/articles/vw-ready-to-deal-with-china-metal-curbs-if-needed-chipmakers-play-down-fallout
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nan
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nan
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By Ben Blanchard and Jan Schwartz
TAIWAN, July 6 (Reuters) - Volkswagen said it is monitoring the situation on metals markets after China imposed export restrictions on two minor metals used in semiconductors and electric vehicles, while some chipmakers on Thursday played down the potential damage to supplies.
Fears are growing that more curbs on strategic exports including rare earths could be coming after a top Chinese trade adviser said on Wednesday that the limits on gallium and germanium, effective Aug. 1, were "just a start".
The abrupt announcement, days before Thursday's arrival in Beijing of U.S. Treasury Secretary Janet Yellen for a visit, sent some companies scrambling to secure supplies of the two metals and stirred concerns about a jump in prices.
It has also prompted more companies to re-think their reliance on the world's No. 2 economy.
VW, which relies on gallium and germanium for automotive products, said it was "ready to take measures together with its partners if necessary" but did not elaborate. The metals will also play a role in future autonomous driving functions, a spokesperson for the German carmaker said.
The export curbs are likely to further strain U.S.-China relations as the countries vie for dominance in semiconductor and defence technologies.
"If the talks between the two sides go well, many restrictions could be loosened, but if the talks go badly, both sides may put up more sanctions after Yellen goes home," said Capital Securities Corp analyst Liao Chien-yu.
Some industry players said the restrictions could leave China with a glut of the two metals, weighing on domestic prices even as costs overseas jumped this week.
Germanium is used in high-speed computer chips, plastics, and in military applications such as night-vision devices, as well as satellite imagery sensors. Gallium is used in radar and radio communication devices, satellites and LEDs.
Some larger chip manufacturers view China's export controls on gallium as more of a warning shot about what economic pain the country could inflict.
But if prices rise as restrictions take hold companies would have another reason to shift supply chains.
Taiwan's WIN Semiconductors 3105.TWO, which uses gallium for optoelectronic devices, told Reuters only a "small number" of substrates are purchased from China, with most of its supplies coming from Germany and Japan.
Taiwan's TSMC 2330.TW, the world's largest contract chipmaker, said it does not expect any direct impact on its production from the moves.
Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O.
Chipmaker NXP Semiconductors NXPI.O sees no material impact on its business. NXP makes some chips for the auto and communications sectors using gallium or germanium.
EXPLAINER-China's rare earths dominance in focus after mineral export curbs
FACTBOX-Where are germanium and gallium produced, what are they used for?
FACTBOX-Companies respond to China's curbs on gallium and germanium exports NL8N38S1JL
(Reporting by Reuters bureaus; Writing by Josephine Mason; Editing by Catherine Evans)
((Josephine.Mason@thomsonreuters.com; +44 207 542 7695; Reuters Messaging: josephine.mason.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.
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Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. Fears are growing that more curbs on strategic exports including rare earths could be coming after a top Chinese trade adviser said on Wednesday that the limits on gallium and germanium, effective Aug. 1, were "just a start". The abrupt announcement, days before Thursday's arrival in Beijing of U.S. Treasury Secretary Janet Yellen for a visit, sent some companies scrambling to secure supplies of the two metals and stirred concerns about a jump in prices.
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Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. Some larger chip manufacturers view China's export controls on gallium as more of a warning shot about what economic pain the country could inflict. EXPLAINER-China's rare earths dominance in focus after mineral export curbs FACTBOX-Where are germanium and gallium produced, what are they used for?
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Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. By Ben Blanchard and Jan Schwartz TAIWAN, July 6 (Reuters) - Volkswagen said it is monitoring the situation on metals markets after China imposed export restrictions on two minor metals used in semiconductors and electric vehicles, while some chipmakers on Thursday played down the potential damage to supplies. Taiwan's WIN Semiconductors 3105.TWO, which uses gallium for optoelectronic devices, told Reuters only a "small number" of substrates are purchased from China, with most of its supplies coming from Germany and Japan.
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Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. By Ben Blanchard and Jan Schwartz TAIWAN, July 6 (Reuters) - Volkswagen said it is monitoring the situation on metals markets after China imposed export restrictions on two minor metals used in semiconductors and electric vehicles, while some chipmakers on Thursday played down the potential damage to supplies. Gallium is used in radar and radio communication devices, satellites and LEDs.
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15001.0
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2023-07-06 00:00:00 UTC
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2 Must-Have Specialized ETFs for the Long-Term Investor
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AAPL
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https://www.nasdaq.com/articles/2-must-have-specialized-etfs-for-the-long-term-investor
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nan
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nan
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Constructing a long-term investment portfolio can be a lot like building a house.
First, you pour in the foundation. These are the tried and true pillars that have been around for decades — and ideally, are highly liquid. For investors that prefer exchange traded funds (ETFs), this may include the SPDR Dow Jones Industrial Average ETF (DIA), the SPDR S&P 500 ETF (SPY) or the Invesco Nasdaq 100 ETF (QQQ). Depending on risk tolerance, these are often complemented with some bond ETFs.
In the main part of the house, there’s room for different asset classes that improve diversification. Allocations to developed international markets, emerging markets and U.S. small caps are common. Maybe a real estate investment trust (REIT) fund or a commodities fund.
Top it all off with smaller weightings in a few ‘specialty’ funds that target a more specific investment class or theme. These are designed to further improve diversification and bring ‘alpha,’ or excess returns, to a portfolio.
It sounds simple, but with more than 3,000 ETFs available these days, searching for the right investments can be daunting. Getting the initial groundwork laid is manageable — but with so many specialized ETFs popping up, adding the finishing touches is hard.
Artificial intelligence, fintech, cybersecurity, clean energy and electric vehicles are popular themes — and certainly worthy of consideration. But investors should not forget the more tenured, fundamentally-driven investment themes that have been highly successful over the years.
Make room in the blueprints for these two specialized ETFs.
What Does it Mean to Have an Economic Moat?
The VanEck Morningstar Wide Moat ETF (BATS:MOAT) appropriately conjures up images of castles and drawbridges because it invests in companies with sustainable competitive advantages, or “moats.” A moat can stem from being bigger, having lower costs, intellectual property (such as patent protection) or other economic advantages.
Combined with its second major tenant, attractive valuation, the fund has generated market-topping returns since its April 2012 inception. Through June 30, 2023, MOAT is up 14.5% on an annualized basis compared to 13.3% for the S&P 500 Index. The outperformance year-to-date (22.8% versus 16.9%) has been particularly impressive.
Despite the strong track record, MOAT is inexpensive as far as specialty ETFs go. The $424 billion fund’s 0.46% expense ratio is a price worth paying to gain exposure to a unique set of companies that is difficult to replicate on an individual stock basis.
MOAT currently holds 54 large-cap equities but, unlike most U.S. large-cap funds, is not heavily weighted towards mega-cap technology names. Whereas Apple, Microsoft, Alphabet and Amazon represent about 20% of SPY, MOAT has a 5% weighting in these names — and doesn’t hold Apple, a rarity among S&P 500 benchmarked funds. Instead, less familiar companies like Transunion, Tyler Technologies and Ecolab are MOAT’s lead horses, with no one stock commanding more than a 2.7% weight.
Why Are ‘Cash Cows’ Attractive Investments?
The Pacer US Cash Cows 100 ETF (BATS: COWZ) holds companies that have high free cash flow yields. Free cash flow is cash that is left over after operating expenses, debt interest, taxes and long-term investments. It can be put towards shares repurchases, dividends or acquisitions. When divided by share price, it becomes free cash flow yield.
From a fundamentals standpoint, this stable of so-called “cash cows” is attractive because its companies generate more cash than is required to run their businesses. This means more cash for growth projects or things that enhance shareholder value.
The COWZ investment process is simple. Start with the Russell 1000 list of companies. Screen for the 100 companies with the highest free cash flow yields over the trailing 12-month period and weight them by this metric (with a maximum weight of 2%). The result: a 100-stock portfolio with a free cash flow yield more than triple that of the Russell 1000.
The fund’s 0.49% expense ratio is reasonable, if not cheap considering the long-term outperformance. COWZ has produced a 12.9% annual return since its December 2016 launch, outpacing the Russell 1000 Index by more than 1%.
Energy comprises the biggest chunk of the sector pie at 35%. This makes sense considering the strong free cash flow generated by oil and gas producers like Marathon Petroleum, Valero Energy and Cheniere Energy. The strategy has underperformed in 2023, which could make it a good time to ‘milk it for all it’s worth.’
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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Artificial intelligence, fintech, cybersecurity, clean energy and electric vehicles are popular themes — and certainly worthy of consideration. The $424 billion fund’s 0.46% expense ratio is a price worth paying to gain exposure to a unique set of companies that is difficult to replicate on an individual stock basis. Instead, less familiar companies like Transunion, Tyler Technologies and Ecolab are MOAT’s lead horses, with no one stock commanding more than a 2.7% weight.
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The VanEck Morningstar Wide Moat ETF (BATS:MOAT) appropriately conjures up images of castles and drawbridges because it invests in companies with sustainable competitive advantages, or “moats.” A moat can stem from being bigger, having lower costs, intellectual property (such as patent protection) or other economic advantages. The Pacer US Cash Cows 100 ETF (BATS: COWZ) holds companies that have high free cash flow yields. When divided by share price, it becomes free cash flow yield.
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For investors that prefer exchange traded funds (ETFs), this may include the SPDR Dow Jones Industrial Average ETF (DIA), the SPDR S&P 500 ETF (SPY) or the Invesco Nasdaq 100 ETF (QQQ). The VanEck Morningstar Wide Moat ETF (BATS:MOAT) appropriately conjures up images of castles and drawbridges because it invests in companies with sustainable competitive advantages, or “moats.” A moat can stem from being bigger, having lower costs, intellectual property (such as patent protection) or other economic advantages. The Pacer US Cash Cows 100 ETF (BATS: COWZ) holds companies that have high free cash flow yields.
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Top it all off with smaller weightings in a few ‘specialty’ funds that target a more specific investment class or theme. When divided by share price, it becomes free cash flow yield. The result: a 100-stock portfolio with a free cash flow yield more than triple that of the Russell 1000.
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15002.0
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2023-07-06 00:00:00 UTC
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Tech Stocks Roared Back in 1H23; Will the Bull Run Sustain in 2H?
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AAPL
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https://www.nasdaq.com/articles/tech-stocks-roared-back-in-1h23-will-the-bull-run-sustain-in-2h
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nan
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nan
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Tech stocks roared back, wrapping up the first six months with massive gains. The prospect of less aggressive interest rate hikes in the future, moderation in the inflation rate, and the grand entrance of Generative AI (Artificial Intelligence) are behind investors’ buoyant mood. While the economy still exhibits weakness and valuations appear rich, the recovery in cloud computing and AI-led opportunities indicate that the bull run in tech could sustain in the second half of 2023.
While the sector is expected to benefit from secular trends, investors should note that there could be select buying opportunities across the tech landscape in the second half of this year. But before we move ahead, let’s look at the recent price performance of technology stocks.
Tech Stocks – The Stellar 1H Price Performance
Contrary to the fears of recession and weak end-market demand, the buzz around AI led Nvidia's (NASDAQ:NVDA) stock to attain $1 trillion in market cap. Meanwhile, shares of Meta Platforms (NASDAQ:META) are up about 145% year-to-date, thanks to the implementation of deep cost-cutting measures and growing momentum in its products and platforms.
At the same time, Amazon's (NASDAQ:AMZN) stock has gained over 55%, reflecting the easing of the inflationary environment, cost-cutting initiatives, and an expected recovery in its AWS (Amazon Web Services) segment.
Apple's (NASDAQ:AAPL) stock grew about 48% due to the momentum in Services revenue and easing supply-chain headwinds. Meanwhile, Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) stocks also defied the weak general market trend and have gained 42% and 38, respectively, on a year-to-date basis.
Thanks to this recovery, the tech-heavy NASDAQ 100 Index (NDX) is up about 39%. Further, tech and AI-focused ETFs (Exchange-Traded funds) like the Invesco QQQ Trust (QQQ) and Global X Robotics & Artificial Intelligence ETF (BOTZ) have also delivered substantial gains and witnessed large inflows of cash.
The 2H 2023 Outlook
Thanks to the solid secular tailwinds, it is hard to find shorts among these large tech companies. Exposure to generative AI, a recovery in cloud computing, and a rebound in end-market demand could continue to fuel growth for these companies.
TipRanks’ Stock Comparison tool shows that Wall Street analysts are bullish about these tech stocks. All of these stocks command a Strong Buy consensus rating on TipRanks. However, analysts’ average 12-month price targets show limited upside potential.
Nvidia is the only big tech stock offering double-digit upside potential based on the average price target. Despite the stellar gains, the double-digit upside potential in NVDA stock shows the recognition of NVDA’s leadership in the AI space.
Besides for NVDA, shares of Amazon could exceed analysts’ average price target, reflecting reacceleration in AWS’ growth rate, AI-led tailwinds (AWS’ Generative AI offerings), and cost-saving measures.
Besides for these mega-cap stocks, the Top Wall Street analysts are also bullish about Advanced Micro Devices (NASDAQ:AMD), CrowdStrike (NASDAQ:CRWD), ACM Research (NASDAQ:ACMR), Axon Enterprise (NASDAQ:AXON), and EngageSmart (NYSE:ESMT).
These tech stocks offer decent upside potential over the next 12 months based on analysts’ price targets.
Bottom Line
Despite macro uncertainty, the recent rally in technology stocks shows investors’ optimism in the sector. Further, analysts’ Strong Buy consensus rating on these stocks also substantiates the bullish view. Moreover, the expected increase in IT spending by enterprises on cloud and AI applications bodes well for growth.
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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Apple's (NASDAQ:AAPL) stock grew about 48% due to the momentum in Services revenue and easing supply-chain headwinds. While the economy still exhibits weakness and valuations appear rich, the recovery in cloud computing and AI-led opportunities indicate that the bull run in tech could sustain in the second half of 2023. While the sector is expected to benefit from secular trends, investors should note that there could be select buying opportunities across the tech landscape in the second half of this year.
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Apple's (NASDAQ:AAPL) stock grew about 48% due to the momentum in Services revenue and easing supply-chain headwinds. Nvidia is the only big tech stock offering double-digit upside potential based on the average price target. Besides for NVDA, shares of Amazon could exceed analysts’ average price target, reflecting reacceleration in AWS’ growth rate, AI-led tailwinds (AWS’ Generative AI offerings), and cost-saving measures.
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Apple's (NASDAQ:AAPL) stock grew about 48% due to the momentum in Services revenue and easing supply-chain headwinds. Tech Stocks – The Stellar 1H Price Performance Contrary to the fears of recession and weak end-market demand, the buzz around AI led Nvidia's (NASDAQ:NVDA) stock to attain $1 trillion in market cap. Meanwhile, Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG) stocks also defied the weak general market trend and have gained 42% and 38, respectively, on a year-to-date basis.
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Apple's (NASDAQ:AAPL) stock grew about 48% due to the momentum in Services revenue and easing supply-chain headwinds. Tech Stocks – The Stellar 1H Price Performance Contrary to the fears of recession and weak end-market demand, the buzz around AI led Nvidia's (NASDAQ:NVDA) stock to attain $1 trillion in market cap. Exposure to generative AI, a recovery in cloud computing, and a rebound in end-market demand could continue to fuel growth for these companies.
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15003.0
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2023-07-06 00:00:00 UTC
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Here's How Much Higher Wall Street Thinks Apple Stock Will Go
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AAPL
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https://www.nasdaq.com/articles/heres-how-much-higher-wall-street-thinks-apple-stock-will-go
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nan
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nan
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Apple (NASDAQ: AAPL) is sizzling hot these days. Shares of the technology giant have skyrocketed by nearly 50% year to date. It also just became the first publicly traded company to achieve a market cap of over $3 trillion.
Can Apple keep the momentum rolling? Here's how much higher Wall Street thinks Apple stock will go in the next year.
Bullish blahs
Wall Street is definitely bullish about Apple. Of the 38 analysts surveyed by Refinitiv recently who cover it, 11 rate the stock as a strong buy. Another 21 recommend buying the stock.
That leaves only six analysts who aren't as supportive. But even among that group, there aren't any who believe that Apple will underperform or recommend selling the stock.
While Wall Street is generally bullish about Apple, though, analysts aren't overly optimistic about the stock's prospects in the near term. The average 12-month price target is actually 2% below Apple's closing price from Monday's abbreviated trading session.
Sure, there are some more exuberant outliers. Citi analyst Atif Malik thinks the stock could jump by nearly 25%. However, the consensus seems to be that Apple's upward potential is limited at best.
Behind the lack of enthusiasm
Why don't analysts think that Apple's tremendous momentum from the first half of 2023 will continue? Its valuation is a key factor.
Apple's shares currently trade at a forward price-to-earnings ratio of nearly 29. By comparison, the S&P 500's forward earnings multiple stands at a little over 19.
UBS analyst David Vogt downgraded Apple from buy to neutral last month. Although Vogt acknowledged that the stock deserves a premium valuation, he believes that the company's "growth is likely to remain under pressure."
Another firm, D.A. Davidson, also downgraded the stock in June from buy to neutral. The concern behind this downgrade was that the potential for Apple's new Vision Pro mixed-reality headset is already priced into the stock.
Is Wall Street right?
Apple makes up a bigger percentage of my portfolio than any other individual holding (excluding exchange-traded funds). It's also my longest-held position. I like the stock.
However, I understand Wall Street analysts' reluctance to predict that the stock will move higher. Remember, their price targets are for the next 12 months. A lot could happen during that period. The U.S. economy could enter into a mild recession by early 2024. Even if it doesn't, the tech-fueled stock market rally could fade, causing Apple's shares to pull back.
I also recognize that Apple's valuation is higher than it has been in years. That factor alone could limit the stock's ability to deliver significant gains over the near term.
Looking to the future
That said, I think there's a good reason why so many analysts still rate Apple stock as a buy or strong buy despite their unambitious 12-month price targets. My hunch is that they fully expect the stock to continue its winning ways over the long run.
Wedbush Securities' Dan Ives makes a pretty good bull argument for Apple beyond the limited period for Wall Street's price targets. He predicts a "massive renaissance of growth over the next 12 to 18 months."
Ives noted that around one-fourth of Apple's customers haven't upgraded their iPhones in more than four years. He thinks that some of the more bearish analysts have "severely underestimated the massive installed base upgrade opportunity."
Apple's services business is especially worth watching, according to Ives. He also has great expectations for the Vision Pro. Ives believes that the headset could have "thousands of use cases." He also thinks that the "bigger story" with the Vision Pro is the potential for an expanded app store that gives Apple a significant competitive advantage.
Ives even projects that Apple has a chance of hitting a market cap of $4 trillion by 2025. Perhaps that's overly optimistic, but I wouldn't bet against it.
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 July 3, 2023
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Keith Speights 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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Apple (NASDAQ: AAPL) is sizzling hot these days. While Wall Street is generally bullish about Apple, though, analysts aren't overly optimistic about the stock's prospects in the near term. Wedbush Securities' Dan Ives makes a pretty good bull argument for Apple beyond the limited period for Wall Street's price targets.
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Apple (NASDAQ: AAPL) is sizzling hot these days. Here's how much higher Wall Street thinks Apple stock will go in the next year. While Wall Street is generally bullish about Apple, though, analysts aren't overly optimistic about the stock's prospects in the near term.
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Apple (NASDAQ: AAPL) is sizzling hot these days. While Wall Street is generally bullish about Apple, though, analysts aren't overly optimistic about the stock's prospects in the near term. Looking to the future That said, I think there's a good reason why so many analysts still rate Apple stock as a buy or strong buy despite their unambitious 12-month price targets.
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Apple (NASDAQ: AAPL) is sizzling hot these days. Here's how much higher Wall Street thinks Apple stock will go in the next year. I like the stock.
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15004.0
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2023-07-06 00:00:00 UTC
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Billionaire Ken Fisher Says "High-Quality Growth" Is the Key to Investing in Artificial Intelligence. These Two AI Stocks Are His Biggest Holdings by Far.
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AAPL
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https://www.nasdaq.com/articles/billionaire-ken-fisher-says-high-quality-growth-is-the-key-to-investing-in-artificial
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nan
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nan
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Last year will probably take its place among the worst stock market declines in Wall Street history. Each of the major market indexes took it on the chin and plunged into bear market territory, resulting in the most dismal market performance since 2008.
This year, however, has kicked off in fine fashion. Those same market indexes that delivered dismal performances last year are making up lost ground in 2023, each rebounding more than 20% from their respective bottoms, signaling the start of a new bull market -- at least by that measure.
So, what's fueling this banner year? Simply put: recent advances in the field of artificial intelligence (AI). Wall Street and Main Street alike are captivated by the potentially far-reaching applications of generative AI and next-generation chatbots, including ChatGPT.
Some of the world's most accomplished investors have climbed aboard the AI train, loading up on shares of stocks well positioned to profit from the AI revolution. Here's a look at what one of them has to say.
Image source: Getty Images.
Ken Fisher
Ken Fisher is a well-known name in investment circles. The billionaire philanthropist, author, financial columnist, and money manager rose to prominence after founding Fisher Investments in 1979, turning a $250 million investment into $211 billion in assets under management.
Fisher's firm caters to both high-net-worth individuals and institutional investors. He also penned the "Portfolio Strategy" column in Forbes from 1984 through 2016, making him the longest continuously running columnist in the publication's history. So when Fisher talks, investors listen.
The rapid rise of so many AI-related stocks this year has many investors wondering if AI is already in a bubble. Fisher downplays the idea of a bubble and acknowledges that while opportunities exist, he suggests the rise of technology stocks this year is "mostly about quality growth and rebounding from its outsize 2022 bear market slide."
"It is not tiny start-ups in Silicon Valley that are driving AI," Fisher adds. "It is the big guys in chips, software, data analytics, search, and more with pole position." He adds a caveat, however: "Some AI exposure may be beneficial ... intelligent investing means seeking high-quality growth. If AI partly drives that growth, OK."
A history of quality growth
A quick look at Fisher's widely diversified holdings reveals that two AI stocks dominate his portfolio.
Fisher Asset Management holds 52.35 million shares of Apple (NASDAQ: AAPL) stock, valued at roughly $10 billion and representing more than 5% of his portfolio. And it's easy to see why the iPhone maker is Fisher's No. 1 holding.
When it comes to consistent, quality growth, it's hard to beat Apple. Over the past decade, the company has grown its revenue by 153%, while its earnings per share have surged 415%. This financial performance has sent its stock up more than 1,170%, marking the first company to surpass a $3 trillion market cap and making it the most valuable public company in the world.
CEO Tim Cook has been largely mum about the potential for AI, but Apple has a long history of integrating AI into every aspect of its products. Furthermore, the recent debut of its Vision Pro mixed-reality headset is likely the first step in a "generative AI-driven app ecosystem," according to Wedbush analyst Dan Ives. The growth will be driven by its installed base of over 2 billion active devices, including over 1 billion iPhones.
Microsoft (NASDAQ: MSFT) is Fisher's second-largest holding, with 24.46 million shares valued at more than $8.2 billion, accounting for more than 4% of his portfolio.
Like Apple, Microsoft has a history of quality growth going back years. Over the past 10 years, the company has grown its revenue by 185%, while its earnings per share have surged 295%. This financial performance sent its stock up more than 894%, pushing its market cap to $2.5 trillion, second behind just Apple.
Microsoft has made no secrets about its AI aspirations, integrating ChatGPT and generative AI into its Bing search engine, as well as ambitious plans to make the technology widely available to customers of its Azure cloud.
So what does this mean for investors?
Investors might be tempted to take a pass on Apple and Microsoft, since they're already the two largest companies in the world when measured by market cap. While that's understandable, consider this: Ives believes both companies have further to go. He suggests Apple could be worth $4 trillion by 2025, and Microsoft could join Apple in the $3 trillion club by early next year.
Market prognosticators have yet to determine how much productivity could ultimately be boosted by AI, so estimates about the market vary wildly. Two of the more conservative estimates come courtesy of Morgan Stanley and Goldman Sachs, which believe the technology could be worth $6 trillion and $7 trillion, respectively, by the end of the decade.
Given the potentially vast implications and use cases for AI, I would submit that companies that successfully harness the technology could grow much further from here. And investors won't go wrong focusing on quality growth.
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 July 3, 2023
Danny Vena has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, and Microsoft. 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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Fisher Asset Management holds 52.35 million shares of Apple (NASDAQ: AAPL) stock, valued at roughly $10 billion and representing more than 5% of his portfolio. Fisher downplays the idea of a bubble and acknowledges that while opportunities exist, he suggests the rise of technology stocks this year is "mostly about quality growth and rebounding from its outsize 2022 bear market slide." Furthermore, the recent debut of its Vision Pro mixed-reality headset is likely the first step in a "generative AI-driven app ecosystem," according to Wedbush analyst Dan Ives.
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Fisher Asset Management holds 52.35 million shares of Apple (NASDAQ: AAPL) stock, valued at roughly $10 billion and representing more than 5% of his portfolio. Fisher downplays the idea of a bubble and acknowledges that while opportunities exist, he suggests the rise of technology stocks this year is "mostly about quality growth and rebounding from its outsize 2022 bear market slide." Microsoft (NASDAQ: MSFT) is Fisher's second-largest holding, with 24.46 million shares valued at more than $8.2 billion, accounting for more than 4% of his portfolio.
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Fisher Asset Management holds 52.35 million shares of Apple (NASDAQ: AAPL) stock, valued at roughly $10 billion and representing more than 5% of his portfolio. Fisher downplays the idea of a bubble and acknowledges that while opportunities exist, he suggests the rise of technology stocks this year is "mostly about quality growth and rebounding from its outsize 2022 bear market slide." If AI partly drives that growth, OK." A history of quality growth A quick look at Fisher's widely diversified holdings reveals that two AI stocks dominate his portfolio.
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Fisher Asset Management holds 52.35 million shares of Apple (NASDAQ: AAPL) stock, valued at roughly $10 billion and representing more than 5% of his portfolio. If AI partly drives that growth, OK." A history of quality growth A quick look at Fisher's widely diversified holdings reveals that two AI stocks dominate his portfolio. This financial performance has sent its stock up more than 1,170%, marking the first company to surpass a $3 trillion market cap and making it the most valuable public company in the world.
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15005.0
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2023-07-06 00:00:00 UTC
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Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-fidelity-high-dividend-etf-fdvv-a-strong-etf-right-now-6
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nan
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nan
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The Fidelity High Dividend ETF (FDVV) made its debut on 09/12/2016, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Fidelity. FDVV has been able to amass assets over $1.56 billion, making it one of the largest ETFs in the Style Box - All Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the Fidelity Core Dividend Index.
The Fidelity High Dividend Index reflects the performance of stocks of large and mid-capitalization high-dividend-paying companies that are expected to continue to pay and grow their dividends.
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 FDVV are 0.29%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.60%.
Sector Exposure and Top Holdings
ETFs offer 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.
For FDVV, it has heaviest allocation in the Information Technology sector --about 25.30% of the portfolio --while Financials and Industrials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.85% of total assets, followed by Microsoft Corp (MSFT) and Procter & Gamble Co (PG).
FDVV's top 10 holdings account for about 29.33% of its total assets under management.
Performance and Risk
Year-to-date, the Fidelity High Dividend ETF has gained about 9.05% so far, and it's up approximately 14.69% over the last 12 months (as of 07/06/2023). FDVV has traded between $33.02 and $40.08 in this past 52-week period.
The ETF has a beta of 1.01 and standard deviation of 16.88% for the trailing three-year period. With about 114 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $8.09 billion in assets, iShares Core S&P U.S. Value ETF has $14.06 billion. DFAT has an expense ratio of 0.28% and IUSV 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 - All 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.
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
Fidelity High Dividend ETF (FDVV): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): 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 5.85% of total assets, followed by Microsoft Corp (MSFT) and Procter & Gamble Co (PG). Click to get this free report Fidelity High Dividend ETF (FDVV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. The Fidelity High Dividend ETF (FDVV) made its debut on 09/12/2016, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
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Click to get this free report Fidelity High Dividend ETF (FDVV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.85% of total assets, followed by Microsoft Corp (MSFT) and Procter & Gamble Co (PG). Alternatives Fidelity High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market.
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Click to get this free report Fidelity High Dividend ETF (FDVV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.85% of total assets, followed by Microsoft Corp (MSFT) and Procter & Gamble Co (PG). The Fidelity High Dividend ETF (FDVV) made its debut on 09/12/2016, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.85% of total assets, followed by Microsoft Corp (MSFT) and Procter & Gamble Co (PG). Click to get this free report Fidelity High Dividend ETF (FDVV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. The Fidelity High Dividend ETF (FDVV) made its debut on 09/12/2016, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
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15006.0
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2023-07-06 00:00:00 UTC
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Kopin Corp is the Technology Seen Behind Smart AR Glasses
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AAPL
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https://www.nasdaq.com/articles/kopin-corp-is-the-technology-seen-behind-smart-ar-glasses
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nan
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nan
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High-resolution microdisplay maker Kopin Co. (NASDAQ: KOPN) stock is still trading down over 80% from its $13.62 post-COVID highs in 2021. The business has improved since then, but shares are trading down significantly. The global artificial intelligence (AI) mania has spread across all levels of technology and industry as it’s seen helping to enhance application and user experience.
As investors search for the next big technology breakthrough, Apple Inc. (NASDAQ: AAPL) unveiled its newest upcoming innovation, the Apple Vision Pro. The $3 500 augmented reality (AR) smart glasses or goggles are expected to launch in 2024. Rumors of lighter AR glasses are in the works for release in 2025.
One of the oldest leading manufacturers of smart glass microdisplay lenses for wearables has been under the radar for years, Kopin. Kopin supplies MicroLED displays for Vuzix Co. (NASDAQ: VUZI) as well as Alphabet Inc. (NASDAQ: GOOGL) and competes with Microsoft Co. (NASDAQ: MVSI) acquired HoloLens maker Microvision.
3 Million Nits Brightness Milestone
On June 7, 2023, Kopin announced it hit a milestone in the development of ultra-high brightness for its 2K x 2K monochrome MicroLED display. AR requires extremely high brightness since it must be visible against a bright background to see crisp images clearly in bright daylight. Kopin's one-inch diagonal 2K x 2K MicroLED display has been developed through its proprietary backplane and drive technology to produce brightness levels over 2.8 million units, with production display brightness growing to 3.2 to 3.5 million nits. Nits are a measurement of brightness in displays. Apple iPhone on HDR generates up to 1200 nits. High-end OLED smart TVs generate up to 2,000 nits.
MicroLED Evolution for AR
Kopin’s Senior Vice President of Business Development Strategy commented, "MicroLED displays can achieve brightness levels that are necessary to allow AR systems to be fully deployed in bright ambient conditions. We believe the 2K x 2K MicroLED that we are developing is by far the highest-resolution LED microdisplay that has ever been developed. It incorporates several proprietary design features that overcome challenges which previously limited the use of this technology.” Kopin will start integrating these MicroLED displays into production.
Accelerating Product Sales
On May 11, 2023, Kopin reported its Q1 2023 results for the quarter ending March 2023. The Company reported revenues of $10.8 million, down (7%) year-over-year (YoY) from $11.6 million in the year-ago period. Product revenues rose 17.6%, with defense products growing 35% YoY to $1.7 million.
Industrial revenue fell (39%) to $0.6 million. Funded research and development revenues fell (41%) or $2 million as defense development programs progressed into production. Net loss was $2.6 million or ($0.03) per share. EPS beat analyst estimates by $0.01, and revenues beat by $965K.
New CEO Insights
Newly appointed Kopin CEO Michael Murray expressed how the company is seeing results from its reset course and focus at Kopin. The company has renewed its emphasis on quality and efficiency, resulting in production rate improvement and less material usage. This has enabled the company to produce products more efficiently while improving margins from an optimized workforce. The company is targeting a cash flow breakdown by the end of the year. He sees international and domestic defense demand as a growth driver driven by “… the need for advanced augmentation and visualization of the analog and digital environments.” On June 2, 2023, Stifel started coverage of Kopin with a Buy rating and a $3.00 price target.
Kopin analyst ratings and price targets are at MarketBeat.
Weekly Descending Triangle Breakout
The weekly candlestick chart on KOPN illustrates the weekly descending triangle that commenced after peaking at $2.88 in March 2022. Shares continued to make lower highs on bounces, rejecting the breakout attempts on the descending trendline.
Shares attempted to form a weekly market structure low (MSL) breakout through the $1.53 trigger in January 2023 but only lasted for a single weekly candle before flushing straight back down into the triangle and hitting a low of $0.94 in March 2023, forming a flat-bottom horizontal trendline for the triangle.
As the descending trendline closed in on the flat-bottom horizontal trendline nearing the apex, KOPN finally broke out in May 2023 through $1.12. KOPN spent the next four consecutive weeks rising to a high of $2.50 in the last week of May before forming a market structure high (MSH) sell trigger on a breakdown under $1.98. The weekly RSI fell back below the oversold 70-band. Pullback support levels are $1.74, $1.53 weekly MSL trigger, $1.37 and $1.26.
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 investors search for the next big technology breakthrough, Apple Inc. (NASDAQ: AAPL) unveiled its newest upcoming innovation, the Apple Vision Pro. The global artificial intelligence (AI) mania has spread across all levels of technology and industry as it’s seen helping to enhance application and user experience. It incorporates several proprietary design features that overcome challenges which previously limited the use of this technology.” Kopin will start integrating these MicroLED displays into production.
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As investors search for the next big technology breakthrough, Apple Inc. (NASDAQ: AAPL) unveiled its newest upcoming innovation, the Apple Vision Pro. 3 Million Nits Brightness Milestone On June 7, 2023, Kopin announced it hit a milestone in the development of ultra-high brightness for its 2K x 2K monochrome MicroLED display. Kopin's one-inch diagonal 2K x 2K MicroLED display has been developed through its proprietary backplane and drive technology to produce brightness levels over 2.8 million units, with production display brightness growing to 3.2 to 3.5 million nits.
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As investors search for the next big technology breakthrough, Apple Inc. (NASDAQ: AAPL) unveiled its newest upcoming innovation, the Apple Vision Pro. 3 Million Nits Brightness Milestone On June 7, 2023, Kopin announced it hit a milestone in the development of ultra-high brightness for its 2K x 2K monochrome MicroLED display. Kopin's one-inch diagonal 2K x 2K MicroLED display has been developed through its proprietary backplane and drive technology to produce brightness levels over 2.8 million units, with production display brightness growing to 3.2 to 3.5 million nits.
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As investors search for the next big technology breakthrough, Apple Inc. (NASDAQ: AAPL) unveiled its newest upcoming innovation, the Apple Vision Pro. Kopin's one-inch diagonal 2K x 2K MicroLED display has been developed through its proprietary backplane and drive technology to produce brightness levels over 2.8 million units, with production display brightness growing to 3.2 to 3.5 million nits. Industrial revenue fell (39%) to $0.6 million.
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15007.0
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2023-07-06 00:00:00 UTC
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Guru Fundamental Report for AAPL - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-49
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click 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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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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15008.0
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2023-07-06 00:00:00 UTC
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Should First Trust Dow 30 Equal Weight ETF (EDOW) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-first-trust-dow-30-equal-weight-etf-edow-be-on-your-investing-radar
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nan
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nan
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The First Trust Dow 30 Equal Weight ETF (EDOW) was launched on 08/08/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by First Trust Advisors. It has amassed assets over $201.13 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
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.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.90%.
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.
This ETF has heaviest allocation to the Information Technology sector--about 22.60% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Microsoft Corporation (MSFT) accounts for about 3.72% of total assets, followed by Salesforce, Inc. (CRM) and Apple Inc. (AAPL).
The top 10 holdings account for about 35.07% of total assets under management.
Performance and Risk
EDOW seeks to match the performance of the Dow Jones Industrial Average Equal Weight Index before fees and expenses. The Dow Jones Industrial Average Equal Weight Index is an equally weighted index designed to be a price neutral version of the price-weighted DJIA.
The ETF has added about 5.12% so far this year and it's up approximately 11.64% in the last one year (as of 07/06/2023). In the past 52-week period, it has traded between $24.82 and $30.43.
The ETF has a beta of 0.91 and standard deviation of 15.91% for the trailing three-year period. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust Dow 30 Equal Weight 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, EDOW 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 $334.04 billion in assets, SPDR S&P 500 ETF has $422.44 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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
First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : 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, Microsoft Corporation (MSFT) accounts for about 3.72% of total assets, followed by Salesforce, Inc. (CRM) and Apple Inc. (AAPL). Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : 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. The First Trust Dow 30 Equal Weight ETF (EDOW) was launched on 08/08/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : 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, Microsoft Corporation (MSFT) accounts for about 3.72% of total assets, followed by Salesforce, Inc. (CRM) and Apple Inc. (AAPL). Performance and Risk EDOW seeks to match the performance of the Dow Jones Industrial Average Equal Weight Index before fees and expenses.
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Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : 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, Microsoft Corporation (MSFT) accounts for about 3.72% of total assets, followed by Salesforce, Inc. (CRM) and Apple Inc. (AAPL). Alternatives First Trust Dow 30 Equal Weight 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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Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : 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, Microsoft Corporation (MSFT) accounts for about 3.72% of total assets, followed by Salesforce, Inc. (CRM) and Apple Inc. (AAPL). The First Trust Dow 30 Equal Weight ETF (EDOW) was launched on 08/08/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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15009.0
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2023-07-06 00:00:00 UTC
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UBS Reiterates Apple (AAPL) Neutral Recommendation
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AAPL
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https://www.nasdaq.com/articles/ubs-reiterates-apple-aapl-neutral-recommendation
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nan
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nan
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Fintel reports that on July 5, 2023, UBS reiterated coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation.
Analyst Price Forecast Suggests 0.47% Upside
As of July 6, 2023, the average one-year price target for Apple is 192.24. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents an increase of 0.47% from its latest reported closing price of 191.33.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. 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 6402 funds or institutions reporting positions in Apple. This is a decrease of 10 owner(s) or 0.16% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 27.88%. Total shares owned by institutions decreased in the last three months by 2.32% to 9,919,670K shares.
The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.82% ownership of the company. In it's prior filing, the firm reported owning 895,136K shares, representing an increase of 2.23%. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.21% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.81% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 234,017K shares representing 1.49% ownership of the company. In it's prior filing, the firm reported owning 226,281K shares, representing an increase of 3.31%. The firm increased its portfolio allocation in AAPL by 22.14% 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. 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)
SCHEDULE 13G RELEVANT SUBSIDIARIES AND MEMBERS OF FILING GROUP
SCHEDULE 13G JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(k)(1)
Form of CEO Restricted Stock Unit Award Agreement under 20
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 July 5, 2023, UBS reiterated coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 27.88%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on July 5, 2023, UBS reiterated coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 27.88%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on July 5, 2023, UBS reiterated coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 27.88%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on July 5, 2023, UBS reiterated coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.87%, an increase of 27.88%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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15010.0
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2023-07-05 00:00:00 UTC
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MORNING BID ASIA-Yellen in China
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AAPL
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https://www.nasdaq.com/articles/morning-bid-asia-yellen-in-china
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nan
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nan
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By Jamie McGeever
July 6 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist.
U.S. Treasury Secretary Janet Yellen touches down in Beijing on Thursday for a three-day visit just as trade tensions between the world's two superpowers ratchet up another notch, while a Malaysian interest rate decision tops the region's economic calendar.
Australian trade data and Taiwanese inflation figures are on tap too, and equity investors will digest a mixed earnings report from Taiwan's Foxconn2317.TW, a major iPhone assembler for Apple Inc AAPL.O.
Asian stocks go into Thursday's session on the defensive, underperforming on Wednesday after figures showed that China's service sector activity expanded at the slowest pace in five months in June.
Foxconn's results may help lift the gloom, after the firm on Wednesday forecast a brighter third quarter ahead of peak shopping season at the end of the year. But that is only relative to a near 14% drop in Q2 revenue year-on-year.
China remains front and center for investors. U.S.-China trade tensions appear to be intensifying by the day - the latest flare up coming over Beijing's restrictions on exports of some metals - not the best backdrop for Yellen's visit on Thursday.
U.S. officials says they expect "candid" discussions, and Washington has said it "firmly" opposes the new export controls on gallium and germanium, which go into producing semiconductors and other electronics.
However well - or otherwise - Yellen's visit goes, there will be no quick fix. Former Vice Commerce Minister Wei Jianguo said the controls are "just a start".
In Malaysia, meanwhile, the central bank on Thursday is expected to leave key rates unchanged at 3.00% and keep them there for the rest of the year, putting it in line with regional peers in India, South Korea, Indonesia and New Zealand who have already ended their tightening cycles.
Headline inflation eased to a one-year low of 2.8% in May, but core inflation moderated only a bit to 3.5%, suggesting Bank Negara Malaysia (BNM) will hold its key rate higher for longer.
The central bank delivered a surprise hike in May. Last week, it said it would intervene in the foreign exchange market to stabilize the ringgit to counter what it said were "excessive" recent losses.
The ringgit was one of Asia's worst-performing currencies in the first half of the year, losing almost 6% of its value against the dollar.
Here are key developments that could provide more direction to markets on Thursday:
- U.S. Treasury Secretary Janet Yellen visits China
- Australia trade (May)
- Taiwan inflation (June)
Malaysian interest rates https://tmsnrt.rs/3XBEzYx
Asian FX vs U.S. dollar this year https://tmsnrt.rs/3NYLzvp
(By Jamie McGeever; Editing by Lisa Shumaker)
((jamie.mcgeever@thomsonreuters.com; Reuters Messaging: jamie.mcgeever.thomsonreuters.com@reuters.net, Twitter: @ReutersJamie))
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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Australian trade data and Taiwanese inflation figures are on tap too, and equity investors will digest a mixed earnings report from Taiwan's Foxconn2317.TW, a major iPhone assembler for Apple Inc AAPL.O. U.S. Treasury Secretary Janet Yellen touches down in Beijing on Thursday for a three-day visit just as trade tensions between the world's two superpowers ratchet up another notch, while a Malaysian interest rate decision tops the region's economic calendar. In Malaysia, meanwhile, the central bank on Thursday is expected to leave key rates unchanged at 3.00% and keep them there for the rest of the year, putting it in line with regional peers in India, South Korea, Indonesia and New Zealand who have already ended their tightening cycles.
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Australian trade data and Taiwanese inflation figures are on tap too, and equity investors will digest a mixed earnings report from Taiwan's Foxconn2317.TW, a major iPhone assembler for Apple Inc AAPL.O. By Jamie McGeever July 6 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. U.S. Treasury Secretary Janet Yellen touches down in Beijing on Thursday for a three-day visit just as trade tensions between the world's two superpowers ratchet up another notch, while a Malaysian interest rate decision tops the region's economic calendar.
|
Australian trade data and Taiwanese inflation figures are on tap too, and equity investors will digest a mixed earnings report from Taiwan's Foxconn2317.TW, a major iPhone assembler for Apple Inc AAPL.O. U.S. Treasury Secretary Janet Yellen touches down in Beijing on Thursday for a three-day visit just as trade tensions between the world's two superpowers ratchet up another notch, while a Malaysian interest rate decision tops the region's economic calendar. In Malaysia, meanwhile, the central bank on Thursday is expected to leave key rates unchanged at 3.00% and keep them there for the rest of the year, putting it in line with regional peers in India, South Korea, Indonesia and New Zealand who have already ended their tightening cycles.
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Australian trade data and Taiwanese inflation figures are on tap too, and equity investors will digest a mixed earnings report from Taiwan's Foxconn2317.TW, a major iPhone assembler for Apple Inc AAPL.O. U.S.-China trade tensions appear to be intensifying by the day - the latest flare up coming over Beijing's restrictions on exports of some metals - not the best backdrop for Yellen's visit on Thursday. In Malaysia, meanwhile, the central bank on Thursday is expected to leave key rates unchanged at 3.00% and keep them there for the rest of the year, putting it in line with regional peers in India, South Korea, Indonesia and New Zealand who have already ended their tightening cycles.
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15011.0
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2023-07-05 00:00:00 UTC
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Technology Sector Update for 07/05/2023: BABA, QBTS, RXT, AAPL
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-07-05-2023%3A-baba-qbts-rxt-aapl
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nan
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nan
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Tech stocks were weaker late Wednesday, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.5% and the Philadelphia Semiconductor index falling 1.8%.
In company news, Alibaba (BABA) shares rose 0.3% after it signed a strategic cooperation pact with the Chinese province of Zhejiang to develop the digital economy, the Securities Times reported Wednesday.
D-Wave Quantum (QBTS) shares were up 4.7% after the company regained compliance with the New York Stock Exchange's minimum share price requirement.
Rackspace Technology (RXT) said Wednesday it formed a partnership with online Google Cloud customer community C2C Global, expanding its Google Cloud offerings. Rackspace shares were down 5.7%.
Apple (AAPL) has lost its appeal in the UK over a patent infringement case against Optis Cellular Technology, Reuters reported Tuesday. Apple shares were shedding 0.6%.
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) has lost its appeal in the UK over a patent infringement case against Optis Cellular Technology, Reuters reported Tuesday. Tech stocks were weaker late Wednesday, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.5% and the Philadelphia Semiconductor index falling 1.8%. In company news, Alibaba (BABA) shares rose 0.3% after it signed a strategic cooperation pact with the Chinese province of Zhejiang to develop the digital economy, the Securities Times reported Wednesday.
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Apple (AAPL) has lost its appeal in the UK over a patent infringement case against Optis Cellular Technology, Reuters reported Tuesday. In company news, Alibaba (BABA) shares rose 0.3% after it signed a strategic cooperation pact with the Chinese province of Zhejiang to develop the digital economy, the Securities Times reported Wednesday. Rackspace Technology (RXT) said Wednesday it formed a partnership with online Google Cloud customer community C2C Global, expanding its Google Cloud offerings.
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Apple (AAPL) has lost its appeal in the UK over a patent infringement case against Optis Cellular Technology, Reuters reported Tuesday. In company news, Alibaba (BABA) shares rose 0.3% after it signed a strategic cooperation pact with the Chinese province of Zhejiang to develop the digital economy, the Securities Times reported Wednesday. D-Wave Quantum (QBTS) shares were up 4.7% after the company regained compliance with the New York Stock Exchange's minimum share price requirement.
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Apple (AAPL) has lost its appeal in the UK over a patent infringement case against Optis Cellular Technology, Reuters reported Tuesday. Tech stocks were weaker late Wednesday, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.5% and the Philadelphia Semiconductor index falling 1.8%. Rackspace shares were down 5.7%.
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15012.0
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2023-07-05 00:00:00 UTC
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After Hours Most Active for Jul 5, 2023 : FTRE, BAC, PHIN, INTC, AAPL, PFE, GOOGL, AMZN, AZTA, T, PLD, COTY
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jul-5-2023-%3A-ftre-bac-phin-intc-aapl-pfe-googl-amzn-azta-t-pld
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -6.29 to 15,197.49. The total After hours volume is currently 84,036,645 shares traded.
The following are the most active stocks for the after hours session:
Fortrea Holdings Inc. (FTRE) is unchanged at $37.00, with 9,306,639 shares traded., following a 52-week high recorded in today's regular session.
Bank of America Corporation (BAC) is +0.06 at $29.14, with 4,973,087 shares traded. BAC's current last sale is 83.26% of the target price of $35.
PHINIA Inc. (PHIN) is -0.76 at $35.99, with 4,117,690 shares traded.
Intel Corporation (INTC) is -0.05 at $32.46, with 3,042,830 shares traded. INTC's current last sale is 103.05% of the target price of $31.5.
Apple Inc. (AAPL) is -0.03 at $191.30, with 2,929,441 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Pfizer, Inc. (PFE) is unchanged at $36.46, with 2,488,057 shares traded. PFE's current last sale is 81.02% of the target price of $45.
Alphabet Inc. (GOOGL) is -0.05 at $121.70, with 2,392,931 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.02 at $130.36, with 1,792,336 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Azenta, Inc. (AZTA) is unchanged at $45.78, with 1,679,897 shares traded. AZTA's current last sale is 78.26% of the target price of $58.5.
AT&T Inc. (T) is +0.01 at $16.08, with 1,214,554 shares traded. As reported by Zacks, the current mean recommendation for T is in the "buy range".
Prologis, Inc. (PLD) is unchanged at $123.99, with 1,099,751 shares traded. As reported by Zacks, the current mean recommendation for PLD is in the "buy range".
Coty Inc. (COTY) is +0.03 at $12.55, with 1,097,019 shares traded. COTY's current last sale is 96.54% of the target price of $13.
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 -0.03 at $191.30, with 2,929,441 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Fortrea Holdings Inc. (FTRE) is unchanged at $37.00, with 9,306,639 shares traded., following a 52-week high recorded in today's regular session.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.03 at $191.30, with 2,929,441 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
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Apple Inc. (AAPL) is -0.03 at $191.30, with 2,929,441 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 84,036,645 shares traded.
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Apple Inc. (AAPL) is -0.03 at $191.30, with 2,929,441 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -6.29 to 15,197.49.
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15013.0
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2023-07-05 00:00:00 UTC
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Apple Hospitality Acquires Courtyard By Marriott Cleveland University Circle
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AAPL
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https://www.nasdaq.com/articles/apple-hospitality-acquires-courtyard-by-marriott-cleveland-university-circle
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nan
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nan
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(RTTNews) - Apple Hospitality REIT, Inc. (APLE) Wednesday announced the acquisition of the newly renovated Courtyard by Marriott Cleveland University Circle for $31 million.
"We are pleased to grow our portfolio with the acquisition of this custom-designed, recently renovated Courtyard by Marriott in the heart of Cleveland's University Circle district," said Nelson Knight, President, Real Estate and Investments of Apple Hospitality.
The 154-room Courtyard Cleveland University Circle is located at 2021 Cornell Road, Cleveland, Ohio. The Hotel opened in April 2013 and recently underwent a complete renovation of its guest rooms and interior public spaces, including new signage, an elevated bar experience, enhanced meeting facilities, an expanded fitness center and the addition of one guest room.
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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(RTTNews) - Apple Hospitality REIT, Inc. (APLE) Wednesday announced the acquisition of the newly renovated Courtyard by Marriott Cleveland University Circle for $31 million. "We are pleased to grow our portfolio with the acquisition of this custom-designed, recently renovated Courtyard by Marriott in the heart of Cleveland's University Circle district," said Nelson Knight, President, Real Estate and Investments of Apple Hospitality. The Hotel opened in April 2013 and recently underwent a complete renovation of its guest rooms and interior public spaces, including new signage, an elevated bar experience, enhanced meeting facilities, an expanded fitness center and the addition of one guest room.
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(RTTNews) - Apple Hospitality REIT, Inc. (APLE) Wednesday announced the acquisition of the newly renovated Courtyard by Marriott Cleveland University Circle for $31 million. "We are pleased to grow our portfolio with the acquisition of this custom-designed, recently renovated Courtyard by Marriott in the heart of Cleveland's University Circle district," said Nelson Knight, President, Real Estate and Investments of Apple Hospitality. The 154-room Courtyard Cleveland University Circle is located at 2021 Cornell Road, Cleveland, Ohio.
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(RTTNews) - Apple Hospitality REIT, Inc. (APLE) Wednesday announced the acquisition of the newly renovated Courtyard by Marriott Cleveland University Circle for $31 million. "We are pleased to grow our portfolio with the acquisition of this custom-designed, recently renovated Courtyard by Marriott in the heart of Cleveland's University Circle district," said Nelson Knight, President, Real Estate and Investments of Apple Hospitality. 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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(RTTNews) - Apple Hospitality REIT, Inc. (APLE) Wednesday announced the acquisition of the newly renovated Courtyard by Marriott Cleveland University Circle for $31 million. "We are pleased to grow our portfolio with the acquisition of this custom-designed, recently renovated Courtyard by Marriott in the heart of Cleveland's University Circle district," said Nelson Knight, President, Real Estate and Investments of Apple Hospitality. The 154-room Courtyard Cleveland University Circle is located at 2021 Cornell Road, Cleveland, Ohio.
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15014.0
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2023-07-05 00:00:00 UTC
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The 7 Best Cybersecurity Stocks to Buy in July
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AAPL
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https://www.nasdaq.com/articles/the-7-best-cybersecurity-stocks-to-buy-in-july
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While most everyone appreciates the conveniences that digitalization and its underlying connectivity foster, investors should nevertheless consider the best cybersecurity stocks to buy. Although people should think the best of each other, that’s just not reality. Crimes happen and increasingly, they occur in the digital space. Therefore, investing in cybersecurity makes much logical sense.
Further, the backdrop of nefarious activity on the internet makes a cynically excellent case for July cybersecurity stock picks. According to Cybercrime Magazine, criminality in the digital ecosystem may cost the world up to $10.5 trillion annually. And that horrible forecast is for 2025. Indeed, just in 2015, cybercrimes cost the global economy $3 trillion.
As well, because digital trends have basically encompassed many if not all facets of everyday life, that only opens the door for more nefarious activity. Therefore, buy cybersecurity stocks not only for their relevance but also because it’s just common sense.
IBM (IBM)
Source: BeeBright / Shutterstock
Although a relatively boring legacy technology enterprise, IBM (NYSE:IBM) makes a great case for the best cybersecurity stocks. Sure, it’s the old dog in the young person’s tech space. However, IBM in recent years has aggressively invested in relevant endeavors such as cloud computing, the blockchain, and of course cybersecurity.
Featuring a multi-tiered security network for enterprise-level clients, IBM offers various threat intelligence and cloud security solutions. Especially, the latter service will be critical as more enterprises migrate their data to the cloud. However, IBM also offers ransomware solutions, which represents a major problem in the digital ecosystem.
So far this year, IBM hasn’t exactly charmed investors, let’s just be real. Since the January opener, IBM stock slipped almost 6%. At the same time, the company carries a forward yield of 4.97%, far above the tech sector’s average yield of 1.37%. Therefore, IBM makes a great case for July cybersecurity stock picks.
Iron Mountain (IRM)
Source: Shutterstock
An information management enterprise, Iron Mountain (NYSE:IRM) is historically associated with physical data storage. Such an analog business might seem incongruent with the best cybersecurity stocks. However, I would respectfully disagree with such a notion. After all, given enough time and resources, an expert hacker can probably break into any system. However, you can’t hack your way into physical documents.
However, Iron Mountain isn’t just about the analog world. In fact, it provides myriad digital resources centered on the management of data centers, cloud network security, and financial reporting services, among other contemporary relevancies. Like IBM above, Iron Mountain may seem like a boring enterprise. However, investing in cybersecurity doesn’t have to be exciting. It might even be better if the practice wasn’t raising your blood pressure.
Adding to Iron Mountain’s cred is its forward yield of 4.32%. To be fair, the high payout ratio of 182.7% is distracting. Nevertheless, the underlying business remains relevant, making IRM one of the top cyber stocks.
Cisco Systems (CSCO)
Source: Song_about_summer / Shutterstock
Yet another staid enterprise among the best cybersecurity stocks to buy, Cisco Systems (NASDAQ:CSCO) probably won’t join the class of meme trades anytime soon. However, as a top-tier cybersecurity play, Cisco makes plenty of sense. A digital communications technology conglomerate, the brand enjoys an excellent reputation and acumen. So far, the market agrees, with shares up over 8% since the Jan. opener.
According to its website, Cisco’s information technology services for industrial networks empower security, simplicity, and scale. Again, with more companies migrating their data to the cloud, securing the underlying networks against threats becomes vital. With Cisco’s brand power and market footprint, it carries a significant advantage over the competition. If you’re looking to buy cybersecurity stocks, also carries the advantage of passive income. With a forward yield of 3.01%, it’s not the most generous payout. However, with a payout ratio of 38.54%, investors don’t have to worry too much about yield sustainability.
Broadcom (AVGO)
Source: Shutterstock
While Broadcom (NASDAQ:AVGO) often generates headlines for its on-again, off-again relationship with consumer tech giant Apple (NASDAQ:AAPL), the former enterprise makes a strong case for the best cybersecurity stocks to buy. Known for its wide range of semiconductor products, it also offers relevancies for cybersecurity because of its infrastructural software offerings. Since the start of the year, AVGO gained a remarkable 58%.
While AVGO certainly runs hot, so too do cybercrimes, which may cynically help augment Broadcom’s rally. According to its website, the company “…offers a broad portfolio of embedded security solutions, industry-leading mainframe security and payment authentication software, and a best-in-class suite of integrated Symantec cyber security software.”
Though not nearly as generous as other top cyber stocks that pay dividends, Broadcom relatively holds its own with a forward yield of 2.1%. You also have to figure out that it’s one of the more exciting propositions so AVGO enjoys more chart mobility. As well, Broadcom commands 13 years of consecutive dividend increases, a status it won’t want to give up too easily.
Check Point Software (CHKP)
Source: Shutterstock
An American-Israeli multinational provider of software and combined hardware and software products, Check Point Software (NASDAQ:CHKP) ranks as one of the most relevant names among the best cybersecurity stocks. Per its public profile, Check Point’s services include solutions for network, endpoint, cloud, mobile, and data security. Since the start of the year, CHKP just dipped a bit below parity.
Still, on a relative basis, the red ink could signal an undervalued opportunity among July cybersecurity stock picks. While the underlying space isn’t bulletproof – no sector is – cybercriminals aren’t exactly letting up on their dubious activities. As the world becomes more connected, it’s almost inevitable that digital threats will increase. Check Point stays on top of the threat profile, making it a worthwhile contender.
Another benefit to consider with CHKP is the underlying financial stability. According to investment resource Gurufocus, the company incurs zero debt, affording it flexibility. Also, it’s an operationally efficient enterprise, featuring a Piotroski F-Score of 7 out of 9.
Fortinet (FTNT)
Source: Shutterstock
Headquartered in Sunnyvale, California, Fortinet (NASDAQ:FTNT) develops and sells security solutions like firewalls, endpoint security, and intrusion detection systems. As nefarious activity online only increases in scope and scale, FTNT easily makes a case for the best cybersecurity stocks. Since the beginning of this year, FTNT skyrocketed to nearly 54%. Over the trailing year, shares gained almost 27%.
For the time being, Fortinet lost much of its vigor, especially when borrowing costs spiked throughout 2022. However, the market may have been irrational during this period. It’s not as if cybercriminals stopped their activities. In fact, Forbes pointed out that the victim count of data breaches increased to over 422 million in 2022, up 128 million from the prior year.
Financially, a major drawback to FTNT is its value proposition (or lack thereof). Right now, shares trade at a forward multiple of 51.76. While that’s quite elevated compared to the median 28.26 times in the software industry, the specific relevance tied to Fortinet makes it one of the best ideas for investing in cybersecurity.
Palo Alto Networks (PANW)
Source: Shutterstock
One of the top names among the best cybersecurity stocks, Palo Alto Networks (NASDAQ:PANW) offers myriad services in digital security. In particular, its core product involves a platform that includes advanced firewalls and cloud-based offerings that extend said firewalls to cover other avenues related to security. Thanks to its extraordinarily relevant profile, PANW gained nearly 84% of its equity value.
Fundamentally, Palo Alto cynically benefits due to the costs associated with cyberattacks. For example, a 2019 CNBC article mentioned that digital breaches cost companies $200,000 on average. Sadly, such a heavy toll often puts many of these smaller enterprises out of business. Worryingly, the impact could be even greater now because of the “forced” digitalization following Covid-19 (i.e. remote work).
Now, the blistering performance of PANW comes at a cost. Per Gurufocus, PANW trades at a trailing multiple of 404.19. Against forward earnings, it trades at 52.08 times. Either way, we’re talking about incredibly rich premiums. Still, the rising demand profile means that PANW is worth consideration for July cybersecurity stock picks.
On the date of publication, Josh Enomoto did not have (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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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The post The 7 Best Cybersecurity Stocks to Buy in July 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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Broadcom (AVGO) Source: Shutterstock While Broadcom (NASDAQ:AVGO) often generates headlines for its on-again, off-again relationship with consumer tech giant Apple (NASDAQ:AAPL), the former enterprise makes a strong case for the best cybersecurity stocks to buy. While that’s quite elevated compared to the median 28.26 times in the software industry, the specific relevance tied to Fortinet makes it one of the best ideas for investing in cybersecurity. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies.
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Broadcom (AVGO) Source: Shutterstock While Broadcom (NASDAQ:AVGO) often generates headlines for its on-again, off-again relationship with consumer tech giant Apple (NASDAQ:AAPL), the former enterprise makes a strong case for the best cybersecurity stocks to buy. Iron Mountain (IRM) Source: Shutterstock An information management enterprise, Iron Mountain (NYSE:IRM) is historically associated with physical data storage. Per its public profile, Check Point’s services include solutions for network, endpoint, cloud, mobile, and data security.
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Broadcom (AVGO) Source: Shutterstock While Broadcom (NASDAQ:AVGO) often generates headlines for its on-again, off-again relationship with consumer tech giant Apple (NASDAQ:AAPL), the former enterprise makes a strong case for the best cybersecurity stocks to buy. InvestorPlace - Stock Market News, Stock Advice & Trading Tips While most everyone appreciates the conveniences that digitalization and its underlying connectivity foster, investors should nevertheless consider the best cybersecurity stocks to buy. Palo Alto Networks (PANW) Source: Shutterstock One of the top names among the best cybersecurity stocks, Palo Alto Networks (NASDAQ:PANW) offers myriad services in digital security.
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Broadcom (AVGO) Source: Shutterstock While Broadcom (NASDAQ:AVGO) often generates headlines for its on-again, off-again relationship with consumer tech giant Apple (NASDAQ:AAPL), the former enterprise makes a strong case for the best cybersecurity stocks to buy. Further, the backdrop of nefarious activity on the internet makes a cynically excellent case for July cybersecurity stock picks. Therefore, IBM makes a great case for July cybersecurity stock picks.
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15015.0
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2023-07-05 00:00:00 UTC
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PREVIEW-Samsung profit likely lowest in more than 14 years as chip glut persists
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AAPL
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https://www.nasdaq.com/articles/preview-samsung-profit-likely-lowest-in-more-than-14-years-as-chip-glut-persists
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nan
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nan
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By Joyce Lee
SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut.
Operating profit for the world's biggest maker of memory chips, smartphones and TVs likely fell to 555 billion won ($427 million) in the April-June quarter, according to a Refinitiv SmartEstimate from 27 analysts, weighted toward those who are more consistently accurate.
If so, it would be Samsung's lowest profit since the fourth quarter of 2008, when Samsung Electronics reported a consolidated operating loss of about 740 billion won. It compares with an operating profit of 14.1 trillion won in the April-June quarter last year.
This is because its chip division, traditionally its biggest earner, likely reported quarterly losses of around 3 trillion to 4 trillion won as memory chip prices fell further and its inventory values were slashed.
Prices of DRAM memory chips - widely used in smartphones, PCs and servers - continued to slide in the quarter, falling about 13% to 18% according to TrendForce, as chip buyers refrained from purchasing new chips and used up inventories.
However, the price decline slowed from previous quarters as Samsung Electronics and memory chip peers cut supply, and is expected to hit bottom around the third quarter, although a substantial recovery might not come until 2024, analysts said.
Despite the current downturn, Samsung is working to increase its share of chip demand from the exploding field of artificial intelligence (AI), such as with high bandwidth memory (HBM) and chip contract manufacturing, they said.
Its mobile business likely reported an operating profit of around 3.3 trillion won, according to an average of forecasts from five analysts, as efforts to cut marketing costs offset a slight drop in smartphone shipments versus the first quarter, when Samsung launched its latest flagship model.
Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone.
($1 = 1,298.7800 won)
(Reporting by Joyce Lee; Editing by Sonali Paul)
((joyce.lee@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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Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. By Joyce Lee SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut. Its mobile business likely reported an operating profit of around 3.3 trillion won, according to an average of forecasts from five analysts, as efforts to cut marketing costs offset a slight drop in smartphone shipments versus the first quarter, when Samsung launched its latest flagship model.
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Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. Operating profit for the world's biggest maker of memory chips, smartphones and TVs likely fell to 555 billion won ($427 million) in the April-June quarter, according to a Refinitiv SmartEstimate from 27 analysts, weighted toward those who are more consistently accurate. If so, it would be Samsung's lowest profit since the fourth quarter of 2008, when Samsung Electronics reported a consolidated operating loss of about 740 billion won.
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Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. By Joyce Lee SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut. This is because its chip division, traditionally its biggest earner, likely reported quarterly losses of around 3 trillion to 4 trillion won as memory chip prices fell further and its inventory values were slashed.
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Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. By Joyce Lee SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut. It compares with an operating profit of 14.1 trillion won in the April-June quarter last year.
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15016.0
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2023-07-05 00:00:00 UTC
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Triple Threat: 3 Mighty Brands Poised for 30% Upside (or More)
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AAPL
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https://www.nasdaq.com/articles/triple-threat%3A-3-mighty-brands-poised-for-30-upside-or-more
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When it comes to investing, brand plays a big role in a stock’s success. No one wants to buy stock in a company with a bad brand or image. Further, companies without any brand recognition are often overlooked by investors, even if it’s a good business. That’s why we’re on the hunt for great brands with 30% upside.
Investing in brand stocks is not as hard (or as futile) as it sounds. One might think you had to buy Apple (NASDAQ:AAPL) in the 1980s or after the dot-com crash to make boatloads of money. Or at the very least, buy when Steve Jobs introduced the iPhone in 2007.
However, that’s not the case.
Six years after the iPhone was released, it was a superstar device that had changed the technology landscape. Had investors bought and held then — 10 years ago in 2013 — Apple stock would have appreciated by more than 1,100%.
Five years ago, it was pretty clear that Apple was a roaring success. Even buying Apple stock then would have generated a return in excess of 300%. For what it’s worth, the stock has doubled in the last three years as well.
So what’s the point?
Investing in stocks with strong brands can lead to consistent and outsized returns. So let’s look for brands with 30% upside.
Brands With 30% Upside: Starbucks (SBUX)
Source: monticello / Shutterstock.com
Starbucks (NASDAQ:SBUX) has been and remains one of the top brands in the world. Investors have come to depend on its long-term consistency while consumers have come to depend on Starbucks’ day-to-day consistency.
It’s become a staple in North America, while China has blossomed into Starbucks’ second-largest market.
Starbucks has gone through a few bumpy patches, but overall continues to do quite well. The stock bottomed in May 2022 rather than in the fourth quarter like many stocks. While it enjoyed a powerful rally off the low, the stock has been struggling for upside while finding support just below $100.
Millennials and young investors grew up with Starbucks being a popular destination. It still remains a popular destination for teens. While a recession would cause the stock price to tumble lower, I think it would only serve as an opportunity for long-term investors.
A 30% rally from current levels would send Starbucks stock to just above the current all-time high.
High Upside Stocks: Nike (NKE)
Source: Shutterstock
The Nike (NYSE:NKE) “swoosh” has become one of the most recognizable symbols in the world. Not just on the playing field, but in all of the world’s logos. Whether it’s on the football field in the U.S., the basketball court in China, or the soccer pitch in Europe, consumers and athletes know Nike.
In fact, in the U.S. Nike scored the highest when it came to the “leading sportswear brands ranked by brand awareness in the United States in 2022”. Adidas and Puma were close seconds.
That said, the stock has not enjoyed its run lately.
After suffering a peak-to-trough decline of 54%, shares are still down about 40% from the all-time high. Nike just reported a mixed quarterly result on June 29, which doesn’t seem to be helping with sentiment.
Should the economy avoid a recession, Nike stock should do well. Either way though, it’s one of the brands with 30% upside, as its long-term trajectory remains attractive. For what it’s worth, a 65% rally would send shares back to the all-time high.
A Business With Momentum: Lululemon Athletica (LULU)
Source: Sorbis / Shutterstock.com
Lululemon Athletica (NASDAQ:LULU) had a bumpy run at one point, but this company has caught fire. It dominates the higher-end athleisure space and has found a way to connect with its male and female customers. Its clothing line, workout apparel, and equipment have helped increase brand awareness, while its direct-to-consumer segment has increased margins and built customer loyalty.
The Piper Sandler teen survey used in our case for Starbucks also applies for Lululemon and Nike.
Nike ranks No. 1 among teens for footwear, as well as clothing brands. Lululemon is No. 3 in clothing brands and No. 4 on “top shopping websites.”
Unlike Nike, there’s no mistaking the reaction to Lululemon’s most recent quarterly results. The stock ripped higher in early June when management delivered a top- and bottom-line beat and issued strong guidance.
Given the momentum in the business and the strength in the stock, Lululemon is one of our brands with 30% upside. From current levels, a 30% rally would send shares to new highs — albeit, just barely.
On the date of publication, Bret Kenwell did not have (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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
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The post Triple Threat: 3 Mighty Brands Poised for 30% Upside (or More) 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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One might think you had to buy Apple (NASDAQ:AAPL) in the 1980s or after the dot-com crash to make boatloads of money. Whether it’s on the football field in the U.S., the basketball court in China, or the soccer pitch in Europe, consumers and athletes know Nike. The stock ripped higher in early June when management delivered a top- and bottom-line beat and issued strong guidance.
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One might think you had to buy Apple (NASDAQ:AAPL) in the 1980s or after the dot-com crash to make boatloads of money. Brands With 30% Upside: Starbucks (SBUX) Source: monticello / Shutterstock.com Starbucks (NASDAQ:SBUX) has been and remains one of the top brands in the world. High Upside Stocks: Nike (NKE) Source: Shutterstock The Nike (NYSE:NKE) “swoosh” has become one of the most recognizable symbols in the world.
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One might think you had to buy Apple (NASDAQ:AAPL) in the 1980s or after the dot-com crash to make boatloads of money. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When it comes to investing, brand plays a big role in a stock’s success. Brands With 30% Upside: Starbucks (SBUX) Source: monticello / Shutterstock.com Starbucks (NASDAQ:SBUX) has been and remains one of the top brands in the world.
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One might think you had to buy Apple (NASDAQ:AAPL) in the 1980s or after the dot-com crash to make boatloads of money. Investing in stocks with strong brands can lead to consistent and outsized returns. So let’s look for brands with 30% upside.
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15017.0
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2023-07-05 00:00:00 UTC
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TSMC does not expect direct production impact from China's metal export curbs
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AAPL
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https://www.nasdaq.com/articles/tsmc-does-not-expect-direct-production-impact-from-chinas-metal-export-curbs
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nan
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nan
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Recasts, adds details, comments from other companies and analysts
TAIPEI, July 6 (Reuters) - Taiwan's TSMC 2330.TW, the world's largest contract chipmaker, said on Thursday it does not expect any direct impact on its production from China's decision to restrict exports of two metals widely used in semiconductors and electric vehicles.
In a move that a top Chinese trade adviser warned was "just a start," Beijing said on Monday it would limit exports of products made from the minor metals of gallium and germanium to protect national security. That followed the U.S. decision to impose export restrictions to curb China's access to key technologies used for artificial intelligence.
Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O.
"After evaluation, we do not expect the export restrictions on raw materials gallium and germanium will have any direct impact on TSMC's production," Taiwan Semiconductor Manufacturing Co said in an emailed statement.
"We will continue to monitor the situation closely," it added, without elaborating.
TSMC's Taipei-listed shares extended losses on Thursday, falling more than 2%, compared with a 1.5% drop on the broader market .TWII, in part due to worries about worsening China-U.S. trade tensions and ahead of U.S. Treasury Secretary Janet Yellen's visit to Beijing this week.
"If the talks between the two sides go well, many restrictions could be loosened, but if the talks go badly, both sides may put up more sanctions after Yellen goes home," said Capital Securities Corp analyst Liao Chien-yu.
Taiwan's WIN Semiconductors 3105.TWO, which uses gallium for optoelectronic devices, told Reuters only a "small number" of substrates are purchased from China, with most of its supplies coming from Germany and Japan.
China's restrictions will have a very limited impact on the company's short-term procurement and wafer production and delivery, WIN added.
Visual Photonics Epitaxy said it had noticed little effect so far from China's export restrictions. Its shares were down more than 4% on Thursday.
(Reporting by Ben Blanchard; Additional reporting by Roger Tung; Editing by Tom Hogue and Jamie Freed)
((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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Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. Recasts, adds details, comments from other companies and analysts TAIPEI, July 6 (Reuters) - Taiwan's TSMC 2330.TW, the world's largest contract chipmaker, said on Thursday it does not expect any direct impact on its production from China's decision to restrict exports of two metals widely used in semiconductors and electric vehicles. In a move that a top Chinese trade adviser warned was "just a start," Beijing said on Monday it would limit exports of products made from the minor metals of gallium and germanium to protect national security.
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Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. Recasts, adds details, comments from other companies and analysts TAIPEI, July 6 (Reuters) - Taiwan's TSMC 2330.TW, the world's largest contract chipmaker, said on Thursday it does not expect any direct impact on its production from China's decision to restrict exports of two metals widely used in semiconductors and electric vehicles. "After evaluation, we do not expect the export restrictions on raw materials gallium and germanium will have any direct impact on TSMC's production," Taiwan Semiconductor Manufacturing Co said in an emailed statement.
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Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. Recasts, adds details, comments from other companies and analysts TAIPEI, July 6 (Reuters) - Taiwan's TSMC 2330.TW, the world's largest contract chipmaker, said on Thursday it does not expect any direct impact on its production from China's decision to restrict exports of two metals widely used in semiconductors and electric vehicles. "After evaluation, we do not expect the export restrictions on raw materials gallium and germanium will have any direct impact on TSMC's production," Taiwan Semiconductor Manufacturing Co said in an emailed statement.
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Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. Recasts, adds details, comments from other companies and analysts TAIPEI, July 6 (Reuters) - Taiwan's TSMC 2330.TW, the world's largest contract chipmaker, said on Thursday it does not expect any direct impact on its production from China's decision to restrict exports of two metals widely used in semiconductors and electric vehicles. That followed the U.S. decision to impose export restrictions to curb China's access to key technologies used for artificial intelligence.
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15018.0
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2023-07-05 00:00:00 UTC
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3 Top Stocks to Buy Now and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/3-top-stocks-to-buy-now-and-hold-forever
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nan
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nan
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Forever is a long time. But there are a select few companies that can deliver strong returns to their shareholders over the entire course of their lives. These fortune-builders typically benefit from powerful trends that help to drive their sales and profits consistently higher over time.
To help you in your search for the best long-term investments, here are three elite businesses that are set to generate wealth-building gains for their shareowners for decades to come.
1. Intuitive Surgical
The shift to robot-assisted medical procedures is likely to be one of the most lucrative in all of healthcare. That's great news for Intuitive Surgical (NASDAQ: ISRG), the global leader in robotic surgery solutions.
Intuitive's da Vinci Surgical System is the gold standard in minimally invasive surgery. The system is designed to enhance a surgeon's capabilities, with 3D high-definition views and precision-boosting tremor-filtration technology.
Intuitive has already reached critical mass. Hospitals have purchased more than 7,700 da Vinci systems. More than 60,000 surgeons are trained on them. These doctors have conducted more than 12 million surgical procedures with Intuitive's tools. Together, this represents a tremendous level of investment in Inituitive's technology on the part of healthcare facilities around the world.
Yet Intuitive still accounts for only a small portion of the overall surgical market. Healthcare is a massive industry, and Intuitive has plenty of room to expand into new procedures. For a recent example, in April, Intuitive received Food and Drug Administration (FDA) clearance for its da Vinci SP surgical system for simple prostatectomies, a procedure that can help people with enlarged prostates.
In part because of the benefits robotic surgery can provide -- including less pain for patients during recovery, lower risk of infection, smaller scars, and shorter hospital stays, according to Cleveland Clinic -- investors can expect demand for Intuitive's surgical systems and instruments to grow steadily over time.
2. ExxonMobil
Despite the rapid growth of renewable-energy sources like wind and solar power, fossil fuels still provide more than 80% of global energy consumption, according to the Energy Institute. As a leading producer of oil and gas, ExxonMobil (NYSE: XOM) stands to profit handsomely from the world's persistent need for dependable fuel supplies.
Yet while oil and gas are likely to remain in high demand for the foreseeable future, Exxon is looking even further ahead. The energy leader sees an enormous growth opportunity in low-carbon energy solutions.
Exxon is investing aggressively in carbon capture and storage, a process that can contain more than 90% of emissions from power plants and industrial sites, according to the Center for Climate and Energy Solutions. The oil giant is also building facilities for hydrogen and renewable diesel production.
It's important to note that these are not just environmentally focused endeavors. Exxon expects to generate returns on investment of 10% to 20% for these projects. Moreover, Exxon believes that its annual revenue from low-carbon solutions could eventually reach into the hundreds of billions of dollars, as businesses and governments place a greater emphasis on reducing emissions in the coming decades.
3. Apple
Apple (NASDAQ: AAPL) is the epitome of a buy-and-hold stock. The tech titan has successfully navigated -- and often led -- multiple technological shifts, including the development of the personal computer, smartphone, and wearable devices. Now, Apple is making a major push into the rapidly expanding augmented and virtual-reality market, with its new Vision Pro headsets.
Each new device Apple sells brings another person into its vast ecosystem of products of services. The company has a massive installed base of more than 2 billion devices. Moreover, once someone buys an iPhone, Mac, or other Apple device, that person tends to remain a loyal customer. This situation creates steadily growing demand for the tech juggernaut's ever-expanding array of services, which includes popular offerings, like Apple Pay, iCloud+, and Apple Music.
These dynamics also help Apple produce a staggering amount of profit, including $100 billion in 2022 alone. The tech juggernaut passes much of this cash on to its investors by way of dividends and share repurchases, both of which should help to support a rising stock price in the years ahead.
Unfortunately, many people choose to trade Apple stock based on short-term concerns. Don't make that mistake. Buy and hold this proven winner, and you'll have an excellent shot at building lasting wealth.
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 June 30, 2023
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Intuitive Surgical. 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 Apple (NASDAQ: AAPL) is the epitome of a buy-and-hold stock. For a recent example, in April, Intuitive received Food and Drug Administration (FDA) clearance for its da Vinci SP surgical system for simple prostatectomies, a procedure that can help people with enlarged prostates. In part because of the benefits robotic surgery can provide -- including less pain for patients during recovery, lower risk of infection, smaller scars, and shorter hospital stays, according to Cleveland Clinic -- investors can expect demand for Intuitive's surgical systems and instruments to grow steadily over time.
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Apple Apple (NASDAQ: AAPL) is the epitome of a buy-and-hold stock. That's great news for Intuitive Surgical (NASDAQ: ISRG), the global leader in robotic surgery solutions. Intuitive's da Vinci Surgical System is the gold standard in minimally invasive surgery.
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Apple Apple (NASDAQ: AAPL) is the epitome of a buy-and-hold stock. In part because of the benefits robotic surgery can provide -- including less pain for patients during recovery, lower risk of infection, smaller scars, and shorter hospital stays, according to Cleveland Clinic -- investors can expect demand for Intuitive's surgical systems and instruments to grow steadily over time. See the 10 stocks *Stock Advisor returns as of June 30, 2023 Joe Tenebruso has no position in any of the stocks mentioned.
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Apple Apple (NASDAQ: AAPL) is the epitome of a buy-and-hold stock. Moreover, Exxon believes that its annual revenue from low-carbon solutions could eventually reach into the hundreds of billions of dollars, as businesses and governments place a greater emphasis on reducing emissions in the coming decades. * 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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15019.0
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2023-07-05 00:00:00 UTC
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5 Bigwigs to Watch With ESG Initiatives for Long-Term Gains
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AAPL
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https://www.nasdaq.com/articles/5-bigwigs-to-watch-with-esg-initiatives-for-long-term-gains
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nan
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nan
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Environmental, social and governance (ESG) is increasingly turning out as a standard for modern-day stock investing. The standard tries to establish a platform for a company’s business values and ethics regarding social, environmental and corporate governance on a quantifiable metric. The metric measures the company’s goals and achievements toward its ESG initiatives.
The environmental aspects deal with the company’s policies toward climate change, net-zero carbon emissions and ecological conservation. The social standards indicate a company’s policies and attitudes toward its employees, suppliers, customers, and communities. Corporate governance aims to quantify the company’s management and leadership, pay structure, audits, internal control, and shareholders’ right.
The ESG standard is currently at its nascent stage with just a handful of companies have taken these initiatives. However, governments across the world are increasingly focusing on this standard in order to protect the environment, society and obviously investors who are dealing in risky assets like equities.
Stocks to Watch
At his stage, investment in ESG stocks should be prudent for the long-term. We have narrowed our search to five U.S. corporate behemoths that have taken solid ESG initiatives. Each of our picks carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five stocks in the past three months.
Image Source: Zacks Investment Research
Apple Inc. AAPL: The most renowned company in the world and the manufacturers of iPhone, iPAD and Mac computers is working with suppliers to reduce its environmental impact, using more sustainable materials in its products, and expanding recycling programs. AAPL has developed more energy-efficient processors, displays, and batteries and is working to improve air quality, reducing carbon emissions at its data centers, and investing in renewable energy.
AAPL has an expected revenue and earnings growth rate of 6.4% and 10.7%, respectively, for next year (ending September 2024). It has a long-term (3-5 years) earnings per share growth rate of 12.5%.
Microsoft Corp. MSFT: This undisputed leader of the global desktop/notebook market has taken initiatives to become carbon-negative by 2030 and remove its historical emissions since its inception in 1975 by 2050. MSFT plans zero waste across its direct waste footprint by 2030.
MSFT has an expected revenue and earnings growth rate of 10.3% and 11.8%, respectively, for the current year (ending June 2024). It has a long-term earnings per share growth rate of 11.7%.
NIKE Inc. NKE: This worldwide leader of designing, developing and marketing athletic footwear, apparel, equipment and accessories, and services has decided to increasingly adopt more recycled materials like recycled polyester in order to reduce 70% of its carbon footprint. By 2025, NKE aims to donate, refurbish, or recycle 10 times more used or defective products than it uses today.
NKE has an expected revenue and earnings growth rate of 5% and 15.2%, respectively, for the current year (ending May 2024). It has a long-term earnings per share growth rate of 15.3%.
Adobe Inc. ADBE: One of the largest software developers in the world targets to achieves a zero-carbon operational footprint, developing digital products with positive environmental impact. ADBE is looking for a 100% renewable energy target by 2035.
ADBE has an expected revenue and earnings growth rate of 9.7% and 14.3%, respectively, for the current year (ending November 2024). It has a long-term earnings per share growth rate of 13.3%.
eBay Inc. EBAY: A leading operator of online shopping and marketing place has set a Science-Based Target to reduce Scopes 1 and 2 greenhouse gas emissions by 90% by 2030. EBAY is committed to investing in clean energy sources, with a goal to use exclusively renewable energy.
EBAY has an expected revenue and earnings growth rate of 2.9% and 2%, respectively, for the current year. It has a long-term earnings per share growth rate of 9.7%.
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
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
eBay Inc. (EBAY) : Free Stock Analysis Report
Adobe Inc. (ADBE) : 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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Image Source: Zacks Investment Research Apple Inc. AAPL: The most renowned company in the world and the manufacturers of iPhone, iPAD and Mac computers is working with suppliers to reduce its environmental impact, using more sustainable materials in its products, and expanding recycling programs. AAPL has developed more energy-efficient processors, displays, and batteries and is working to improve air quality, reducing carbon emissions at its data centers, and investing in renewable energy. AAPL has an expected revenue and earnings growth rate of 6.4% and 10.7%, respectively, for next year (ending September 2024).
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Apple Inc. AAPL: The most renowned company in the world and the manufacturers of iPhone, iPAD and Mac computers is working with suppliers to reduce its environmental impact, using more sustainable materials in its products, and expanding recycling programs. AAPL has developed more energy-efficient processors, displays, and batteries and is working to improve air quality, reducing carbon emissions at its data centers, and investing in renewable energy.
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Image Source: Zacks Investment Research Apple Inc. AAPL: The most renowned company in the world and the manufacturers of iPhone, iPAD and Mac computers is working with suppliers to reduce its environmental impact, using more sustainable materials in its products, and expanding recycling programs. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. AAPL has developed more energy-efficient processors, displays, and batteries and is working to improve air quality, reducing carbon emissions at its data centers, and investing in renewable energy.
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Image Source: Zacks Investment Research Apple Inc. AAPL: The most renowned company in the world and the manufacturers of iPhone, iPAD and Mac computers is working with suppliers to reduce its environmental impact, using more sustainable materials in its products, and expanding recycling programs. AAPL has developed more energy-efficient processors, displays, and batteries and is working to improve air quality, reducing carbon emissions at its data centers, and investing in renewable energy. AAPL has an expected revenue and earnings growth rate of 6.4% and 10.7%, respectively, for next year (ending September 2024).
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15020.0
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2023-07-05 00:00:00 UTC
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PREVIEW-Samsung profit likely lowest in more than 14 years as chip glut persists
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AAPL
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https://www.nasdaq.com/articles/preview-samsung-profit-likely-lowest-in-more-than-14-years-as-chip-glut-persists-0
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nan
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nan
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By Joyce Lee
SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut.
Operating profit for the world's biggest maker of memory chips, smartphones and TVs likely fell to 555 billion won ($427 million) in the April-June quarter, according to a Refinitiv SmartEstimate from 27 analysts, weighted toward those who are more consistently accurate.
If so, it would be Samsung's lowest profit since the fourth quarter of 2008, when Samsung Electronics reported a consolidated operating loss of about 740 billion won. It compares with an operating profit of 14.1 trillion won in the April-June quarter last year.
This is because its chip division, traditionally its biggest earner, likely reported quarterly losses of around 3 trillion to 4 trillion won as memory chip prices fell further and its inventory values were slashed.
Prices of DRAM memory chips - widely used in smartphones, PCs and servers - continued to slide in the quarter, falling about 13% to 18% according to TrendForce, as chip buyers refrained from purchasing new chips and used up inventories.
However, the price decline slowed from previous quarters as Samsung Electronics and memory chip peers cut supply, and is expected to hit bottom around the third quarter, although a substantial recovery might not come until 2024, analysts said.
Despite the current downturn, Samsung is working to increase its share of chip demand from the exploding field of artificial intelligence (AI), such as with high bandwidth memory (HBM) and chip contract manufacturing, they said.
Its mobile business likely reported an operating profit of around 3.3 trillion won, according to an average of forecasts from five analysts, as efforts to cut marketing costs offset a slight drop in smartphone shipments versus the first quarter, when Samsung launched its latest flagship model.
Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone.
The tech giant will announce its preliminary second-quarter earnings results on Friday, before reporting full earnings later this month.
($1 = 1,298.7800 won)
(Reporting by Joyce Lee; Editing by Sonali Paul)
((joyce.lee@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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Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. By Joyce Lee SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut. Its mobile business likely reported an operating profit of around 3.3 trillion won, according to an average of forecasts from five analysts, as efforts to cut marketing costs offset a slight drop in smartphone shipments versus the first quarter, when Samsung launched its latest flagship model.
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Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. Operating profit for the world's biggest maker of memory chips, smartphones and TVs likely fell to 555 billion won ($427 million) in the April-June quarter, according to a Refinitiv SmartEstimate from 27 analysts, weighted toward those who are more consistently accurate. If so, it would be Samsung's lowest profit since the fourth quarter of 2008, when Samsung Electronics reported a consolidated operating loss of about 740 billion won.
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Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. By Joyce Lee SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut. This is because its chip division, traditionally its biggest earner, likely reported quarterly losses of around 3 trillion to 4 trillion won as memory chip prices fell further and its inventory values were slashed.
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Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. By Joyce Lee SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut. It compares with an operating profit of 14.1 trillion won in the April-June quarter last year.
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15021.0
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2023-07-05 00:00:00 UTC
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Netflix (NFLX) Expands Portfolio With The Burning Body Launch
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-expands-portfolio-with-the-burning-body-launch
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nan
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nan
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Netflix NFLX recently announced that its highly anticipated miniseries, The Burning Body, is set to premiere on Sep 8. The series, produced by Arcadia Motion Pictures, is inspired by a real-life crime that occurred in 2017. The story revolves around a man found burned in the Foix reservoir in the province of Barcelona.
Starring Úrsula Corberó from the hit series Money Heist and Quim Gutiérrez from Honeymoon with my Mother, The Burning Body promises to keep viewers on the edge of their seats. The cast includes José Manuel Poga, Isak Férriz, and Eva Llorach, among others.
Netflix is benefiting from a strong portfolio, with The Witcher Season 3 debuting at number one on the TV list and Extraction 2 maintaining its reign as the top film for the third consecutive week, as per the latest Top 10-week list.
As demand for quality content and captivating storytelling continues to grow, Netflix has consistently delivered with its original productions. The success of The Witcher franchise and the ongoing popularity of action films like Extraction 2 demonstrate Netflix's ability to attract and engage a global audience.
Netflix's international expansion and its growing subscriber base in regions like Asia and Europe promise growth. As demand for streaming services continues to rise worldwide, Netflix stands to benefit from its strong brand recognition and extensive content library.
Netflix has been focused on expanding its content with shows of different genres and languages. As per the Top-10 list Spain’s Through My Window: Across the Sea remained at #1 with 10.4 million views. Turkish rom-com Make Me Believe held at #2 (9.6 million views) followed by South African heist drama iNumber Number: Jozi Gold at #3 (5 million views). New entrants included India’s Lust Stories 2 (4.2 million views) and Korea’s King of Clones (2 million views).
Netflix’s Prospects Bright in 2023
Netflix shares have surged 49.7% year to date, outperforming the Zacks Consumer Discretionary sector’s return of 12.1%. NFLX shares have also outperformed Disney DIS and Apple AAPL but underperformed Amazon AMZN. Shares of Apple, Amazon and Disney have returned 4.2%, 48.1% and 55%, respectively.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
The company's prospects remain bright due to a diversified content portfolio, cheaper ad-supported plans and a password-sharing initiative despite stiff competition from Disney, Apple and Amazon.
Netflix’s ad-supported cheaper plans are gaining user attention. It launched its ad-supported service on Nov 3, 2022, with the basic plan costing $6.99 a month in the United States.
Netflix launched its paid password-sharing model in the United States on May 23, notifying members that their accounts cannot be shared for free with users outside their households.
Netflix already launched the paid sharing model in Canada, New Zealand, Spain and Portugal in first-quarter 2023. Moreover, NFLX has plans to launch the paid-sharing model in major markets like Brazil, Britain, France and Mexico.
Disney followed in the footsteps of Netflix to offer its ad-supported tier starting Dec 8, 2022. Its streaming service, Disney+, as of Apr 1, 2023, had 157.8 million paid subscribers compared with 161.8 million as of Dec 31, 2022.
Further, Amazon is reportedly planning an ad-supported tier for Prime Video. The company is likely to give Prime subscribers the option to pay more for an ad-free alternative if it introduces ads in Prime Video.
Nevertheless, Netflix is expected to continue dominating the streaming space, attributable to heavy investments in the production and distribution of localized, foreign-language content.
For the second quarter of 2023, total revenues are anticipated to be $8.242 billion, suggesting growth of 3.4% year over year or 6% on a forex-neutral basis. Netflix forecasts earnings of $2.84 per share, indicating an almost 20% decline from the figure reported in the year-ago quarter.
Currently, Netflix carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : 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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NFLX shares have also outperformed Disney DIS and Apple AAPL but underperformed Amazon AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Starring Úrsula Corberó from the hit series Money Heist and Quim Gutiérrez from Honeymoon with my Mother, The Burning Body promises to keep viewers on the edge of their seats.
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NFLX shares have also outperformed Disney DIS and Apple AAPL but underperformed Amazon AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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 Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. NFLX shares have also outperformed Disney DIS and Apple AAPL but underperformed Amazon AMZN. Netflix’s Prospects Bright in 2023 Netflix shares have surged 49.7% year to date, outperforming the Zacks Consumer Discretionary sector’s return of 12.1%.
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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 Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. NFLX shares have also outperformed Disney DIS and Apple AAPL but underperformed Amazon AMZN. Further, Amazon is reportedly planning an ad-supported tier for Prime Video.
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15022.0
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2023-07-05 00:00:00 UTC
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Foxconn Q2 sales slip 14%, Q3 outlook brighter ahead of year-end peak
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AAPL
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https://www.nasdaq.com/articles/foxconn-q2-sales-slip-14-q3-outlook-brighter-ahead-of-year-end-peak
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nan
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nan
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TAIPEI, July 5 (Reuters) - Taiwan's Foxconn, a major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that second quarter revenue dropped 13.8% year-on-year but the outlook for the third quarter was brighter ahead of peak shopping season at the end of the year.
Foxconn 2317.TW, formally called Hon Hai Precision Industry Co Ltd and the world's largest contract electronics maker, said revenue in the April-June period reached T$1.3 trillion ($41.76 billion), in line with its expectations.
For smart consumer electronics products, which include smartphones and are the company's main business driver, revenue in the second quarter dropped, coming off a higher base in the year ago period, it said in a statement without giving details.
For the month of June, sales fell 19.7% year-on-year, though at T$422.8 billion it was still the second highest figure on record for the same period.
"With the second half of the year peak season currently underway, operations will gradually ramp up," the company said.
"The outlook for the third quarter, which will be better than the second quarter, is expected to increase at an on quarter pace higher than seen in the previous two years," it said.
"When compared to the pre-pandemic period, the growth rate is expected to be approximately on par."
The first half of the year is traditionally slower for Taiwan tech manufacturers as major electronics vendors including Apple launch new products near the year-end holiday season.
Foxconn reports its second quarter earnings on Aug. 14.
Foxconn posted a 56% plunge in first-quarter net profit, lagging forecasts in its biggest quarterly fall in three years. It took a $565 million write-off linked to its 34% stake in Japanese electronics maker Sharp Corp 6753.T. Foxconn shares have risen 8.6% this year, lagging the broader Taiwan market .TWII, which is up 20.1%. They closed down 1.4% on Wednesday, compared with a 0.5% drop for the broader market.
($1 = 31.1290 Taiwan dollars)
(Reporting by Ben Blanchard; editing by Robert Birsel)
((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, July 5 (Reuters) - Taiwan's Foxconn, a major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that second quarter revenue dropped 13.8% year-on-year but the outlook for the third quarter was brighter ahead of peak shopping season at the end of the year. Foxconn 2317.TW, formally called Hon Hai Precision Industry Co Ltd and the world's largest contract electronics maker, said revenue in the April-June period reached T$1.3 trillion ($41.76 billion), in line with its expectations. For smart consumer electronics products, which include smartphones and are the company's main business driver, revenue in the second quarter dropped, coming off a higher base in the year ago period, it said in a statement without giving details.
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TAIPEI, July 5 (Reuters) - Taiwan's Foxconn, a major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that second quarter revenue dropped 13.8% year-on-year but the outlook for the third quarter was brighter ahead of peak shopping season at the end of the year. The first half of the year is traditionally slower for Taiwan tech manufacturers as major electronics vendors including Apple launch new products near the year-end holiday season. Foxconn shares have risen 8.6% this year, lagging the broader Taiwan market .TWII, which is up 20.1%.
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TAIPEI, July 5 (Reuters) - Taiwan's Foxconn, a major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that second quarter revenue dropped 13.8% year-on-year but the outlook for the third quarter was brighter ahead of peak shopping season at the end of the year. For smart consumer electronics products, which include smartphones and are the company's main business driver, revenue in the second quarter dropped, coming off a higher base in the year ago period, it said in a statement without giving details. "The outlook for the third quarter, which will be better than the second quarter, is expected to increase at an on quarter pace higher than seen in the previous two years," it said.
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TAIPEI, July 5 (Reuters) - Taiwan's Foxconn, a major iPhone assembler for Apple Inc AAPL.O, said on Wednesday that second quarter revenue dropped 13.8% year-on-year but the outlook for the third quarter was brighter ahead of peak shopping season at the end of the year. "The outlook for the third quarter, which will be better than the second quarter, is expected to increase at an on quarter pace higher than seen in the previous two years," it said. They closed down 1.4% on Wednesday, compared with a 0.5% drop for the broader market.
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15023.0
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2023-07-05 00:00:00 UTC
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What Does Warren Buffett Think About Apple's $3 Trillion Market Cap?
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AAPL
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https://www.nasdaq.com/articles/what-does-warren-buffett-think-about-apples-%243-trillion-market-cap
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nan
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nan
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Apple (NASDAQ: AAPL) just made history: Prior to June 30, no stock had ever closed with a market cap of $3 trillion or higher. But the tech giant now finds itself the sole member of the club.
Arguably, no person on the planet benefits as much from Apple reaching this milestone as Warren Buffett. But what does Buffett think about Apple's $3 trillion market cap? Well, it's complicated.
A big stake and a big smile?
First, Buffett hasn't publicly commented on Apple achieving a market cap of $3 trillion. I would have been surprised if he had said anything. But we can probably get a sense of what he's thinking based on information that is publicly available.
Apple makes up nearly 47% of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) total portfolio, making it by far Berkshire's largest holding. Buffett is Berkshire's biggest individual shareholder, with 15.6% ownership of the company.
Buffett's net worth right now tops $114 billion. Apple represents nearly $27.5 billion, or roughly 24%, of that total. It stands to reason that Buffett would have a big smile on his face as a result of Apple's growing market cap. After all, the tech stock has added well over $8 billion to his net worth in just half a year.
I doubt that the legendary investor cares about the $3 trillion threshold. But he probably likes the positive impact that Apple has made so far this year on Berkshire's portfolio.
Buffett's different way of thinking
On the other hand, Buffett has a different way of thinking, meaning he could be less happy about Apple hitting the $3 trillion market cap than most investors would be.
Why in the world wouldn't Buffett be thrilled that Apple stock has skyrocketed nearly 50% year to date? Consider what he wrote in his 2011 letter to Berkshire Hathaway shareholders:
When Berkshire buys stock in a company that is repurchasing shares, we hope for two events: First, we have the normal hope that earnings of the business will increase at a good clip for a long time to come; and second, we also hope that the stock underperforms in the market for a long time as well.
He added:
The logic is simple: If you are going to be a net buyer of stocks in the future, either directly with your own money or indirectly (through your ownership of a company that is repurchasing shares), you are hurt when stocks rise. You benefit when stocks swoon.
Buffett told CNBC earlier this year that he "loves" when Apple buys back its shares because it increases Berkshire's ownership in the company. He stated, "We'll never own a business that makes so many people happier and useful for 'em."
There's ample reason to believe that Buffett would like Berkshire to own more of Apple than it already does. But he isn't going to buy additional shares unless the price is right. The reality is that Apple's massive market cap could get in the way of Buffett buying more of the stock.
More mixed emotions
I suspect that Apple could stir more mixed emotions for Buffett over the next few years. Roughly one-fourth of the company's customers haven't upgraded their iPhones in over four years, according to Wedbush Securities' Dan Ives. That could set the stage for a big boost from upgrades in the not-too-distant future.
Apple's services business could be its biggest growth driver, though. And don't forget about the company's Vision Pro mixed-reality headset. Sure, the high price tag of the new product could limit initial commercial adoption. However, subsequent lower-cost versions, combined with creative financing plans, could change the dynamics.
A $4 trillion market cap for Apple within the next few years isn't unrealistic in my view. The stock will likely make Buffett much richer -- even if it doesn't make him happier.
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Keith Speights has positions in Apple and Berkshire Hathaway. 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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Apple (NASDAQ: AAPL) just made history: Prior to June 30, no stock had ever closed with a market cap of $3 trillion or higher. Buffett told CNBC earlier this year that he "loves" when Apple buys back its shares because it increases Berkshire's ownership in the company. Roughly one-fourth of the company's customers haven't upgraded their iPhones in over four years, according to Wedbush Securities' Dan Ives.
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Apple (NASDAQ: AAPL) just made history: Prior to June 30, no stock had ever closed with a market cap of $3 trillion or higher. But what does Buffett think about Apple's $3 trillion market cap? Apple makes up nearly 47% of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) total portfolio, making it by far Berkshire's largest holding.
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Apple (NASDAQ: AAPL) just made history: Prior to June 30, no stock had ever closed with a market cap of $3 trillion or higher. Buffett's different way of thinking On the other hand, Buffett has a different way of thinking, meaning he could be less happy about Apple hitting the $3 trillion market cap than most investors would be. Consider what he wrote in his 2011 letter to Berkshire Hathaway shareholders: When Berkshire buys stock in a company that is repurchasing shares, we hope for two events: First, we have the normal hope that earnings of the business will increase at a good clip for a long time to come; and second, we also hope that the stock underperforms in the market for a long time as well.
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Apple (NASDAQ: AAPL) just made history: Prior to June 30, no stock had ever closed with a market cap of $3 trillion or higher. Buffett's different way of thinking On the other hand, Buffett has a different way of thinking, meaning he could be less happy about Apple hitting the $3 trillion market cap than most investors would be. A $4 trillion market cap for Apple within the next few years isn't unrealistic in my view.
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15024.0
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2023-07-05 00:00:00 UTC
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Which Is the Better Buy: Apple or the S&P/TSX 60?
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AAPL
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https://www.nasdaq.com/articles/which-is-the-better-buy%3A-apple-or-the-sp-tsx-60
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nan
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nan
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As Americans celebrated all that makes their country great yesterday, I wonder how many included Apple (US:AAPL) on their list? After all, the $3 trillion-plus market capitalization was a nice Fourth of July gift for the country and its investors.
True, AAPL stock has been at these lofty levels before, but closing and holding above $3 trillion? It’s a big deal.
“The Apple bears and skeptics continue to scratch their heads as many have called for Apple’s ‘broken growth story’ this year in a tougher backdrop to which we firmly believe the exact opposite has happened with Cupertino heading into a massive renaissance of growth over the next 12 to 18 months,” Wedbush Securities senior equity research analyst Dan Ives wrote in a June 30 note to clients, according to CNBC.
AAPL stock is up nearly 54% year-to-date.
As a Canadian, I will admit some envy. By comparison, the S&P/TSX 60 Index, Canada’s most important equity index, is up less than 4% on the year.
The combined market cap of all 60 constituents in the index is $2.54 trillion, or 57% less than Apple’s. So, if you had $10,000 to invest in one of them, which would be the better buy?
The obvious answer would be to go with the index, similar to betting on the field in a horse race. However, the actual answer isn’t nearly as simple. Here’s why.
Apple Could Be on the Cusp of Renewed Growth
For the last couple of years, Wall Street, and investors in general, have contemplated Apple’s slowdown in revenue growth. After all, the iPhone is now 16 years old. There’s not much more Apple can do to make its phone materially better than anything that’s come before it. Further, its competitors continue to innovate, so the choice isn’t nearly as easy as it once was.
While the iPhone remains a great product, Apple’s become more about an entire ecosystem than a specific product or service, making it so valuable.
“In our opinion the Street has severely underestimated the massive installed base upgrade opportunity around iPhone 14 and now a mini super cycle iPhone 15 ahead with roughly 25% of Apple’s golden customer base not upgrading their iPhones in over 4 years,” Ives wrote about Apple’s big advantage.
That golden customer base convinced Warren Buffett to invest nearly 47% of Berkshire Hathaway’s (US:BRK.B) $377 billion equity portfolio in AAPL stock. The holding company owns 915.6 million shares of Apple stock or 5.8% of the company. Berkshire is the third-largest shareholder in Apple, behind only Vanguard and BlackRock (US:BLK).
In early May, at Berkshire’s annual shareholder meeting in Omaha, Buffett laid out why his company has such a prominent position in the iPhone maker. According to the so-called “Oracle”, the most important thing is that Apple is a better business than any of its own.
“It just happens to be a better business than any we own,” Buffett said. “Our railroad is a very good business. It's not remotely as good as Apple's business.”
Buffett also pointed out that due to Apple share repurchases, Berkshire’s ownership has increased by 40 basis points since the end of 2018. That’s without Berkshire having to spend a nickel.
Share repurchases are often made when there isn’t a better investment for a company’s excess cash. Buffett would agree that Apple buying Apple stock is an excellent allocation of its capital.
Apple introduced the Apple Vision Pro in early June. The virtual reality headset could be the next big product since the launch of its AirPods in December 2016. Due to supply chain issues, it expects to sell 400,000 units in 2024, down from the original goal of one million.
However many it sells, Apple’s growth might be higher than analyst expectations over the next 24 to 36 months.
The Diversification of XIU
Buying AAPL stock gets you a tiny piece of one of the world’s greatest companies. There’s no disputing this. However, the company risk attached to owning AAPL and nothing else makes the iShares S&P/TSX 60 Index ETF (CA:XIU) -- the exchange-traded fund tracking the gauge’s performance -- a far less risky investment to make, all things being equal.
After all, in the top 10 holdings, you get four of Canada’s six largest banks, two railways, two energy producers, and two other large Canadian companies. The diversification comes in handy during downturns in the economy and markets.
An argument can be made that there should be an S&P/TSX 10 Index, which would hold an equal-weighted amount of the 60’s top 10 holdings. Those currently account for 38% of the index's total market cap. They’re up an average of 8.0% in 2023, more than double the XIU.
And, while the XIU's diversification is nice, a bet on Canadian equities can sometimes act as an anchor on performance. Now is one of those times. With bank and energy stocks stuck in neutral, the XIU is likely dead money for the remainder of 2023.
A better solution would be to take some of XIU weighting and allocate it to a growth ETF with a large AAPL holding, such as the Invesco NASDAQ 100 Index ETF - CAD Hedged (CA:QQC.F). It is a hedged version of the QQC, which invests 100% of its net assets in the U.S.-listed Invesco NASDAQ 100 ETF (US:QQQM). Apple is the second-largest of the 100 holdings, with a 12.45% weight.
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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That golden customer base convinced Warren Buffett to invest nearly 47% of Berkshire Hathaway’s (US:BRK.B) $377 billion equity portfolio in AAPL stock. As Americans celebrated all that makes their country great yesterday, I wonder how many included Apple (US:AAPL) on their list? True, AAPL stock has been at these lofty levels before, but closing and holding above $3 trillion?
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A better solution would be to take some of XIU weighting and allocate it to a growth ETF with a large AAPL holding, such as the Invesco NASDAQ 100 Index ETF - CAD Hedged (CA:QQC.F). As Americans celebrated all that makes their country great yesterday, I wonder how many included Apple (US:AAPL) on their list? True, AAPL stock has been at these lofty levels before, but closing and holding above $3 trillion?
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As Americans celebrated all that makes their country great yesterday, I wonder how many included Apple (US:AAPL) on their list? True, AAPL stock has been at these lofty levels before, but closing and holding above $3 trillion? AAPL stock is up nearly 54% year-to-date.
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The Diversification of XIU Buying AAPL stock gets you a tiny piece of one of the world’s greatest companies. As Americans celebrated all that makes their country great yesterday, I wonder how many included Apple (US:AAPL) on their list? True, AAPL stock has been at these lofty levels before, but closing and holding above $3 trillion?
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15025.0
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2023-07-05 00:00:00 UTC
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COLUMN-Broadening horizons - deceptive breadth of equity rally :Mike Dolan
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AAPL
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https://www.nasdaq.com/articles/column-broadening-horizons-deceptive-breadth-of-equity-rally-%3Amike-dolan
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nan
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nan
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By Mike Dolan
LONDON, July 5 (Reuters) - Dismissal of this year's much-scorned equity market rally as the frothy preserve of a handful of AI-fuelled stocks may be both misleading and also one of its strengths.
Despite a 16% rise in the most-tracked S&P500 .SPX index of leading stocks and the best first half for the tech-heavy Nasdaq .IXIC in 40 years, a recession-wary, bond-loaded investment world has repeatedly batted away 2023's stock market rebound as too narrow, top-heavy and unsustainable.
The central charge is that an equal-weight version of the S&P500 - a proxy for the average stock that assigns equal weight to each one regardless of company size - has only gained about 6%. Or, put another way, if you remove the top 10 stocks, the other 490 would only have gained 4%.
And an eye-popping 75% surge in the high-octane 10-stock FANG+TM index .NYFANG - mega cap U.S. digital and tech stocks including Apple, Microsoft, Nvidia and Tesla - underlines that.
Yet this is not some obscure corner of the equity universe. These are of the biggest stocks on the planet - with Apple the first company to ever clock a $3 trillion market cap last week.
They sit in most mixed portfolios and variously wend their way into tech, growth, quality, defensive and even sustainability-themed investment buckets. In short, they're hard to avoid unless you dodge either U.S.-listed companies or equity markets altogether.
And the estimated $7.1 trillion of indexed assets directly tracking the most-benchmarked index in the world might not care hugely how that 16% gain arrived.
Although gains for the small-cap Russell 2000 .RUT have been more modest at 7.7%, exposure to the widest measure of the publicly-listed U.S. stock universe - the Wilshere 5000 .FTW5000 - would also have bagged you a return of 16%.
But even if you assume the relative narrowness of the U.S. stock rally questions its sustainabilty, is flattered by ChatGPT-type hype or even somehow presages a quick reversal - the global view paints a different story.
Societe Generale's Andrew Lapthorne points out that not only has the MSCI all-country index .MIWD00000PUS jumped 13% since January, but equal-weight MSCI Europe, Japan and U.S. indices have seen the best start to the year since 1998.
"While the U.S. obsesses about performance being concentrated in just a few stocks, the overall rally is actually quite broad," he wrote, adding that the AI-spin was not the only game in town and combined with numerous other investment themes.
NARROW MINDED?
While the AI theme seems to have electrified growth stocks in the United States, it is cheap, beaten 'value stocks' in Europe and Japan that have driven outsize performance - with defence, 'geo-economics' and even currency playing differing roles.
Japan's Nikkei .N225 has hit its highest in 33 years after its best start to the year since 1999, with gains of almost 30%. Germany's DAX .GDAX has added 15% and hit a record high in June. Italy's financials-heavy FTSE MIB has climbed almost 20% to its highest in 15 years. .FTMIB
And while many put down U.S. excitement around artificial intelligence to hype or a mini bubble, there are others who think the leap in so-called generative AI will start to fan out beyond the leading lights and chip infrastructure stocks now benefitting most and infuse other sectors.
Consultants McKinsey reckon generative AI will have a significant impact in all sectors, with banking, high tech and life sciences to the fore.
Across the banking industry, it estimated the technology could deliver value equal to an additional $200-$340 billion annually if the use cases were fully implemented. In retail and consumer packaged goods, it saw a potential impact as high as $400-$660 billion a year.
And yet despite all the first quarter heat and optimism, global investors remain hugely biased towards bonds and underweight equities.
And this persistent skew in positioning may be one of the best arguments for broadening the equity advance over the remainder of the year - assuming some other shock or an unexpected economic nosedive doesn't in fact materialise.
As Bank of America's survey of global fund managers showed in June, investors were their most overweight in bonds in eight years, held a net underweight position in world equities that's more than two standard deviations below historical averages, and see Big Tech stocks as the most crowded trade.
New shocks aside, there appears to be plenty of scope for further rebalancing just to get back to more normal holdings.
The big challenge for many savers and investors will be whether to forgo pumped-up cash returns of circa 5% - which have more than doubled over the past year.
But as Schroders strategist Duncan Lamont points out, that only makes sense for investors with relatively short horizons.
Over the past 96 years, Lamont showed that returns on U.S. large cap stocks have beaten inflation more often than cash over any time horizons from one to 20 years. For every 20-year timeframe, equities delivered inflation-beating returns - but cash only managed to do that two thirds of the time.
"While stock market investments may be risky in the short run, when viewed against inflation they have offered far more certainty in the long run," he told clients.
The opinions expressed here are those of the author, a columnist for Reuters
Narrow minded? https://tmsnrt.rs/3NCwpdU
Broad Shoulders? https://tmsnrt.rs/3Q05vj5
Weight of the World? https://tmsnrt.rs/436V3ZH
Megacap stocks as a percentage of S&P 500 market cap https://tmsnrt.rs/43ZmBBI
McKinsey chart on AI impact on sectors https://tmsnrt.rs/3rfft5G
Schroders chart on 100 years of stocks vs inflation https://tmsnrt.rs/46wTCH1
S&P 500 valuation https://tmsnrt.rs/3PuuDxZ
(by Mike Dolan, Twitter: @reutersMikeD Editing by Mark Potter)
((mike.dolan@thomsonreuters.com; +44 207 542 8488; Reuters Messaging: mike.dolan.reuters.com@thomsonreuters.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 Mike Dolan LONDON, July 5 (Reuters) - Dismissal of this year's much-scorned equity market rally as the frothy preserve of a handful of AI-fuelled stocks may be both misleading and also one of its strengths. .FTMIB And while many put down U.S. excitement around artificial intelligence to hype or a mini bubble, there are others who think the leap in so-called generative AI will start to fan out beyond the leading lights and chip infrastructure stocks now benefitting most and infuse other sectors. As Bank of America's survey of global fund managers showed in June, investors were their most overweight in bonds in eight years, held a net underweight position in world equities that's more than two standard deviations below historical averages, and see Big Tech stocks as the most crowded trade.
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Societe Generale's Andrew Lapthorne points out that not only has the MSCI all-country index .MIWD00000PUS jumped 13% since January, but equal-weight MSCI Europe, Japan and U.S. indices have seen the best start to the year since 1998. Over the past 96 years, Lamont showed that returns on U.S. large cap stocks have beaten inflation more often than cash over any time horizons from one to 20 years. https://tmsnrt.rs/436V3ZH Megacap stocks as a percentage of S&P 500 market cap https://tmsnrt.rs/43ZmBBI McKinsey chart on AI impact on sectors https://tmsnrt.rs/3rfft5G Schroders chart on 100 years of stocks vs inflation https://tmsnrt.rs/46wTCH1 S&P 500 valuation https://tmsnrt.rs/3PuuDxZ (by Mike Dolan, Twitter: @reutersMikeD Editing by Mark Potter) ((mike.dolan@thomsonreuters.com; +44 207 542 8488; Reuters Messaging: mike.dolan.reuters.com@thomsonreuters.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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Despite a 16% rise in the most-tracked S&P500 .SPX index of leading stocks and the best first half for the tech-heavy Nasdaq .IXIC in 40 years, a recession-wary, bond-loaded investment world has repeatedly batted away 2023's stock market rebound as too narrow, top-heavy and unsustainable. As Bank of America's survey of global fund managers showed in June, investors were their most overweight in bonds in eight years, held a net underweight position in world equities that's more than two standard deviations below historical averages, and see Big Tech stocks as the most crowded trade. https://tmsnrt.rs/436V3ZH Megacap stocks as a percentage of S&P 500 market cap https://tmsnrt.rs/43ZmBBI McKinsey chart on AI impact on sectors https://tmsnrt.rs/3rfft5G Schroders chart on 100 years of stocks vs inflation https://tmsnrt.rs/46wTCH1 S&P 500 valuation https://tmsnrt.rs/3PuuDxZ (by Mike Dolan, Twitter: @reutersMikeD Editing by Mark Potter) ((mike.dolan@thomsonreuters.com; +44 207 542 8488; Reuters Messaging: mike.dolan.reuters.com@thomsonreuters.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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Japan's Nikkei .N225 has hit its highest in 33 years after its best start to the year since 1999, with gains of almost 30%. https://tmsnrt.rs/3Q05vj5 Weight of the World? https://tmsnrt.rs/436V3ZH Megacap stocks as a percentage of S&P 500 market cap https://tmsnrt.rs/43ZmBBI McKinsey chart on AI impact on sectors https://tmsnrt.rs/3rfft5G Schroders chart on 100 years of stocks vs inflation https://tmsnrt.rs/46wTCH1 S&P 500 valuation https://tmsnrt.rs/3PuuDxZ (by Mike Dolan, Twitter: @reutersMikeD Editing by Mark Potter) ((mike.dolan@thomsonreuters.com; +44 207 542 8488; Reuters Messaging: mike.dolan.reuters.com@thomsonreuters.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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15026.0
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2023-07-05 00:00:00 UTC
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Goldman Sachs Reportedly Mulling Apple Card Move To Amex
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AAPL
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https://www.nasdaq.com/articles/goldman-sachs-reportedly-mulling-apple-card-move-to-amex
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The Goldman Sachs Group (NYSE: GS) is reportedly in talks with American Express Co. (NYSE: AXP) regarding its Apple Inc. (NASDAQ: AAPL) credit card and other consumer-focused products connected with Apple.
Apple would have to give its approval to a transfer of the business to American Express. Goldman Sachs currently uses MasterCard Inc. (NYSE: MA) to issue Apple plastic. A change to American Express could potentially result in fewer merchants accepting the card, as American Express’ reach is less than MasterCard’s, although it’s growing.
The company with something to lose appears to be Goldman Sachs. The company’s consumer-facing Marcus division, which handles the Apple card duties, would feel the fallout.
In the first quarter of 2023, Goldman Sachs’ net revenue included a loss of approximately $470
million related to a partial sale of the Marcus loans portfolio and the transfer of the remainder of the portfolio to “held for sale.” That’s a designation for the company’s assets that it intends to sell. The loan portfolio sale proceeds were largely offset by a related reserve reduction of approximately $440 million in provision for credit losses.
Exploring Strategic Alternatives
In the first-quarter conference call, Goldman CEO David Solomon, whose moves surrounding the consumer division have been questioned by analysts, said the bank is exploring “strategic alternatives within our consumer platform businesses.”
However, he also said the bank was committed to growing its relationship with Apple, which may no longer be the case.
Goldman shares ended the June 30 session 0.17% lower, as the broad market and financial sector were both higher. Shares rebounded on July 3 along with the market in light pre-holiday turnover.
American Express shares traded higher following the report. American Express has been the better performer of the two financials, with a one-month return of 9.86%, versus Goldman Sachs’ return of -0.63%.
Although the story broke in the financial press, none of the companies have officially confirmed talks. Unnamed sources told reporters that although talks are taking place, it may be months before a deal, if any, takes shape.
Launched Consumer Division In 2016
Goldman Sachs, known primarily as an investment bank and trading firm, has been a Wall Street mainstay for decades. In 2016, the company made a play for consumer-facing business by launching its Marcus high-yield savings accounts.
In 2019, it launched its credit card business via the Apple deal, joining the ranks of other banks that issue cards for a specific retailer. The partnership was announced at one of the high-profile Apple events at which the company typically communicates about new products.
Earlier this year, Goldman and Apple rolled out a high-yield savings account with a 4.15% annual yield. A few weeks later, there were media reports that some account owners were having trouble withdrawing funds.
The Apple Card was made available in August 2019, with one carrot being the ability to apply and learn the amount of a credit line without going through the rigamarole of a credit check, which can ding an applicant’s credit score.
Apple's Cook: Thrilled By Positive Reception
In Apple’s fourth-quarterearnings conference call in October 2019, Apple CEO Tim Cook spoke in glowing terms about the card launch, saying, “We've been thrilled by the positive reception we've seen,” adding that users could apply for the card in minutes through the wallet app on iPhone, and begin using it right away if approved.
“They've told us they love Apple Card's simplicity, privacy, security and transparency, which has helped them make healthier financial choices,” Cook said. He noted that the card had no fees and several apps and retailers were participating ina 3% cash-back program.
“We believe this has been the most successful launch of a credit card in the United States ever,” Cook said. He added that card users had access to 24-month zero-percent interest on iPhone purchases. That program was rolled out in December 2019.
Goldman’s initiatives in the consumer space also include its March 2022 purchase of installment lender GreenSky for approximately $2.24 billion. GreenSky, whose focus was home-improvement financing, was acquired by Goldman’s Marcus consumer-facing business unit.
Aimed To Become Leading Consumer Banking Platform
Shortly after the deal closed, Goldman Sachs’ Swati Bhatia, head of consumer proprietary business at Marcus, said in an interview that the company’s goal was to “become the digital consumer banking platform of the future for tens of millions of customers.”
However, those goals have been unraveling. GreenSky didn’t last long as part of the Goldman Sachs portfolio; GreenSky is now on the selling block, with analysts saying Goldman will take a significant write-down from what it paid just two years ago.
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 Goldman Sachs Group (NYSE: GS) is reportedly in talks with American Express Co. (NYSE: AXP) regarding its Apple Inc. (NASDAQ: AAPL) credit card and other consumer-focused products connected with Apple. The loan portfolio sale proceeds were largely offset by a related reserve reduction of approximately $440 million in provision for credit losses. Launched Consumer Division In 2016 Goldman Sachs, known primarily as an investment bank and trading firm, has been a Wall Street mainstay for decades.
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The Goldman Sachs Group (NYSE: GS) is reportedly in talks with American Express Co. (NYSE: AXP) regarding its Apple Inc. (NASDAQ: AAPL) credit card and other consumer-focused products connected with Apple. In the first quarter of 2023, Goldman Sachs’ net revenue included a loss of approximately $470 million related to a partial sale of the Marcus loans portfolio and the transfer of the remainder of the portfolio to “held for sale.” That’s a designation for the company’s assets that it intends to sell. Apple's Cook: Thrilled By Positive Reception In Apple’s fourth-quarterearnings conference call in October 2019, Apple CEO Tim Cook spoke in glowing terms about the card launch, saying, “We've been thrilled by the positive reception we've seen,” adding that users could apply for the card in minutes through the wallet app on iPhone, and begin using it right away if approved.
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The Goldman Sachs Group (NYSE: GS) is reportedly in talks with American Express Co. (NYSE: AXP) regarding its Apple Inc. (NASDAQ: AAPL) credit card and other consumer-focused products connected with Apple. Apple's Cook: Thrilled By Positive Reception In Apple’s fourth-quarterearnings conference call in October 2019, Apple CEO Tim Cook spoke in glowing terms about the card launch, saying, “We've been thrilled by the positive reception we've seen,” adding that users could apply for the card in minutes through the wallet app on iPhone, and begin using it right away if approved. Aimed To Become Leading Consumer Banking Platform Shortly after the deal closed, Goldman Sachs’ Swati Bhatia, head of consumer proprietary business at Marcus, said in an interview that the company’s goal was to “become the digital consumer banking platform of the future for tens of millions of customers.” However, those goals have been unraveling.
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The Goldman Sachs Group (NYSE: GS) is reportedly in talks with American Express Co. (NYSE: AXP) regarding its Apple Inc. (NASDAQ: AAPL) credit card and other consumer-focused products connected with Apple. American Express shares traded higher following the report. In 2019, it launched its credit card business via the Apple deal, joining the ranks of other banks that issue cards for a specific retailer.
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2023-07-05 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple
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For Immediate Release
Chicago, IL – July 5, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc.'s AAPL.
Here are highlights from Monday’s Analyst Blog:
Apple Hits $3T in Market Cap: Can It Reach $4T by 2024?
Apple Inc.'s market valuation surpassed $3 trillion on Jun 30, making it the only publicly traded company to accomplish this feat twice. The stock has been on a terrific run this year, having gained about 49%. Though the stock may witness some rough trading in the near term due to rising rate worries, its long-term prospects look bullish.
According to Fairlead Strategies, Apple's latest breakout confirms a likely upside in the coming years, as quoted on Business Insider. Let's find out the factors that can lead Apple to a market valuation of $4 trillion by 2024.
Price Objective of $254: A 31% Upside Potential
Based on the breakout and analysis, Fairlead Strategies sets a price objective of $254 per share for Apple. This represents a significant 31% increase from the current stock price. Achieving this target will push Apple's market valuation to approximately $4 trillion, considering the current number of outstanding shares.
Technical Analysis Points to Uptrend Resumption
Katie Stockton, the founder of Fairlead Strategies, detects the resumption of the uptrend that "preceded the 2021-2022 trading range." This suggests continued positive momentum for Apple's stock in the short term. The absence of counter-trend signals further supports the rally.
Can Apple Touch $254 by 2024-End?
Per Stockton, the technical price objective of $254 per share can be reached by the end of 2024. This timeframe allows for gradual upward movement and aligns with the analysis of the stock's historical performance.
Apple's AR/VR Market Entry
Apple's success has not been fueled primarily by artificial intelligence (AI), unlike some of its peers. Instead, AAPL's strength lies in its proficient supply-chain management. The company's recent announcement of the Apple Vision headset, its first product in the augmented reality/virtual reality (AR/VR) market, produced excitement among users and investors. Priced at $3,499, the headset set to be released early next year, is contributing to the positive sentiment surrounding the Apple stock.
Apple: A Safe Haven Amid Fed & Inflation Worries?
Apple has been an unwavering investment option, even during uncertain economic times. Angelo Zino, CFRA vice president and technology equity analyst, highlights Apple as a safe haven for investors, as quoted on Yahoo.
The company's ability to circumnavigate various economic conditions and deliver consistent returns positions it as a long-term investment rather than a short-term trade. Apple usually targets high-end customers, which helps the company navigate economic slowdowns. For example, the Apple Vision Pro headset targets a premium market segment, safeguarding it from inflation and recession worries.
Will Back-to-School Season Create Another Milestone for Apple?
While Mac and iPad revenues in the last-reporting quarter were lower than the previous year, iPhone sales experienced a significant year-over-year increase. Also, the introduction of the 15-inch MacBook Air variant and the back-to-school shopping season can boost Mac sales.
Opportunities in the India Market
Apple's entry into the India market signifies its determination to expand its presence in the world's most crowded nation. The company plans to shift some of its manufacturing operations to India, diversifying its production base and reducing its dependence on China. This move can mitigate geopolitical challenges and strengthen AAPL's position.
Upbeat Zacks Indicators
The Zacks Consensus Estimate for Apple's earnings for the June-end quarter is pegged at $1.18 per share. The Most Accurate Estimate is pinned at $1.22 per share, leading to an Earnings ESP of +3.39%. This is a positive sign for the stock. The stock has a Value score of B.
Any Wall of Worry?
Though the success of the Vision Pro headset can result in growth opportunities, replicating the same level of success as the iPhone will be difficult. The brokerage firm UBS cautioned investors about slowing iPhone sales, as quoted on MarketWatch. Citing data from the market research firm Counterpoint, UBS' analyst Vogt reported that May's sell-through was 14.5 million units, the lowest since August.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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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Stocks recently featured in the blog include: Apple Inc.'s AAPL. Instead, AAPL's strength lies in its proficient supply-chain management. This move can mitigate geopolitical challenges and strengthen AAPL's position.
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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. Stocks recently featured in the blog include: Apple Inc.'s AAPL. Instead, AAPL's strength lies in its proficient supply-chain management.
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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. Stocks recently featured in the blog include: Apple Inc.'s AAPL. Instead, AAPL's strength lies in its proficient supply-chain management.
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Stocks recently featured in the blog include: Apple Inc.'s AAPL. Instead, AAPL's strength lies in its proficient supply-chain management. This move can mitigate geopolitical challenges and strengthen AAPL's position.
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15028.0
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2023-07-05 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Verizon Communications, Amgen, Charles Schwab and The Cigna Group
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-verizon-communications-amgen-charles-schwab-and
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For Immediate Release
Chicago, IL – July 5, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Verizon Communications Inc. VZ, Amgen Inc. AMGN, The Charles Schwab Corp. SCHW and The Cigna Group CI.
Here are highlights from Monday’s Analyst Blog:
Top Analyst Reports for Apple, Verizon and Amgen
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Verizon Communications Inc. and Amgen Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Apple shares have been standout performers this year, outperforming the Zacks Tech sector ((+47.9% vs. +37.3%) and the S&P 500 index (+47.9% vs. +16.9). The company is benefiting from steady demand for iPhone 14 and 14 Plus as well as expanding footprint in emerging markets. Growing services subscriber base and improving customer engagement are tailwinds for the services business.
Apple is expanding service offerings with the new features and enhancements in its upcoming iOS 17, iPadOS 17, macOS Sonoma, watchOS 10, and tvOS 17. Expanding content on Apple TV+ bodes well for Apple. Growing footprint in the enterprise market is encouraging.
However, services' revenue growth in the fiscal third quarter is expected to be similar to the fiscal second quarter. Apple expects services to be negatively impacted by challenging macroeconomic conditions, as well as continued weakness in digital advertising and mobile gaming.
(You can read the full research report on Apple here >>>)
Shares of Verizon have declined -6.6% over the past six months against the Zacks Wireless National industry's decline of -7.2%. The company has reiterated its soft guidance for 2023 due to a challenging macroeconomic environment. Continued retail prepaid and postpaid net losses are hindering the top line of the company. Stiff competition from other major players and saturation in the U.S. wireless market is hurting profits.
Heavy spending on promotional activities to attract customers is also weighing on margins. Nevertheless, Verizon is witnessing significant 5G adoption and fixed wireless broadband momentum. It is offering various mix and match pricing in both wireless and home broadband plans that has led to solid customer additions.
Strong demand for Fios and fixed wireless products are tailwinds. Verizon's mmWave footprint delivers game-changing experience for the densest parts of the network and offers reliable signal waves with enhanced efficiency and less interference.
(You can read the full research report on Verizon here >>>)
Amgen shares have declined -6.5% over the past year against the Zacks Medical - Biomedical and Genetics industry's decline of -7.1%. While the company's key drugs like Prolia, Repatha and Evenity are driving sales, increasing competition for its legacy products is hurting the same.
Amgen is rapidly advancing its robust oncology and immunology pipeline. Several data readouts are expected in the second half of 2023. Amgen boasts a strong biosimilars portfolio with potential new products expected to drive long-term growth.
However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen's products, including some biosimilars. Increasing biosimilar competition for some legacy products and weakness in key brands like Otezla and Lumakras create potential revenue headwinds.
(You can read the full research report on Amgen here >>>)
Other noteworthy reports we are featuring today include The Charles Schwab Corp. and The Cigna Group.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
Cigna Group (CI) : 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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Stocks recently featured in the blog include: Apple Inc. AAPL, Verizon Communications Inc. VZ, Amgen Inc. AMGN, The Charles Schwab Corp. SCHW and The Cigna Group CI. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report To read this article on Zacks.com click here. Verizon's mmWave footprint delivers game-changing experience for the densest parts of the network and offers reliable signal waves with enhanced efficiency and less interference.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Verizon Communications Inc. VZ, Amgen Inc. AMGN, The Charles Schwab Corp. SCHW and The Cigna Group CI. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Verizon Communications Inc. and Amgen Inc.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, Verizon Communications Inc. VZ, Amgen Inc. AMGN, The Charles Schwab Corp. SCHW and The Cigna Group CI. Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Apple, Verizon and Amgen The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Verizon Communications Inc. VZ, Amgen Inc. AMGN, The Charles Schwab Corp. SCHW and The Cigna Group CI. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple shares have been standout performers this year, outperforming the Zacks Tech sector ((+47.9% vs. +37.3%) and the S&P 500 index (+47.9% vs. +16.9).
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2023-07-05 00:00:00 UTC
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AAPL Factor-Based Stock Analysis
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AAPL
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https://www.nasdaq.com/articles/aapl-factor-based-stock-analysis-2
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click 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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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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15030.0
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2023-07-05 00:00:00 UTC
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Amazon Is Having Its Best Run In Years, But Should You Chase It?
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AAPL
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https://www.nasdaq.com/articles/amazon-is-having-its-best-run-in-years-but-should-you-chase-it
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nan
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nan
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With fellow tech heavyweights like Apple Inc (NASDAQ: AAPL), Meta Inc (NASDAQ: META), and Alphabet Inc (NASDAQ: GOOGL) all seeing strong rallies this year, it should be no surprise that Amazon Inc (NASDAQ: AMZN) too has been performing well. Shares of the e-commerce and cloud computing giant are up more than 60% since the first week of January and are well on their way to canceling last year's slide.
It is, in fact, one of Amazon's best starts to a year in the past decade. And typically, investors want to be buying into a rally like this where there's been clear momentum for weeks and months. However, as we've seen and written about with Google and Tesla Inc (NASDAQ: TSLA), eyebrows are being raised about the longevity of Amazon's current run. Let's jump into some of the reasons for and against chasing it.
Frothy Valuation
Taking the bearish view first, there's the question of Amazon's valuation. As considered through the lens of their price-to-earnings (PE) ratio, currently 310, they're more expensive now than at any point since 2015. For context, Apple has a PE ratio of 32, while Meta's is 36.
The primary reason for Amazon's PE ratio jumping from so high in tandem with its share price is due to its falling earnings versus Apple and Meta, which have seen their EPS rise along with shares. A high PE ratio might be acceptable when money is cheap, as investors can see a path for a company to scale and grow earnings to bring down its PE ratio.
But when rates have been rising and costs with them, investors have to be skeptical of any stock with an inflated PE ratio as it's really asking them to take a leap of faith. Looking back at some of the more recent earnings reports, it's clear Amazon is on its lowest run of EPS prints since before the pandemic; hardly the kind of fundamental statistic you want to hear if you're thinking about getting involved.
Expanding on the point of valuation and fundamentals, investors must also note Amazon has been issuing downward revisions for almost two years. To be fair to the management, it's not like they're not being upfront about the changing macro environment and challenging headwinds, but again it's a run of updates that's at odds with the stock's performance. In addition, where there has been growth, it's been uneven.
The company's AWS cloud computing unit has been profitable in its own right, but the e-commerce unit upon which Amazon built its reputation has struggled. It's become a regularly cited fact that the AWS unit alone has stopped earnings results from slowing down even more.
Risk-on Sentiment
This brings us to the main questions, what's been fueling this rally, and is it worth buying into? You have to be thinking that much of this year's gains are correlated with those from Apple and the wider equity market. The benchmark S&P 500 index, for example, is up nearly 20% since January, indicative of a growing risk-on sentiment that has filtered out to help individual beaten-down stocks.
And having had to watch their shares drop by nearly 60% last year, Amazon is firmly in that camp. In addition to the rebound bounce angle, there's also the fact that the Fed's cycle of raising rates is finally starting to have an effect on inflation. Higher inflation prints are the enemy of e-commerce companies as they often foreshadow reduced consumer spending, so any signs of inflation starting to cool is good news for Amazon's e-commerce revenue.
But all things considered, we see the positive upside from both of these tailwinds as having been already reflected in the share price, with little room for further upside without further updates. To that end, Amazon's MACD signal has just flashed a bearish crossover, suggesting that momentum has started to swing toward the bears, so don't be surprised if there's some profit-taking at these levels. We like Amazon over the long term, but it's a stretch to recommend the rally being chased at this point.
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 fellow tech heavyweights like Apple Inc (NASDAQ: AAPL), Meta Inc (NASDAQ: META), and Alphabet Inc (NASDAQ: GOOGL) all seeing strong rallies this year, it should be no surprise that Amazon Inc (NASDAQ: AMZN) too has been performing well. Looking back at some of the more recent earnings reports, it's clear Amazon is on its lowest run of EPS prints since before the pandemic; hardly the kind of fundamental statistic you want to hear if you're thinking about getting involved. To be fair to the management, it's not like they're not being upfront about the changing macro environment and challenging headwinds, but again it's a run of updates that's at odds with the stock's performance.
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With fellow tech heavyweights like Apple Inc (NASDAQ: AAPL), Meta Inc (NASDAQ: META), and Alphabet Inc (NASDAQ: GOOGL) all seeing strong rallies this year, it should be no surprise that Amazon Inc (NASDAQ: AMZN) too has been performing well. The primary reason for Amazon's PE ratio jumping from so high in tandem with its share price is due to its falling earnings versus Apple and Meta, which have seen their EPS rise along with shares. The company's AWS cloud computing unit has been profitable in its own right, but the e-commerce unit upon which Amazon built its reputation has struggled.
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With fellow tech heavyweights like Apple Inc (NASDAQ: AAPL), Meta Inc (NASDAQ: META), and Alphabet Inc (NASDAQ: GOOGL) all seeing strong rallies this year, it should be no surprise that Amazon Inc (NASDAQ: AMZN) too has been performing well. The primary reason for Amazon's PE ratio jumping from so high in tandem with its share price is due to its falling earnings versus Apple and Meta, which have seen their EPS rise along with shares. A high PE ratio might be acceptable when money is cheap, as investors can see a path for a company to scale and grow earnings to bring down its PE ratio.
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With fellow tech heavyweights like Apple Inc (NASDAQ: AAPL), Meta Inc (NASDAQ: META), and Alphabet Inc (NASDAQ: GOOGL) all seeing strong rallies this year, it should be no surprise that Amazon Inc (NASDAQ: AMZN) too has been performing well. For context, Apple has a PE ratio of 32, while Meta's is 36. The primary reason for Amazon's PE ratio jumping from so high in tandem with its share price is due to its falling earnings versus Apple and Meta, which have seen their EPS rise along with shares.
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15031.0
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2023-07-04 00:00:00 UTC
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Amazon, Google, Apple, Meta, Microsoft say they meet EU gatekeeper status
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AAPL
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https://www.nasdaq.com/articles/amazon-google-apple-meta-microsoft-say-they-meet-eu-gatekeeper-status
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nan
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nan
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By Foo Yun Chee
BRUSSELS, July 4 (Reuters) - Alphabet's GOOGL.O Google, Amazon AMZN.O, Apple AAPL.O, Meta Platforms META.O and Microsoft MSFT.O have notified the European Commission that they qualify as gatekeepers under new EU tech rules, EU industry chief Thierry Breton said on Tuesday.
Under the Digital Markets Act (DMA) which came into force last November, companies with more than 45 million monthly active users and a 75 billion euros market capitalisation are considered gatekeepers providing a core platform service.
Samsung and TikTok owner ByteDance also said they meet the EU thresholds, Breton said.
"Europe is completely reorganising its digital space to both better protect EU citizens and enhance innovation for EU startups and companies," Breton said in a statement.
The Commission will confirm the gatekeeper designation by Sept. 6 after checking the data provided by the companies. They will then have six months to comply with the DMA rules.
Booking.com BKNG.O said it expects to meet the gatekeeper threshold by the end of the year and will then notify the EU executive.
Companies labelled as gatekeepers will be required to make their messaging apps interoperate with rivals and let users to decide which apps to pre-install on their devices.
They will not be allowed to favour their own services over rivals' or prevent users from removing pre-installed software or apps, two rules that will hit Google and Apple hard.
Companies can be fined up to 10% of annual global turnover for DMA violations.
(Reporting by Foo Yun Chee, Editing by Louise Heavens)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.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 Foo Yun Chee BRUSSELS, July 4 (Reuters) - Alphabet's GOOGL.O Google, Amazon AMZN.O, Apple AAPL.O, Meta Platforms META.O and Microsoft MSFT.O have notified the European Commission that they qualify as gatekeepers under new EU tech rules, EU industry chief Thierry Breton said on Tuesday. Booking.com BKNG.O said it expects to meet the gatekeeper threshold by the end of the year and will then notify the EU executive. They will not be allowed to favour their own services over rivals' or prevent users from removing pre-installed software or apps, two rules that will hit Google and Apple hard.
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By Foo Yun Chee BRUSSELS, July 4 (Reuters) - Alphabet's GOOGL.O Google, Amazon AMZN.O, Apple AAPL.O, Meta Platforms META.O and Microsoft MSFT.O have notified the European Commission that they qualify as gatekeepers under new EU tech rules, EU industry chief Thierry Breton said on Tuesday. Samsung and TikTok owner ByteDance also said they meet the EU thresholds, Breton said. They will not be allowed to favour their own services over rivals' or prevent users from removing pre-installed software or apps, two rules that will hit Google and Apple hard.
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By Foo Yun Chee BRUSSELS, July 4 (Reuters) - Alphabet's GOOGL.O Google, Amazon AMZN.O, Apple AAPL.O, Meta Platforms META.O and Microsoft MSFT.O have notified the European Commission that they qualify as gatekeepers under new EU tech rules, EU industry chief Thierry Breton said on Tuesday. Under the Digital Markets Act (DMA) which came into force last November, companies with more than 45 million monthly active users and a 75 billion euros market capitalisation are considered gatekeepers providing a core platform service. Companies labelled as gatekeepers will be required to make their messaging apps interoperate with rivals and let users to decide which apps to pre-install on their devices.
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By Foo Yun Chee BRUSSELS, July 4 (Reuters) - Alphabet's GOOGL.O Google, Amazon AMZN.O, Apple AAPL.O, Meta Platforms META.O and Microsoft MSFT.O have notified the European Commission that they qualify as gatekeepers under new EU tech rules, EU industry chief Thierry Breton said on Tuesday. Booking.com BKNG.O said it expects to meet the gatekeeper threshold by the end of the year and will then notify the EU executive. They will not be allowed to favour their own services over rivals' or prevent users from removing pre-installed software or apps, two rules that will hit Google and Apple hard.
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15032.0
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2023-07-04 00:00:00 UTC
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Apple loses London appeal in 4G patent dispute with Optis
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AAPL
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https://www.nasdaq.com/articles/apple-loses-london-appeal-in-4g-patent-dispute-with-optis
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nan
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nan
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LONDON, July 4 (Reuters) - Apple Inc AAPL.O infringed two telecommunications patents used in devices including iPhones and iPads, London's Court of Appeal ruled on Tuesday, dismissing the tech giant's appeal in a long-running dispute with a U.S. patent holder.
Texas-based Optis Cellular Technology LLC sued Apple in 2019 over its use of patents which Optis says are essential to certain technological standards, such as 4G.
London's High Court ruled last year that two of Optis' 4G patents were so-called standard essential patents and that Apple had infringed them.
Apple appealed against that decision in May, arguing that the two patents in issue were not essential to 4G standards and that it had not infringed the patents.
But its challenge was rejected by the Court of Appeal, with Judge Colin Birss saying in a written ruling that the High Court was "right to reject (Apple's) argument for non-infringement" and on the issue of the patents being essential.
Apple and Optis did not immediately respond to a request for comment.
Tuesday's ruling is the latest decision in the legal battle between Apple and Optis, which began in 2019 and has prompted six separate trials and several appellate hearings in Britain alone.
The Court of Appeal last month upheld an appeal by Optis against an earlier decision to revoke two other 4G-related patents, following a ruling in October that Optis is entitled to an injunction to stop Apple infringing its patents before a court has ruled on the fair, reasonable and non-discriminatory terms of use.
Apple was granted permission earlier this year to appeal against the October ruling.
(Reporting by Sam Tobin; Editing by Emelia Sithole-Matarise)
((Sam.Tobin@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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LONDON, July 4 (Reuters) - Apple Inc AAPL.O infringed two telecommunications patents used in devices including iPhones and iPads, London's Court of Appeal ruled on Tuesday, dismissing the tech giant's appeal in a long-running dispute with a U.S. patent holder. Tuesday's ruling is the latest decision in the legal battle between Apple and Optis, which began in 2019 and has prompted six separate trials and several appellate hearings in Britain alone. The Court of Appeal last month upheld an appeal by Optis against an earlier decision to revoke two other 4G-related patents, following a ruling in October that Optis is entitled to an injunction to stop Apple infringing its patents before a court has ruled on the fair, reasonable and non-discriminatory terms of use.
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LONDON, July 4 (Reuters) - Apple Inc AAPL.O infringed two telecommunications patents used in devices including iPhones and iPads, London's Court of Appeal ruled on Tuesday, dismissing the tech giant's appeal in a long-running dispute with a U.S. patent holder. London's High Court ruled last year that two of Optis' 4G patents were so-called standard essential patents and that Apple had infringed them. The Court of Appeal last month upheld an appeal by Optis against an earlier decision to revoke two other 4G-related patents, following a ruling in October that Optis is entitled to an injunction to stop Apple infringing its patents before a court has ruled on the fair, reasonable and non-discriminatory terms of use.
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LONDON, July 4 (Reuters) - Apple Inc AAPL.O infringed two telecommunications patents used in devices including iPhones and iPads, London's Court of Appeal ruled on Tuesday, dismissing the tech giant's appeal in a long-running dispute with a U.S. patent holder. London's High Court ruled last year that two of Optis' 4G patents were so-called standard essential patents and that Apple had infringed them. The Court of Appeal last month upheld an appeal by Optis against an earlier decision to revoke two other 4G-related patents, following a ruling in October that Optis is entitled to an injunction to stop Apple infringing its patents before a court has ruled on the fair, reasonable and non-discriminatory terms of use.
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LONDON, July 4 (Reuters) - Apple Inc AAPL.O infringed two telecommunications patents used in devices including iPhones and iPads, London's Court of Appeal ruled on Tuesday, dismissing the tech giant's appeal in a long-running dispute with a U.S. patent holder. London's High Court ruled last year that two of Optis' 4G patents were so-called standard essential patents and that Apple had infringed them. Apple appealed against that decision in May, arguing that the two patents in issue were not essential to 4G standards and that it had not infringed the patents.
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15033.0
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2023-07-04 00:00:00 UTC
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What Will Freedom Mean As AI Continues Its Rapid Ascent?
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AAPL
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https://www.nasdaq.com/articles/what-will-freedom-mean-as-ai-continues-its-rapid-ascent
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
On this Independence Day, given all the buzz about artificial intelligence (AI), I can’t help but wonder if the word “independence” will soon take on a whole new meaning.
What will freedom look like by 2030, even 2025?
Let’s say we do create a new generation of AI technologies that can clean homes, mow lawns, teach classes, cook food, write code, diagnose diseases…
What then?
Tens of millions of Americans will be out of work – replaced by an army of robots that don’t require a paycheck and never take a day off.
According to a new report from the Brookings Institution, 36 million Americans hold jobs that could be automated by AI over the next several years. Cooks, waiters, truck drivers, clerical office workers, and writers are among those seen as the most at-risk.
Let’s contextualize that because it is a huge number.
The working-age population in the U.S. is about 200 million people. Therefore, AI could increase the unemployment rate by 18 percentage points, on top of today’s ~4% unemployment rate.
After crunching those numbers, it becomes clear that in a world where AI rules everything, we could be sitting at 20%-plus unemployment levels.
AI Could Destroy Financial Freedom
The U.S. economy has never before seen unemployment levels that high. Since World War II, the unemployment rate has averaged 5.7%. Peak unemployment came during the depths of the COVID-19 pandemic. That was below 15%, and it lasted just one month.
With AI, we could be staring at unemployment rates far above that – and it would last for years.
The common school of thought is that those tens of millions displaced by AI will learn new skills and get new jobs. Society will adapt, as it always does.
Now, you never want to be the one who says, “this time will be different.” It seldomly is.
But this time may actually be different.
That’s because this is the first time we are bringing to market a new technology that actually learns from itself. AI isn’t a “set it and forget it” technology. It’s ever-evolving and ever-growing. It will keep getting better, and it will likely improve at a pace faster than humans can learn new skills.
By the time displaced laborers master a new skill, AI will likely have already figured out how to do it. Time to “reskill” again.
This may be the pattern for the foreseeable future, which is why AI may create an economy wherein 20% unemployment is the norm.
Hedging Against an AI-Fueled Catastrophe
That’s why I think “freedom” and “independence” may take on a whole new meaning in a few years.
Today, we take them for granted. Most of us who want a job have one. Most folks have disposable incoming. They have choice. They have freedom and independence.
But in a few years, 20% of America may not have that anymore.
At least financially speaking, one in five Americans may not be “free” at all in a few years.
It is a scary thought. And to be clear, I don’t think that is the future.
Rather, I believe that AI will enhance our lives and that society will adjust, as it always does. I’m a big “this time is not different” guy.
But I may be wrong.
And if my optimism is misplaced, it could mean catastrophe for 1 in 5 Americans.
You need to hedge against that risk – the end of financial freedom and independence.
And that’s why you need to invest in AI stocks today.
The Final Word
The best way to hedge against an AI Apocalypse – to ensure that you don’t get left behind and, instead, thrive in it – is to invest in the best AI stocks right now.
And what better way to invest in the AI Revolution than by investing in the firm that started it all?
The hype around AI began in late 2022, when OpenAI launched its revolutionary chatbot ChatGPT. Since then, OpenAI’s valuation has doubled. But because the startup isn’t publicly traded, most retail investors missed out on those gains.
But I discovered a loophole that allows you to invest in OpenAI.
Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss.
Learn how to hedge against the risk of financial catastrophe.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post What Will Freedom Mean As AI Continues Its Rapid Ascent? 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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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. Let’s say we do create a new generation of AI technologies that can clean homes, mow lawns, teach classes, cook food, write code, diagnose diseases… What then? More From InvestorPlace Buy This $5 Stock BEFORE This Apple Project Goes Live Did Elon Musk Just Trigger a New Netscape Moment?
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. InvestorPlace - Stock Market News, Stock Advice & Trading Tips On this Independence Day, given all the buzz about artificial intelligence (AI), I can’t help but wonder if the word “independence” will soon take on a whole new meaning. The common school of thought is that those tens of millions displaced by AI will learn new skills and get new jobs.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. InvestorPlace - Stock Market News, Stock Advice & Trading Tips On this Independence Day, given all the buzz about artificial intelligence (AI), I can’t help but wonder if the word “independence” will soon take on a whole new meaning. Therefore, AI could increase the unemployment rate by 18 percentage points, on top of today’s ~4% unemployment rate.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. According to a new report from the Brookings Institution, 36 million Americans hold jobs that could be automated by AI over the next several years. The common school of thought is that those tens of millions displaced by AI will learn new skills and get new jobs.
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15034.0
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2023-07-04 00:00:00 UTC
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1 Warren Buffett Stock to Buy Hand Over Fist in July
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AAPL
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https://www.nasdaq.com/articles/1-warren-buffett-stock-to-buy-hand-over-fist-in-july
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nan
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nan
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One of the most successful investors of all time, Warren Buffett, has built his fortune and reputation by following three simple rules when it comes to picking stocks for his holding company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B):
He looks for companies that have a strong brand name, a solid financial position, and a durable competitive advantage over their rivals. These companies can withstand market fluctuations and management mistakes better than others.
He invests for the long term, not the short term. He does not chase trends or fads, but focuses on the intrinsic value and growth potential of the businesses he owns.
He takes advantage of market panics and crashes to buy more shares of his favorite companies at bargain prices. He believes that "The best chance to deploy capital is when things are going down."
Which Warren Buffett stock stands out as a top buy in July? Read on to find out.
Image Source: The Motley Fool.
Berkshire: Superb financials, a wide moat, and gold-star management
If you're looking for a Warren Buffett stock to buy hand over fist in July, you might want to consider Berkshire Hathaway. Buffett's holding company sports a diversified portfolio of businesses and investments that offer both growth and value. Here are three reasons Berkshire Hathaway is a great buy in July and beyond.
First, Berkshire Hathaway has an exceptionally strong balance sheet and a top-shelf business model. As of March 31, the holding company had $130.6 billion in cash and short-term investments. This large cash position provides the company with ample liquidity to pursue value-creating opportunities for shareholders. Moreover, Berkshire Hathaway has a proven history of generating steady free cash flows, which indicates a strong and healthy business.
Second, Berkshire Hathaway has a wide moat that protects its competitive advantage and profitability. The company owns and operates some of the most dominant and durable businesses in the world, such as GEICO, BNSF Railway, Dairy Queen, and See's Candies. These businesses have loyal customers, strong brands, economies of scale, and high barriers to entry.
Berkshire Hathaway also has a sizable stake in some of the most profitable and innovative companies in the world, such as Apple, Amazon, Coca-Cola, and Bank of America. These large-cap companies have strong growth prospects, resilient earnings, and competitive moats of their own.
Third, Berkshire Hathaway has visionary leadership. Buffett, along with his top investment managers Ted Weschler and Todd Combs, have demonstrated an uncanny ability to consistently unearth high-quality businesses with depressed valuations and formidable economic moats.
Speaking to this point, Berkshire Hathaway's value-oriented approach to stock investing has yielded market-crushing returns for shareholders over the past several decades. Beating the market consistently over such a long period doesn't happen by accident. Buffett and his team are undoubtedly some of the best business pickers of all time.
BRK.A data by YCharts
Time to buy?
All told, Berkshire stands out as a top Buffett stock to buy this month. The diversified holding company has a rock-solid balance sheet, a wide moat, and a gold-star management team. These qualities should translate into solid returns for shareholders in the long run, making it an attractive choice for growth and value investors alike.
10 stocks we like better than Berkshire Hathaway
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*Stock Advisor returns as of July 3, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Bank of America, 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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Berkshire Hathaway also has a sizable stake in some of the most profitable and innovative companies in the world, such as Apple, Amazon, Coca-Cola, and Bank of America. Buffett, along with his top investment managers Ted Weschler and Todd Combs, have demonstrated an uncanny ability to consistently unearth high-quality businesses with depressed valuations and formidable economic moats. Speaking to this point, Berkshire Hathaway's value-oriented approach to stock investing has yielded market-crushing returns for shareholders over the past several decades.
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One of the most successful investors of all time, Warren Buffett, has built his fortune and reputation by following three simple rules when it comes to picking stocks for his holding company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B): He looks for companies that have a strong brand name, a solid financial position, and a durable competitive advantage over their rivals. The diversified holding company has a rock-solid balance sheet, a wide moat, and a gold-star management team. The Motley Fool has positions in and recommends Amazon.com, Apple, Bank of America, and Berkshire Hathaway.
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One of the most successful investors of all time, Warren Buffett, has built his fortune and reputation by following three simple rules when it comes to picking stocks for his holding company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B): He looks for companies that have a strong brand name, a solid financial position, and a durable competitive advantage over their rivals. Berkshire: Superb financials, a wide moat, and gold-star management If you're looking for a Warren Buffett stock to buy hand over fist in July, you might want to consider Berkshire Hathaway. 10 stocks we like better than Berkshire Hathaway When our analyst team has a stock tip, it can pay to listen.
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Berkshire: Superb financials, a wide moat, and gold-star management If you're looking for a Warren Buffett stock to buy hand over fist in July, you might want to consider Berkshire Hathaway. The diversified holding company has a rock-solid balance sheet, a wide moat, and a gold-star management team. That's right -- they think these 10 stocks are even better buys.
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15035.0
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2023-07-04 00:00:00 UTC
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3 Top Warren Buffett Dividend Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/3-top-warren-buffett-dividend-stocks-to-buy-now
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Warren Buffett's record of building wealth makes the holdings of his company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), a no-brainer place to look for investment ideas. Berkshire's portfolio is full of top consumer brands that generate consistent revenue and profits and pay out dividends to shareholders.
Keep in mind that not all the stocks Berkshire owns were picked by Buffett. Many of the smaller holdings were the handiwork of Berkshire's investing lieutenants, Ted Weschler and Todd Combs, who oversee a portion of the conglomerate's portfolio. Nonetheless, Weschler and Combs have equally impressive investing careers worth following.
That said, all of Berkshire's stocks are worthy of further inspection, and some would make great dividend investments. Apple (NASDAQ: AAPL), Kraft Heinz (NASDAQ: KHC), and Kroger (NYSE: KR) are three dividend payers that could deliver great returns from here, according to three Motley Fool contributors. Let's find out more about these three stocks.
Apple is Buffett's favorite
Jeremy Bowman (Apple): With a dividend yield of 0.5%, Apple isn't going to win any awards for yield, but this tech giant has a long track record of raising its dividend and rewarding investors (including with share buybacks).
Additionally, it has one of the widest economic moats in the business world, making it obvious why Buffett is so fond of the business. In fact, Apple now makes up roughly half of Berkshire's stock portfolio thanks to steady buying over the years and Apple's own stock appreciation.
The iPhone and Mac maker has built an unrivaled consumer tech ecosystem with an installed base of roughly 2 billion devices. Once you own one Apple product, it makes sense to buy more if you're in the market for another because they work seamlessly with one another and connect to software like iCloud and the App Store.
Apple's introduction of its new Vision Pro spatial computing headset at its Worldwide Developers Conference in June also puts it in a position to dominate the next era of computing.
While it's unclear yet if headsets like the Vision Pro and Meta Platforms' Quest will gain broad adoption, Apple seems like a good bet to be a leader in spatial computing considering its reputation for consumer hardware, integrations with devices like the iPhone, and the years of research and development that have gone into the device. Priced at $3,500, the Vision Pro is much more expensive than the Quest.
The tech titan has also been applying artificial intelligence (AI) tools like machine learning, meaning the company offers one of the best use cases for AI right now as well. Meanwhile, its market share continues to grow, further entrenching its leadership.
You can rest assured that Apple will deliver monster profits for years to come.
A high-yield food stock
John Ballard (Kraft Heinz): Buffett has a long history of favoring top consumer names, so it's no surprise that Berkshire Hathaway's portfolio is full of some of the biggest brands in the world, including Apple, Coca-Cola, and Kraft Heinz.
Kraft Heinz is more than mac and cheese and ketchup. The company also owns other top brands like Philadelphia and Lunchables. These also happen to be some of the company's strongest performers, driving an 8% year-over-year increase in organic sales in the first quarter. The business is also executing a successful international strategy, with organic sales surging 23% year over year.
It's not all good news. Kraft has struggled to maintain volume growth in the high-inflation environment, as all of its growth was driven by price increases last quarter. Still, the price boosts have been a valuable tool to keep profits up. Margins have been trending up, leading to a 13% rise in adjusted earnings per share last quarter.
Kraft Heinz offers an attractive above-average yield of 4.6% at the time of this writing, although this was only made possible by the company paying out 130% of its free cash flow in dividends over the last year. Paying out more cash than you bring in is not sustainable over the long term.
Part of the problem has been higher inventory levels, which decreased free cash flow produced by the business. Management is working to reduce inventory, so investors should expect free cash flow to recover over the next few years, and sustain the current dividend payout.
The stock is also trading at a cheap forward price-to-earnings ratio of 12, so growing earnings and free cash flow could be a catalyst for the shares.
The stock might outperform if the market decides the business is worth a higher P/E multiple, but I wouldn't buy shares with hopes of making big returns. This isn't a fast-growing business, but Kraft Heinz could be an undervalued dividend stock worth considering ahead of the next bull market.
Fresh food and digital shopping equal higher sales
Jennifer Saibil (Kroger): Investors love growth stocks and for good reason. They're often the driving force behind incredible portfolio gains. And that's what investing is all about, isn't it? Not exactly. That's because stocks with the highest opportunity for gains also typically come with the greatest risks. For most investors, the best way to benefit from growth opportunities while mitigating risk is to create a diversified portfolio with both growth and value stocks.
Then there are investors like Buffett. He's embraced a value approach to investing and tends to steer clear of growth stocks, and yet Berkshire has regularly beaten the market over many years.
One of his value plays is Kroger. Kroger is the second-largest supermarket chain in the U.S. in terms of store count behind Walmart, with over 2,700 stores in 35 states. It operates under the Kroger brand as well as several other smaller brands like Harris Teeter, Fry's, Dillons, Fred Meyer, and Ralphs.
Growth was stagnating before the pandemic. The grocery specialist took too long to get into the digital arena, but it jumped into gear at the beginning of the pandemic and sales exploded. With a new strategy in place emphasizing fresh food and omnichannel shopping, Kroger is demonstrating momentum. Its company-branded food lines, which are high quality at lower prices, have become very popular, presenting a strong growth opportunity. Comparable sales growth dropped after the early pandemic surge, but it's now back to steady increases. In the first quarter of 2023, comparable sales (without fuel) climbed 3.5% over last year, while earnings per share rose from $0.90 last year to $1.32.
Kroger pays a dividend that yields an above-average 2.2%, and it has increased its payout 287% over the past 10 years, or more than double other dividend superstars like Coca-Cola and PepsiCo.
Kroger trades at the cheap valuation of 13 times trailing-12-month earnings. Between its dividend increases and low valuation, as well as its position as an all-seasons essentials company, it's easy to see why Buffett likes this stock, and how it can shore up a diversified portfolio with value and safety.
10 stocks we like better than Apple
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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. Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Meta Platforms. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Meta Platforms, and Walmart. The Motley Fool recommends Kraft Heinz and 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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Apple (NASDAQ: AAPL), Kraft Heinz (NASDAQ: KHC), and Kroger (NYSE: KR) are three dividend payers that could deliver great returns from here, according to three Motley Fool contributors. Kraft Heinz offers an attractive above-average yield of 4.6% at the time of this writing, although this was only made possible by the company paying out 130% of its free cash flow in dividends over the last year. Fresh food and digital shopping equal higher sales Jennifer Saibil (Kroger): Investors love growth stocks and for good reason.
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Apple (NASDAQ: AAPL), Kraft Heinz (NASDAQ: KHC), and Kroger (NYSE: KR) are three dividend payers that could deliver great returns from here, according to three Motley Fool contributors. In fact, Apple now makes up roughly half of Berkshire's stock portfolio thanks to steady buying over the years and Apple's own stock appreciation. Fresh food and digital shopping equal higher sales Jennifer Saibil (Kroger): Investors love growth stocks and for good reason.
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Apple (NASDAQ: AAPL), Kraft Heinz (NASDAQ: KHC), and Kroger (NYSE: KR) are three dividend payers that could deliver great returns from here, according to three Motley Fool contributors. Apple is Buffett's favorite Jeremy Bowman (Apple): With a dividend yield of 0.5%, Apple isn't going to win any awards for yield, but this tech giant has a long track record of raising its dividend and rewarding investors (including with share buybacks). In fact, Apple now makes up roughly half of Berkshire's stock portfolio thanks to steady buying over the years and Apple's own stock appreciation.
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Apple (NASDAQ: AAPL), Kraft Heinz (NASDAQ: KHC), and Kroger (NYSE: KR) are three dividend payers that could deliver great returns from here, according to three Motley Fool contributors. For most investors, the best way to benefit from growth opportunities while mitigating risk is to create a diversified portfolio with both growth and value stocks. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Meta Platforms, and Walmart.
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15036.0
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2023-07-04 00:00:00 UTC
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Prediction: 10 Stocks That Will Have Trillion-Dollar Valuations by 2035
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AAPL
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https://www.nasdaq.com/articles/prediction%3A-10-stocks-that-will-have-trillion-dollar-valuations-by-2035
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If history demonstrates anything, it's that change is one of Wall Street's only constants. Looking back to the start of the century, only one of the 10 largest publicly traded companies by market cap is still among the top 10 by market cap today. Thanks to innovation, competitive advantages, collaborations, acquisitions, and competition, the market's largest and most influential companies are always in flux.
Since the U.S. economy naturally expands over time, seeing publicly traded companies eclipse the $1 trillion valuation mark should become more common. At the moment, there are five stocks with trillion-dollar-plus valuations. By 2035, I predict there will be at least 10 -- and neither electric-vehicle manufacturer Tesla (NASDAQ: TSLA) nor artificial intelligence (AI) chip producer Nvidia (NASDAQ: NVDA) will be among them.
Image source: Getty Images.
1. Apple: Current market cap of $3.05 trillion
Considering that it could lose two-thirds of its value and still be part of the trillion-dollar valuation club, it's a pretty good bet that tech stock Apple (NASDAQ: AAPL) isn't going anywhere.
Apple is consistently at or near the top of every list ranking brand value, and it has an incredibly loyal customer base that regularly snatches up its new products. If Apple can maintain its lead in the U.S. smartphone market, while continuing to build on its rapidly growing subscription services segment, it shouldn't have any trouble holding onto its spot as one of Wall Street's most influential businesses.
I'd be remiss if I didn't also mention that Apple has repurchased a jaw-dropping $586 billion worth of its common stock over the past 10 years.
2. Microsoft: Current market cap of $2.53 trillion
Another stock that looks like a no-brainer to maintain its existing trillion-dollar market cap is Microsoft (NASDAQ: MSFT). For those curious, Ole Softy is the aforementioned company from 2000 that's kept its spot among the 10 largest publicly traded companies by market cap.
Microsoft's secret sauce continues to be its blending of the old and the new. All eyes are on its AI ventures, as well as its fast-growing cloud infrastructure service Azure, which accounts for nearly a quarter of global cloud infrastructure service spending.
But don't forget that Microsoft is a cash cow that's continuing to reap the rewards of legacy software and solutions. While these segments (e.g., Windows) may not be growing much, if at all, these days, they still contribute plenty of cash flow that Microsoft can direct into higher-growth innovations or acquisitions.
3. Alphabet: Current market cap of $1.52 trillion
Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the parent company of internet search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo, is also a good bet to retain its trillion-dollar market cap by 2035.
As of May 2023, Google accounted for 93.1% of global internet search share. Moreover, Google hasn't seen its share of worldwide search fall below 90% since the first quarter of 2015. This looks to be an insurmountable competitive edge for Alphabet that'll lead to significant ad-pricing power for the platform.
Alphabet's ancillary operations have plenty of momentum, too. For instance, Google Cloud has grown into the world's No. 3 cloud infrastructure service. More importantly, the segment produced its first quarterly profit in the March-ended quarter. It's on track to become a serious cash-flow driver for Alphabet.
4. Amazon: Current market cap of $1.34 trillion
E-commerce behemoth Amazon (NASDAQ: AMZN) is yet another current trillion-dollar member that should maintain its spot in this exclusive club by 2035.
Though most people are familiar with Amazon because of its world-leading online marketplace, what's really turning the wheel in terms of cash flow creation is Amazon Web Services (AWS). While Google Cloud and Azure are respectively No.'s 3 and 2 among cloud infrastructure service providers, AWS is No. 1 and accounts for just shy of a third of global cloud infrastructure service spending.
Additionally, Amazon's subscription services segment is making waves. Not only are its 200-million-plus Prime members buying more than the typical consumer, but the annual fees associated with Prime are a big lift to the company's operating margin.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
5. Berkshire Hathaway: Current market cap of $746 billion
Since billionaire Warren Buffett became CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) 58 years ago, his company's Class A shares (BRK.A) have averaged a 19.8% annualized return. Even a fraction of that annualized return over the next 12 years would allow Berkshire's stock to surpass a $1 trillion valuation.
Berkshire Hathaway's success can primarily be attributed to Buffett's love of cyclical, dividend-paying companies. Since periods of economic expansion last substantially longer than recessions, Buffett has perfectly positioned Berkshire Hathaway's investment portfolio and owned assets to benefit from a naturally expanding U.S. economy.
Berkshire is also on track to collect north of $6 billion in dividend income this year. Companies that regularly pay a dividend are usually profitable on a recurring basis and time-tested.
6. Meta Platforms: Current market cap of $727 billion
Social media stock Meta Platforms (NASDAQ: META) was once a trillion-dollar company before falling from grace. But given its competitive advantages in the social media space, regaining this trillion-dollar plateau by 2035 seems likely.
In spite of all the competition Meta has dealt with, Facebook, Instagram, WhatsApp, and Facebook Messenger are still among the most-downloaded social media apps in the world. During the first quarter, Meta's family of apps lured more than 3.8 billion unique monthly visitors, which makes the company a clear go-to for advertisers wanting to target users.
Additionally, 12 years is a significant amount of time for Meta's investments in the metaverse and augmented/virtual reality to pay off.
7. Visa: Current market cap of $497 billion
Leading payment processor Visa (NYSE: V) has a good chance to more than double in value over the next 12 years and reach a $1 trillion market cap.
As of 2021, Visa controlled close to 53% of credit card network purchase volume in the U.S., the world's largest market for consumption, and it was the only one of the four major payment processors in the U.S. to gain meaningful market share following the Great Recession (2007-2009). Between the steady long-term expansion of the U.S. economy and the higher growth potential of emerging markets, Visa's growth runway is impressively long.
To boot, Visa solely focuses on payment facilitation and doesn't lend. Not having to set aside capital to cover loan losses during short-lived recessions is a key competitive advantage over most financial stocks.
8. UnitedHealth Group: Current market cap of $447 billion
Insurer and healthcare services provider UnitedHealth Group (NYSE: UNH) has a reasonable chance to become the first healthcare stock to top the $1 trillion valuation mark by 2035.
Although most people are familiar with UnitedHealth's insurance operations, what's really fueling this company's growth potential is its subsidiary, Optum. Optum has multiple operating segments that cover everything from pharmacy care services and care delivery to the software and systems hospitals and medical organizations use. Both the growth rate and operating margin for Optum tend to outpace the insurance segment.
A sustained low-double-digit earnings growth rate is possible for UnitedHealth Group over the coming 12 years.
9. Mastercard: Current market cap of $373 billion
Although payment facilitator Mastercard (NYSE: MA) trails Visa's market share in the U.S. by nearly 29 percentage points, there's plenty of room for multiple winners. That's why I have Mastercard joining its top competitor in the trillion-dollar club by 2035.
A sizable percentage of global transactions are still being conducted in cash. This should allow Mastercard ample time to organically expand its payment infrastructure into underbaked regions, such as the Middle East, Africa, and Southeastern Asia.
Like Visa, Mastercard has also avoided the temptation of becoming a lender. By keeping things conservative, management has ensured that the company won't be hit by loan losses or delinquencies during inevitable economic downturns.
10. PayPal Holdings: Current market cap of $74 billion
Last but not least, I have fintech giant PayPal Holdings (NASDAQ: PYPL) reaching a trillion-dollar valuation by 2035. To achieve this, PayPal shares would need to rise by about 1,250% over the next 12 years (assuming a static outstanding share count).
The big catalyst for PayPal is growing digital payment adoption. Even with U.S. gross domestic product declining during the first-half of 2022, and recessionary concerns persisting into 2023, total payment volume traversing PayPal's networks has maintained a low-double-digit growth rate, sans currency movements.
Perhaps even more important is that active account engagement is climbing. When 2020 came to a close, the average active account completed fewer than 41 transactions over the trailing 12 months (TTM). As of March 31, 2023, the average active account had completed more than 53 transactions over the TTM. This is excellent news for PayPal's predominantly usage-driven, fee-generating operating model.
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 June 30, 2023
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. 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. Sean Williams has positions in Alphabet, Amazon.com, Mastercard, Meta Platforms, PayPal, and Visa. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Mastercard, Meta Platforms, Microsoft, Nvidia, PayPal, Tesla, and Visa. The Motley Fool recommends UnitedHealth Group and recommends the following options: long January 2025 $370 calls on Mastercard, short January 2025 $380 calls on Mastercard, and short September 2023 $67.50 puts on PayPal. 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: Current market cap of $3.05 trillion Considering that it could lose two-thirds of its value and still be part of the trillion-dollar valuation club, it's a pretty good bet that tech stock Apple (NASDAQ: AAPL) isn't going anywhere. If Apple can maintain its lead in the U.S. smartphone market, while continuing to build on its rapidly growing subscription services segment, it shouldn't have any trouble holding onto its spot as one of Wall Street's most influential businesses. Since periods of economic expansion last substantially longer than recessions, Buffett has perfectly positioned Berkshire Hathaway's investment portfolio and owned assets to benefit from a naturally expanding U.S. economy.
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Apple: Current market cap of $3.05 trillion Considering that it could lose two-thirds of its value and still be part of the trillion-dollar valuation club, it's a pretty good bet that tech stock Apple (NASDAQ: AAPL) isn't going anywhere. Berkshire Hathaway: Current market cap of $746 billion Since billionaire Warren Buffett became CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) 58 years ago, his company's Class A shares (BRK.A) have averaged a 19.8% annualized return. Meta Platforms: Current market cap of $727 billion Social media stock Meta Platforms (NASDAQ: META) was once a trillion-dollar company before falling from grace.
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Apple: Current market cap of $3.05 trillion Considering that it could lose two-thirds of its value and still be part of the trillion-dollar valuation club, it's a pretty good bet that tech stock Apple (NASDAQ: AAPL) isn't going anywhere. Microsoft: Current market cap of $2.53 trillion Another stock that looks like a no-brainer to maintain its existing trillion-dollar market cap is Microsoft (NASDAQ: MSFT). Alphabet: Current market cap of $1.52 trillion Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), the parent company of internet search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo, is also a good bet to retain its trillion-dollar market cap by 2035.
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Apple: Current market cap of $3.05 trillion Considering that it could lose two-thirds of its value and still be part of the trillion-dollar valuation club, it's a pretty good bet that tech stock Apple (NASDAQ: AAPL) isn't going anywhere. Meta Platforms: Current market cap of $727 billion Social media stock Meta Platforms (NASDAQ: META) was once a trillion-dollar company before falling from grace. Mastercard: Current market cap of $373 billion Although payment facilitator Mastercard (NYSE: MA) trails Visa's market share in the U.S. by nearly 29 percentage points, there's plenty of room for multiple winners.
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15037.0
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2023-07-04 00:00:00 UTC
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TSMC founder: Globalisation in technology takes backseat to national priorities
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AAPL
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https://www.nasdaq.com/articles/tsmc-founder%3A-globalisation-in-technology-takes-backseat-to-national-priorities
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By Sarah Wu
TAIPEI, July 4 (Reuters) - Globalisation is taking a backseat to priorities such as national security and technological leadership, with U.S.-China relations consisting more of competition than cooperation, the retired founder of Taiwanese chipmaker TSMC said on Tuesday.
Morris Chang, who founded the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, said globalisation has been redefined as allowing businesses to move across borders only under the condition that such exchanges do not harm national security, technological supremacy and economic leadership.
"But can this still be considered globalisation?" Chang said at a business forum in Taipei.
Chang's comments come a day after China said it would control exports of some metals widely used in the semiconductor, communications and defence industries, the latest salvo in a trade war between Beijing and the United States over access to high-tech microchips.
Chang, who at 91 remains an influential voice in the chip industry, said globalisation peaked in the 2010s and has weakened over the past several years as the U.S. and China adopt measures to boost their domestic chip industries.
He has previously declared that globalisation in the chip sector dead.
TSMC, Asia's most valuable listed company, is referred to in Taiwan as the "sacred mountain protecting the country" because of its economic importance.
While TSMC has said its most advanced manufacturing will remain on the island, the company has ramped up expansion abroad in recent years.
The company's dominance in making some of the most advanced chips for high-end customers such as Apple AAPL.O has shielded it from a broader industry downturn.
China has in recent years increased diplomatic and military pressure against Taiwan, raising concerns about the fate of the factories that dot its western coast and produce the majority of the world's most advanced chips.
Beijing views democratically governed Taiwan as its own territory, a claim the government in Taipei strongly rejects.
(Reporting by Sarah Wu; Editing by Tom Hogue)
((S.Wu@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 company's dominance in making some of the most advanced chips for high-end customers such as Apple AAPL.O has shielded it from a broader industry downturn. By Sarah Wu TAIPEI, July 4 (Reuters) - Globalisation is taking a backseat to priorities such as national security and technological leadership, with U.S.-China relations consisting more of competition than cooperation, the retired founder of Taiwanese chipmaker TSMC said on Tuesday. Morris Chang, who founded the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, said globalisation has been redefined as allowing businesses to move across borders only under the condition that such exchanges do not harm national security, technological supremacy and economic leadership.
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The company's dominance in making some of the most advanced chips for high-end customers such as Apple AAPL.O has shielded it from a broader industry downturn. By Sarah Wu TAIPEI, July 4 (Reuters) - Globalisation is taking a backseat to priorities such as national security and technological leadership, with U.S.-China relations consisting more of competition than cooperation, the retired founder of Taiwanese chipmaker TSMC said on Tuesday. Morris Chang, who founded the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, said globalisation has been redefined as allowing businesses to move across borders only under the condition that such exchanges do not harm national security, technological supremacy and economic leadership.
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The company's dominance in making some of the most advanced chips for high-end customers such as Apple AAPL.O has shielded it from a broader industry downturn. By Sarah Wu TAIPEI, July 4 (Reuters) - Globalisation is taking a backseat to priorities such as national security and technological leadership, with U.S.-China relations consisting more of competition than cooperation, the retired founder of Taiwanese chipmaker TSMC said on Tuesday. Morris Chang, who founded the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, said globalisation has been redefined as allowing businesses to move across borders only under the condition that such exchanges do not harm national security, technological supremacy and economic leadership.
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The company's dominance in making some of the most advanced chips for high-end customers such as Apple AAPL.O has shielded it from a broader industry downturn. Morris Chang, who founded the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, said globalisation has been redefined as allowing businesses to move across borders only under the condition that such exchanges do not harm national security, technological supremacy and economic leadership. Chang, who at 91 remains an influential voice in the chip industry, said globalisation peaked in the 2010s and has weakened over the past several years as the U.S. and China adopt measures to boost their domestic chip industries.
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15038.0
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2023-07-04 00:00:00 UTC
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AAPL Quantitative Stock Analysis
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AAPL
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https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-0
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click 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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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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15039.0
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2023-07-04 00:00:00 UTC
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Meta to launch Twitter challenger app Threads
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AAPL
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https://www.nasdaq.com/articles/meta-to-launch-twitter-challenger-app-threads
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nan
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nan
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By Martin Coulter
July 3 (Reuters) - Meta Platforms META.O plans to launch a Twitter-rivalling microblogging app called Threads, days after Twitter boss Elon Musk attracted criticism by announcing a temporary cap on how many posts users can read on the social media site.
Threads is expected to be released on Thursday and will allow users to retain followers from photo-sharing platform Instagram, and keep the same username, a listing on Apple's AAPL.O App Store showed.
The rollout represents a direct challenge to Twitter, which has faced numerous controversies since Musk bought the company for $44 billion in 2022.
Last week, the Tesla billionaire announced a slate of new restrictions on the app, limiting the number of tweets users could view per day, prompting outcry from many on the platform.
While alternative microblogging sites - such as Mastodon and Blue Sky - have seen an uptick in user numbers since Musk's acquisition, neither has been able to challenge Twitter.
But Instagram already has hundreds of millions of registered users and has a history of introducing new features based on the success of other social media firms.
In 2016, it added a feature called "stories" to Instagram, or user posts that disappear after a fixed amount of time, in response to the rising popularity of Snapchat.
More recently, the company's short-form video feature "Reels" has sought to challenge the rise of TikTok.
The launch of Threads represents a credible threat to Twitter under Musk, whose attempts to boost revenues and reshape the platform his own image have faced severe criticism.
After acquiring the company late last year, he laid off around 80% of staff and reinstated a number of banned accounts, such as those of former U.S. President Donald Trump and conservative satirical news site Babylon Bee.
Hundreds of advertisers, concerned by a perceived rise in harmful content on the platform, paused spending with Twitter, and internal documents seen by Reuters showed the platform's most active users becoming disengaged.
Meta did not immediately respond to a Reuters request for comment on a similar launch on the Google Play Store. Reuters approached Twitter for comment.
(Reporting by Martin Coulter in London, with Akanksha Khushi and Jahnavi Nidumolu in Bengaluru; Editing by Krishna Chandra Eluri and David Holmes)
((Martin.Coulter@thomsonreuters.com; Akanksha.Khushi@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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Threads is expected to be released on Thursday and will allow users to retain followers from photo-sharing platform Instagram, and keep the same username, a listing on Apple's AAPL.O App Store showed. By Martin Coulter July 3 (Reuters) - Meta Platforms META.O plans to launch a Twitter-rivalling microblogging app called Threads, days after Twitter boss Elon Musk attracted criticism by announcing a temporary cap on how many posts users can read on the social media site. The launch of Threads represents a credible threat to Twitter under Musk, whose attempts to boost revenues and reshape the platform his own image have faced severe criticism.
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Threads is expected to be released on Thursday and will allow users to retain followers from photo-sharing platform Instagram, and keep the same username, a listing on Apple's AAPL.O App Store showed. By Martin Coulter July 3 (Reuters) - Meta Platforms META.O plans to launch a Twitter-rivalling microblogging app called Threads, days after Twitter boss Elon Musk attracted criticism by announcing a temporary cap on how many posts users can read on the social media site. In 2016, it added a feature called "stories" to Instagram, or user posts that disappear after a fixed amount of time, in response to the rising popularity of Snapchat.
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Threads is expected to be released on Thursday and will allow users to retain followers from photo-sharing platform Instagram, and keep the same username, a listing on Apple's AAPL.O App Store showed. By Martin Coulter July 3 (Reuters) - Meta Platforms META.O plans to launch a Twitter-rivalling microblogging app called Threads, days after Twitter boss Elon Musk attracted criticism by announcing a temporary cap on how many posts users can read on the social media site. While alternative microblogging sites - such as Mastodon and Blue Sky - have seen an uptick in user numbers since Musk's acquisition, neither has been able to challenge Twitter.
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Threads is expected to be released on Thursday and will allow users to retain followers from photo-sharing platform Instagram, and keep the same username, a listing on Apple's AAPL.O App Store showed. By Martin Coulter July 3 (Reuters) - Meta Platforms META.O plans to launch a Twitter-rivalling microblogging app called Threads, days after Twitter boss Elon Musk attracted criticism by announcing a temporary cap on how many posts users can read on the social media site. The rollout represents a direct challenge to Twitter, which has faced numerous controversies since Musk bought the company for $44 billion in 2022.
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15040.0
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2023-07-03 00:00:00 UTC
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Unity Software Stock Skyrockets 46% in June as AI Buzz Takes Over
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AAPL
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https://www.nasdaq.com/articles/unity-software-stock-skyrockets-46-in-june-as-ai-buzz-takes-over
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nan
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nan
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What happened
Shares of Unity Software (NYSE: U) skyrocketed 46.1% in June, according to data provided by S&P Global Market Intelligence. The month started off with fireworks from Apple that are relevant to Unity shareholders. And it ended with a bang related to artificial intelligence (AI), Wall Street's favorite subject at the moment.
So what
To give this story some context, I want to point out that the market had lost a lot of confidence in Unity Software stock. When they first went public, shares regularly traded above a price-to-sales (P/S) ratio of 30. By comparison, they traded below a P/S of 7 at the start of June. That's still high in absolute terms. But in relative terms, this valuation was more than 80% below where it had routinely traded.
Unity's own revenue growth was ample reason for the market's pessimism. And even though its growth has since rebounded, as the chart below shows, this is largely due to an acquisition. Its organic growth is still challenged.
U Revenue (quarterly YoY growth) data by YCharts; YoY = year over year.
But on June 5, Apple announced its upcoming Vision Pro headset, and this has reinvigorated investors' excitement for Unity's potential. Apple is looking for apps to be built for the headset between now and its launch in 2024. And for this, the company has partnered with Unity.
Developers use Unity for building top-notch video games. And Apple has created a software development kit that will allow Unity users to modify their creations for the Vision Pro.
Then on June 27, Unity announced a marketplace for AI applications. The marketplace has 10 apps available at launch that can be used in the video game space. And when the company announced this new focus on AI, the market celebrated by pushing the stock higher.
So the stock started June with low expectations, but Apple and AI have investors rethinking the long-term potential.
Now what
When it comes to the AI space, I'm inclined to disregard most news as overhyped clickbait. But with Unity Software stock, I do believe that AI -- specifically generative AI -- could play an important role for the business.
Many investors like Unity's potential in virtual reality and the metaverse. Its software creates realistic 3D images, and realism is needed to make these experiences something that consumers actually want.
When building digital worlds, the problem is how big these need to be -- it's labor intensive for developers. And the workload is probably too much to physically handle at scale, which is where generative AI can help.
Much of what Unity is doing involves generative AI, which I believe is just what the space needs. So as virtual reality and the metaverse grow -- perhaps thanks to Apple's Vision Pro headset -- the use cases for Unity Software could open up as well. That's good reason for optimism for a stock that's still down almost 80% from its all-time high.
10 stocks we like better than Unity Software
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Unity Software 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 July 3, 2023
Jon Quast has positions in Unity Software. The Motley Fool has positions in and recommends Apple and Unity Software. 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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What happened Shares of Unity Software (NYSE: U) skyrocketed 46.1% in June, according to data provided by S&P Global Market Intelligence. But on June 5, Apple announced its upcoming Vision Pro headset, and this has reinvigorated investors' excitement for Unity's potential. So as virtual reality and the metaverse grow -- perhaps thanks to Apple's Vision Pro headset -- the use cases for Unity Software could open up as well.
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U Revenue (quarterly YoY growth) data by YCharts; YoY = year over year. But on June 5, Apple announced its upcoming Vision Pro headset, and this has reinvigorated investors' excitement for Unity's potential. So as virtual reality and the metaverse grow -- perhaps thanks to Apple's Vision Pro headset -- the use cases for Unity Software could open up as well.
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But with Unity Software stock, I do believe that AI -- specifically generative AI -- could play an important role for the business. 10 stocks we like better than Unity Software When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of July 3, 2023 Jon Quast has positions in Unity Software.
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But in relative terms, this valuation was more than 80% below where it had routinely traded. Unity's own revenue growth was ample reason for the market's pessimism. And Apple has created a software development kit that will allow Unity users to modify their creations for the Vision Pro.
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15041.0
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2023-07-03 00:00:00 UTC
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Samsung sues Chinese rival over alleged patent violation on iPhone displays
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AAPL
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https://www.nasdaq.com/articles/samsung-sues-chinese-rival-over-alleged-patent-violation-on-iphone-displays
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nan
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nan
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By Hyunjoo Jin
SAN FRANCISCO, July 3 (Reuters) - South Korea's Samsung Display has filed a lawsuit against BOE Technology 000725.SZ, accusing the Chinese rival of infringing five of its patents for displays used in mobile devices including Apple's AAPL.O iPhone 12.
Samsung Display, a unit of Samsung Electronics 005930.KS, asked a federal jury in Texas to award damages for the infringement of patents regarding organic light emitting diode (OLED) displays supplied by BOE. Samsung also seeks an injunction from the court to halt the import and sale of the affected displays.
The case was filed on Wednesday with the U.S. court in East Texas, which has a reputation for quicker hearings and decisions on cases.
Apple has been using OLED displays on some of its Apple Watch and iPhone models, including the latest iPhone 14. Apple says OLED delivers high resolution and allows for a thinner display than a traditional display.
The OLED display market is dominated by Samsung Display, with BOE narrowing the gap, overtaking South Korea's LG Display 034220.KS as the No. 2 player last year, according to market researcher Omdia.
"Samsung Display has suffered, and will continue to suffer, irreparable harm as a result of Defendants’ infringement of the '599 Patent' for which there is no adequate remedy at law, unless Defendants’ infringement is enjoined by this Court," the lawsuit says, referring to the 599 patent, which improves the image quality of a device.
In December, Samsung Display filed a complaint with the U.S. International Trade Commission, alleging patent infringement by numerous companies selling OLED screens as replacement displays for mobile devices, triggering an investigation by the agency.
Samsung and Apple did not immediately respond to requests for comments.
Samsung Display executive Choi Kwon-young said in January last year that the company was actively seeking ways to receive compensation for its intellectual property, in a response to an analyst question about rising competition in the mobile OLED screen market.
South Korea is a manufacturing powerhouse for items ranging from chips and displays to automobiles, but South Korean companies have been facing a growing threat from rivals in China.
Last month, a former executive at Samsung Electronics was indicted on suspicion of stealing company technology for a copycat chip factory in China and jeopardising national economic security, prosecutors said.
(Reporting by Hyunjoo Jin and Stephen Nellis in San Francisco Editing by Matthew Lewis)
((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters Messaging: hyunjoo.jin.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 Hyunjoo Jin SAN FRANCISCO, July 3 (Reuters) - South Korea's Samsung Display has filed a lawsuit against BOE Technology 000725.SZ, accusing the Chinese rival of infringing five of its patents for displays used in mobile devices including Apple's AAPL.O iPhone 12. "Samsung Display has suffered, and will continue to suffer, irreparable harm as a result of Defendants’ infringement of the '599 Patent' for which there is no adequate remedy at law, unless Defendants’ infringement is enjoined by this Court," the lawsuit says, referring to the 599 patent, which improves the image quality of a device. Samsung Display executive Choi Kwon-young said in January last year that the company was actively seeking ways to receive compensation for its intellectual property, in a response to an analyst question about rising competition in the mobile OLED screen market.
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By Hyunjoo Jin SAN FRANCISCO, July 3 (Reuters) - South Korea's Samsung Display has filed a lawsuit against BOE Technology 000725.SZ, accusing the Chinese rival of infringing five of its patents for displays used in mobile devices including Apple's AAPL.O iPhone 12. In December, Samsung Display filed a complaint with the U.S. International Trade Commission, alleging patent infringement by numerous companies selling OLED screens as replacement displays for mobile devices, triggering an investigation by the agency. Samsung Display executive Choi Kwon-young said in January last year that the company was actively seeking ways to receive compensation for its intellectual property, in a response to an analyst question about rising competition in the mobile OLED screen market.
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By Hyunjoo Jin SAN FRANCISCO, July 3 (Reuters) - South Korea's Samsung Display has filed a lawsuit against BOE Technology 000725.SZ, accusing the Chinese rival of infringing five of its patents for displays used in mobile devices including Apple's AAPL.O iPhone 12. Samsung Display, a unit of Samsung Electronics 005930.KS, asked a federal jury in Texas to award damages for the infringement of patents regarding organic light emitting diode (OLED) displays supplied by BOE. The OLED display market is dominated by Samsung Display, with BOE narrowing the gap, overtaking South Korea's LG Display 034220.KS as the No.
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By Hyunjoo Jin SAN FRANCISCO, July 3 (Reuters) - South Korea's Samsung Display has filed a lawsuit against BOE Technology 000725.SZ, accusing the Chinese rival of infringing five of its patents for displays used in mobile devices including Apple's AAPL.O iPhone 12. Apple has been using OLED displays on some of its Apple Watch and iPhone models, including the latest iPhone 14. South Korea is a manufacturing powerhouse for items ranging from chips and displays to automobiles, but South Korean companies have been facing a growing threat from rivals in China.
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15042.0
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2023-07-03 00:00:00 UTC
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Stock Market News for Jul 3, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-jul-3-2023
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nan
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nan
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Wall Street ended sharply higher on Friday, pulled up by mega-cap tech stocks. Investor mood was generally upbeat on closing out a strong quarter and the first half of the year. All three major indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.8% or 285.18 points to close at 34,407.6. Twenty-six components of the 30-stock index ended in positive territory, while four ended in negative.
The S&P 500 gained 1.2%, or 53.94 points, to close at 4,450.38. All the 11 broad sectors of the benchmark index ended in positive territory. The Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY) and the Utilities Select Sector SPDR (XLU) advanced 1.6%, 1.3% and 1.1%, respectively.
The tech-heavy Nasdaq advanced 196.59 points, or 1.5%, to finish at 13,787.92.
The fear-gauge CBOE Volatility Index (VIX) was up 0.4% at 13.59. A total of 10.4 billion shares were traded on Friday, lower than the last 20-session average of 11.3 billion.
Market Closes Out a Strong First Half to the Year
Mega-cap tech stocks, which have contributed the most in the strong showing of the market in 2023, rose on Friday to close out a strong second quarter and a stellar first half of the year. A recent slew of economic data has re-instated investors’ belief that the economy remains resilient and inflation will continue to come down to the Fed’s target level of 2%.
Even as market participants continue to price in the eventuality that the Fed would be increasing interest rates by another 25 bps in its July meeting, there is a general feeling that we might be very close to the actual end of the rate-hike cycle. Investors are currently pricing in an 84% probability that the central bank will implement the aforementioned hike per the CME-owned FedWatch tool. Fed officials continue to remain hawkish, though. However, the very fact that they have insisted on being data-driven while deciding on monetary policy keeps investors hopeful.
The positive vibe around the breakthrough made in Artificial Intelligence technology has primarily driven the market in this first half of the year. Tech has made the most, as it did on Friday. Consequently, shares of NVIDIA Corporation NVDA and Apple Inc. AAPL jumped 3.6% and 2.3%, respectively. NVIDIA sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Weekly Roundup
The three benchmark indexes closed out a winning week on the back of strong economic data and anticipation of a dovish Fed in the near future. For the week, the S&P 500 added 2.4%, the Nasdaq added 2.2% and the Dow climbed 2%.
Monthly Roundup
For June, the Nasdaq and the S&P 500 added 6.6% and 6.5%, respectively, while the Dow Jones added 4.6%.
Quarterly Roundup
The S&P 500 rose 8.3%, marking a third straight quarter of gains and the index’s biggest quarterly advance since fourth-quarter 2021. The Nasdaq gained 12.8% for the second straight positive quarter. The Dow advanced 3.4% for a third winning quarter.
Half-Yearly Roundup
In the first half of 2023, the S&P 500 jumped a stellar 15.9% to close out its best first half since 2019. The biggest mover, however, was Nasdaq, which surged 31.7% in its best first half since 1983. The Dow Jones added a modest 3.8% in the same period.
Economic Data
The Bureau of Economic Analysis reported that the PCE Index for the month had come down to a 0.1% increase in May, as opposed to an unchanged 0.4% for April. Core PCE increased 0.3% in the same period compared with 0.4% in April. Personal Spending increased 0.1%.
Personal income increased 0.4% in May compared with a revised 0.3% increase in April. The April figure was revised down from 0.4%. The personal savings rate increased 4.6% in May compared with 4.3% in April, which was revised up from 4.1%.
The University of Michigan reported that consumer confidence for June had come in at 64.4 against a consensus of 64. The May figure remained unchanged at 63.9.
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
NVIDIA Corporation (NVDA) : 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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Consequently, shares of NVIDIA Corporation NVDA and Apple Inc. AAPL jumped 3.6% and 2.3%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. A recent slew of economic data has re-instated investors’ belief that the economy remains resilient and inflation will continue to come down to the Fed’s target level of 2%.
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Consequently, shares of NVIDIA Corporation NVDA and Apple Inc. AAPL jumped 3.6% and 2.3%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. The Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY) and the Utilities Select Sector SPDR (XLU) advanced 1.6%, 1.3% and 1.1%, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, shares of NVIDIA Corporation NVDA and Apple Inc. AAPL jumped 3.6% and 2.3%, respectively. Market Closes Out a Strong First Half to the Year Mega-cap tech stocks, which have contributed the most in the strong showing of the market in 2023, rose on Friday to close out a strong second quarter and a stellar first half of the year.
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Consequently, shares of NVIDIA Corporation NVDA and Apple Inc. AAPL jumped 3.6% and 2.3%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. All the 11 broad sectors of the benchmark index ended in positive territory.
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15043.0
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2023-07-03 00:00:00 UTC
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Meta to launch Twitter-like app Threads
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AAPL
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https://www.nasdaq.com/articles/meta-to-launch-twitter-like-app-threads
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nan
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nan
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July 3 (Reuters) - Meta Platforms META.O plans to launch a microblogging app, Threads, days after Twitter executive chair Elon Musk announced a temporary cap on how many posts users can read on the social media site.
Threads, Instagram's text-based conversation app, is expected to be released on Thursday and will allow users to follow the accounts they follow on the photo-sharing platform and keep the same username, a listing on Apple's AAPL.O App Store showed.
The launch comes after Twitter announced a slate of restrictions on the app, including the need to be verified in order to use TweetDeck.
Musk's latest announcements to address data scraping have sparked a fierce backlash from Twitter users and ad experts said it would undermine new CEO Linda Yaccarino, who started in the role last month.
Meta did not immediately respond to a Reuters request for comment on a similar launch on the Google Play Store.
(Reporting by Akanksha Khushi and Jahnavi Nidumolu in Bengaluru; Editing by Krishna Chandra Eluri)
((Akanksha.Khushi@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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Threads, Instagram's text-based conversation app, is expected to be released on Thursday and will allow users to follow the accounts they follow on the photo-sharing platform and keep the same username, a listing on Apple's AAPL.O App Store showed. July 3 (Reuters) - Meta Platforms META.O plans to launch a microblogging app, Threads, days after Twitter executive chair Elon Musk announced a temporary cap on how many posts users can read on the social media site. Musk's latest announcements to address data scraping have sparked a fierce backlash from Twitter users and ad experts said it would undermine new CEO Linda Yaccarino, who started in the role last month.
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Threads, Instagram's text-based conversation app, is expected to be released on Thursday and will allow users to follow the accounts they follow on the photo-sharing platform and keep the same username, a listing on Apple's AAPL.O App Store showed. July 3 (Reuters) - Meta Platforms META.O plans to launch a microblogging app, Threads, days after Twitter executive chair Elon Musk announced a temporary cap on how many posts users can read on the social media site. Musk's latest announcements to address data scraping have sparked a fierce backlash from Twitter users and ad experts said it would undermine new CEO Linda Yaccarino, who started in the role last month.
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Threads, Instagram's text-based conversation app, is expected to be released on Thursday and will allow users to follow the accounts they follow on the photo-sharing platform and keep the same username, a listing on Apple's AAPL.O App Store showed. July 3 (Reuters) - Meta Platforms META.O plans to launch a microblogging app, Threads, days after Twitter executive chair Elon Musk announced a temporary cap on how many posts users can read on the social media site. (Reporting by Akanksha Khushi and Jahnavi Nidumolu in Bengaluru; Editing by Krishna Chandra Eluri) ((Akanksha.Khushi@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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Threads, Instagram's text-based conversation app, is expected to be released on Thursday and will allow users to follow the accounts they follow on the photo-sharing platform and keep the same username, a listing on Apple's AAPL.O App Store showed. July 3 (Reuters) - Meta Platforms META.O plans to launch a microblogging app, Threads, days after Twitter executive chair Elon Musk announced a temporary cap on how many posts users can read on the social media site. The launch comes after Twitter announced a slate of restrictions on the app, including the need to be verified in order to use TweetDeck.
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15044.0
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2023-07-03 00:00:00 UTC
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The 3 Best Momentum Stocks to Buy in July 2023
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AAPL
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https://www.nasdaq.com/articles/the-3-best-momentum-stocks-to-buy-in-july-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As we venture into July, the hunt for momentum stocks to buy is heating up. A few of the market’s top performers are potentially on the brink of a breakout. Some factors fueling their surge relate to strong earnings reports, the release of innovative new products, and an uptick in investor sentiment. These high-octane stocks have the potential to notch up short-term profits for savvy investors who can seize the momentum at the right time.
If the economic landscape continues to brighten, and we can effectively sidestep the lingering recession, we may find ourselves amid a bull market. This could serve as a further catalyst for the best momentum stocks this July. Let’s look at three such stocks to invest in now.
Apple (AAPL)
6-Month % Gain: 49%+
Source: Vytautas Kielaitis / Shutterstock.com
Apple (NASDAQ:AAPL), renowned for its premium product offerings, maintains its reputation as a maestro of high-end market positioning. From iPhones to MacBooks, the tech titan has an uncanny knack for selling its legacy products suite at top-tier prices.
In an exciting new chapter, Apple is venturing into the realm of virtual reality with the Vision Pro. Despite VR headsets finding a niche within the gaming sphere, broader traction remains elusive. A successful launch could see a revenue surge, with the high-end headset slated for release next year sporting a $3,499 price tag.
Moreover, the second half of the year promises could be massive for the firm. The driving force is the anticipated release of the new iPhone in the third quarter. The new iPhone represents a significant sales opportunity with an average sale price nearing $1,000. Barclays analysts anticipate nearly 89 million iPhone 15 units could be sold in the first year alone. This paints a robust picture for the company’s financial prospects.
Lululemon (LULU)
6-Month % Gain: 18%+
Source: Richard Frazier / Shutterstock.com
Riding high on its stellar first-quarter earnings report, high-end athletic apparel retailer Lululemon (NASDAQ:LULU) is basking in the investor limelight. In contrast to other retailers grappling with crippling economic conditions, Lululemon has effectively navigated these waters with self-assurance. This has bolstered investor optimism with its sturdy financial performance and upgraded guidance.
Lululemon has won the hearts of American consumers reporting first-quarter sales of $2 billion, marking a 24% year-on-year bump from the prior-year period. While the U.S. remains a major revenue contributor, Lululemon’s global footprint is expanding, highlighted by a 60% increase in international sales in the quarter.
As the company powers ahead with its “Power of Three x2” plan, investors can anticipate steady growth for the foreseeable future. The strategy refers to the plan of doubling the business over the next five years. With projected 2023 sales of $9.48 billion at the mid-point, a 17% increase from last year, and earnings per share of around $11.84, the future for Lululemon looks incredible.
FedEx (FDX)
6-Month % Gain: 43%+
Source: Antonio Gravante / Shutterstock.com
Shipping and logistics behemoth FedEx (NYSE:FDX) stumbled in trading after reporting a dip in global volume in its recently released fourth-quarter results. This set full-year profit guidance below market expectations. The Memphis-based firm fell short of consensus estimates with quarterly total revenue of $21.9 billion. However, the prevailing sentiment around FedEx is far from doom and gloom.
In fact, market watchers are lauding the major strides FedEx has made in slashing structural and variable costs. This initiative aligns with a broader strategy. This is aimed at building a flexible network that can respond to fluctuations in cost and demand. Additionally, the proactive approach to cost management has the market punditry growing bullish on FDX stock.
The company also highlighted its ongoing commitment. They will reduce costs within FedEx Freight through furloughs to align staffing with demand and network optimization. Consequently, it delivered an adjusted operating income figure of $1.77 billion for the quarter, surpassing the $1.69 billion consensus.
On the date of publication, Muslim Farooque did not have (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
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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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) 6-Month % Gain: 49%+ Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL), renowned for its premium product offerings, maintains its reputation as a maestro of high-end market positioning. Some factors fueling their surge relate to strong earnings reports, the release of innovative new products, and an uptick in investor sentiment. Lululemon has won the hearts of American consumers reporting first-quarter sales of $2 billion, marking a 24% year-on-year bump from the prior-year period.
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Apple (AAPL) 6-Month % Gain: 49%+ Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL), renowned for its premium product offerings, maintains its reputation as a maestro of high-end market positioning. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As we venture into July, the hunt for momentum stocks to buy is heating up. Lululemon (LULU) 6-Month % Gain: 18%+ Source: Richard Frazier / Shutterstock.com Riding high on its stellar first-quarter earnings report, high-end athletic apparel retailer Lululemon (NASDAQ:LULU) is basking in the investor limelight.
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Apple (AAPL) 6-Month % Gain: 49%+ Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL), renowned for its premium product offerings, maintains its reputation as a maestro of high-end market positioning. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As we venture into July, the hunt for momentum stocks to buy is heating up. Lululemon (LULU) 6-Month % Gain: 18%+ Source: Richard Frazier / Shutterstock.com Riding high on its stellar first-quarter earnings report, high-end athletic apparel retailer Lululemon (NASDAQ:LULU) is basking in the investor limelight.
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Apple (AAPL) 6-Month % Gain: 49%+ Source: Vytautas Kielaitis / Shutterstock.com Apple (NASDAQ:AAPL), renowned for its premium product offerings, maintains its reputation as a maestro of high-end market positioning. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As we venture into July, the hunt for momentum stocks to buy is heating up. Lululemon (LULU) 6-Month % Gain: 18%+ Source: Richard Frazier / Shutterstock.com Riding high on its stellar first-quarter earnings report, high-end athletic apparel retailer Lululemon (NASDAQ:LULU) is basking in the investor limelight.
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15045.0
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2023-07-03 00:00:00 UTC
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Noteworthy Monday Option Activity: AAPL, CSCO, MRNA
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AAPL
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-aapl-csco-mrna
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 681,970 contracts have traded so far, representing approximately 68.2 million underlying shares. That amounts to about 111% of AAPL's average daily trading volume over the past month of 61.4 million shares. Especially high volume was seen for the $195 strike call option expiring July 07, 2023, with 65,979 contracts trading so far today, representing approximately 6.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange:
Cisco Systems Inc (Symbol: CSCO) saw options trading volume of 157,725 contracts, representing approximately 15.8 million underlying shares or approximately 91.5% of CSCO's average daily trading volume over the past month, of 17.2 million shares. Particularly high volume was seen for the $47.50 strike call option expiring July 21, 2023, with 40,948 contracts trading so far today, representing approximately 4.1 million underlying shares of CSCO. Below is a chart showing CSCO's trailing twelve month trading history, with the $47.50 strike highlighted in orange:
And Moderna Inc (Symbol: MRNA) saw options trading volume of 24,712 contracts, representing approximately 2.5 million underlying shares or approximately 84% of MRNA's average daily trading volume over the past month, of 2.9 million shares. Especially high volume was seen for the $190 strike put option expiring July 21, 2023, with 3,598 contracts trading so far today, representing approximately 359,800 underlying shares of MRNA. Below is a chart showing MRNA's trailing twelve month trading history, with the $190 strike highlighted in orange:
For the various different available expirations for AAPL options, CSCO options, or MRNA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
DVMT Insider Buying
PLSE Average Annual Return
Funds Holding XPL
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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Especially high volume was seen for the $195 strike call option expiring July 07, 2023, with 65,979 contracts trading so far today, representing approximately 6.6 million underlying shares of AAPL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 681,970 contracts have traded so far, representing approximately 68.2 million underlying shares. That amounts to about 111% of AAPL's average daily trading volume over the past month of 61.4 million shares.
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Especially high volume was seen for the $195 strike call option expiring July 07, 2023, with 65,979 contracts trading so far today, representing approximately 6.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange: Cisco Systems Inc (Symbol: CSCO) saw options trading volume of 157,725 contracts, representing approximately 15.8 million underlying shares or approximately 91.5% of CSCO's average daily trading volume over the past month, of 17.2 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 681,970 contracts have traded so far, representing approximately 68.2 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 681,970 contracts have traded so far, representing approximately 68.2 million underlying shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange: Cisco Systems Inc (Symbol: CSCO) saw options trading volume of 157,725 contracts, representing approximately 15.8 million underlying shares or approximately 91.5% of CSCO's average daily trading volume over the past month, of 17.2 million shares. That amounts to about 111% of AAPL's average daily trading volume over the past month of 61.4 million shares.
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Especially high volume was seen for the $195 strike call option expiring July 07, 2023, with 65,979 contracts trading so far today, representing approximately 6.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange: Cisco Systems Inc (Symbol: CSCO) saw options trading volume of 157,725 contracts, representing approximately 15.8 million underlying shares or approximately 91.5% of CSCO's average daily trading volume over the past month, of 17.2 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 681,970 contracts have traded so far, representing approximately 68.2 million underlying shares.
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15046.0
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2023-07-03 00:00:00 UTC
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Apple (AAPL) Stock Sinks As Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-stock-sinks-as-market-gains%3A-what-you-should-know-4
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Apple (AAPL) closed the most recent trading day at $192.46, moving -0.78% from the previous trading session. This change lagged the S&P 500's daily gain of 0.12%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.14%.
Investors will be hoping for strength from Apple as it approaches its next earnings release. On that day, Apple is projected to report earnings of $1.44 per share, which would represent year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $81.11 billion, down 2.23% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.99 per share and revenue of $384.34 billion, which would represent changes of -1.96% and -2.53%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Apple is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 32.37. For comparison, its industry has an average Forward P/E of 9.18, which means Apple is trading at a premium to the group.
Investors should also note that AAPL has a PEG ratio of 2.59 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Mini computers industry currently had an average PEG ratio of 2.29 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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 $192.46, moving -0.78% from the previous trading session. Investors should also note that AAPL has a PEG ratio of 2.59 right now. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Apple (AAPL) closed the most recent trading day at $192.46, moving -0.78% from the previous trading session. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors should also note that AAPL has a PEG ratio of 2.59 right now.
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Apple (AAPL) closed the most recent trading day at $192.46, moving -0.78% from the previous trading session. Investors should also note that AAPL has a PEG ratio of 2.59 right now. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Apple (AAPL) closed the most recent trading day at $192.46, moving -0.78% from the previous trading session. Investors should also note that AAPL has a PEG ratio of 2.59 right now. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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15047.0
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2023-07-03 00:00:00 UTC
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US STOCKS-Nasdaq futures rise before holiday as Tesla rallies
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-futures-rise-before-holiday-as-tesla-rallies
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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
Futures: Dow slips 0.10%, S&P up 0.06%, Nasdaq adds 0.28%
July 3 (Reuters) - Nasdaq 100 futures rose on Monday, with the tech-heavy index set to extend its rally to the second half of the year, as shares of electric vehicle maker Tesla surged after reporting a record number of vehicles deliveries in the second quarter.
TeslaTSLA.O gained 6.1% in premarket trading after the EV maker's delivery numbers in the second quarter topped market estimates following incentives and increased discounts.
All three major U.S. indexes defied recession fears and uncertainty from the U.S. banking crisis to end the first half of the year on a positive note, with the Nasdaq Composite.IXIC rallying 31.7% to its biggest first-half increase in four decades.
"Powered by the AI frenzy of enthusiasm, a handful of technology firms have become money magnets, deflecting any concerns about the impact of high interest rates and banking turmoil," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"The second half of the year is still set to be dominated by speculation over just how high interest rates will go and how long they will stay there."
Investors awaited the minutes of the Federal Reserve's last policy meeting, out on Wednesday, for cues on the central bank's monetary tightening path and why the Fed decided to pause rate hikes.
At 05:05 a.m. ET, Dow e-minis 1YMcv1 were down 36 points, or 0.1%, S&P 500 e-minis EScv1 were up 2.5 points, or 0.06%, and Nasdaq 100 e-minis NQcv1 were up 42.25 points, or 0.28%.
Markets will be closed on Tuesday on account of the Independence Day holiday.
Other closely watched U.S. data this week includes surveys on manufacturing and services, job openings and the June payrolls report.
Among other movers, AppleAAPL.O slipped 0.1%, after a strong rally last week that helped the world's most-valuable company hit market capitalization above $3 trillion on Friday.
U.S.-listed shares of Chinese carmaker Xpeng XPEV.N jumped 10.8% after reporting that its second quarter deliveries rose 27% from the first quarter.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Pooja Desai)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar;))
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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Among other movers, AppleAAPL.O slipped 0.1%, after a strong rally last week that helped the world's most-valuable company hit market capitalization above $3 trillion on Friday. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures: Dow slips 0.10%, S&P up 0.06%, Nasdaq adds 0.28% July 3 (Reuters) - Nasdaq 100 futures rose on Monday, with the tech-heavy index set to extend its rally to the second half of the year, as shares of electric vehicle maker Tesla surged after reporting a record number of vehicles deliveries in the second quarter. All three major U.S. indexes defied recession fears and uncertainty from the U.S. banking crisis to end the first half of the year on a positive note, with the Nasdaq Composite.IXIC rallying 31.7% to its biggest first-half increase in four decades.
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Among other movers, AppleAAPL.O slipped 0.1%, after a strong rally last week that helped the world's most-valuable company hit market capitalization above $3 trillion on Friday. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures: Dow slips 0.10%, S&P up 0.06%, Nasdaq adds 0.28% July 3 (Reuters) - Nasdaq 100 futures rose on Monday, with the tech-heavy index set to extend its rally to the second half of the year, as shares of electric vehicle maker Tesla surged after reporting a record number of vehicles deliveries in the second quarter. "Powered by the AI frenzy of enthusiasm, a handful of technology firms have become money magnets, deflecting any concerns about the impact of high interest rates and banking turmoil," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
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Among other movers, AppleAAPL.O slipped 0.1%, after a strong rally last week that helped the world's most-valuable company hit market capitalization above $3 trillion on Friday. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures: Dow slips 0.10%, S&P up 0.06%, Nasdaq adds 0.28% July 3 (Reuters) - Nasdaq 100 futures rose on Monday, with the tech-heavy index set to extend its rally to the second half of the year, as shares of electric vehicle maker Tesla surged after reporting a record number of vehicles deliveries in the second quarter. All three major U.S. indexes defied recession fears and uncertainty from the U.S. banking crisis to end the first half of the year on a positive note, with the Nasdaq Composite.IXIC rallying 31.7% to its biggest first-half increase in four decades.
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Among other movers, AppleAAPL.O slipped 0.1%, after a strong rally last week that helped the world's most-valuable company hit market capitalization above $3 trillion on Friday. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures: Dow slips 0.10%, S&P up 0.06%, Nasdaq adds 0.28% July 3 (Reuters) - Nasdaq 100 futures rose on Monday, with the tech-heavy index set to extend its rally to the second half of the year, as shares of electric vehicle maker Tesla surged after reporting a record number of vehicles deliveries in the second quarter. TeslaTSLA.O gained 6.1% in premarket trading after the EV maker's delivery numbers in the second quarter topped market estimates following incentives and increased discounts.
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15048.0
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2023-07-03 00:00:00 UTC
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Apple Faces Production Challenges With Vision Pro Headset Leading To Drastic Cuts In Forecasts
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AAPL
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https://www.nasdaq.com/articles/apple-faces-production-challenges-with-vision-pro-headset-leading-to-drastic-cuts-in
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nan
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(RTTNews) - Apple's highly anticipated Vision Pro mixed reality headset is facing production challenges, leading to "drastic cuts" in its production forecasts, according to a report by the Financial Times.
The $3,500 headset, expected to be released early next year, has been met with speculation about the lengthy gap between its unveiling at WWDC in June and the official launch.
Analysts suggest that this delay may be attributed to supply chain difficulties rather than providing developers with ample time to create apps for the device.
The report indicates that Apple has been dissatisfied with the manufacturing partners responsible for supplying the micro-OLED displays for the wearer's eyes and the outward-facing curved lenticular lens. While Sony and TSMC are said to have provided the micro-OLED displays for prototypes, it remains unknown who will be the supplier at scale.
Due to these production challenges, Apple is reportedly expecting to produce fewer than 400,000 units in 2024, according to sources close to the company and Luxshare, the Chinese contract manufacturer initially tasked with assembling the device. In contrast, two Chinese component suppliers have allegedly been asked to provide materials for only 130,000 to 150,000 units in the first year.
The Financial Times notes that both production estimates represent a significant reduction from an earlier internal sales target of 1 million units within the first 12 months. Analysts and industry experts believe that Apple's conservative forecasts reflect a lack of confidence in scaling up production, following years of missed deadlines for the device's launch.
In the meantime, Apple has reportedly postponed plans to introduce a more affordable version of the headset targeting the mass market. The company has been collaborating with Korean display makers Samsung and LG for the second-generation headset, exploring the use of mini-LED technology to lower costs. However, sources indicate that Apple continues to insist on using micro-OLED displays, even for the non-Pro headset, despite suppliers failing to meet expectations.
Bloomberg's Mark Gurman previously reported that Apple intends to release a more affordable version of its Vision Pro headset by the end of 2025, potentially named "Apple Vision One" or simply "Apple Vision."
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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Due to these production challenges, Apple is reportedly expecting to produce fewer than 400,000 units in 2024, according to sources close to the company and Luxshare, the Chinese contract manufacturer initially tasked with assembling the device. The Financial Times notes that both production estimates represent a significant reduction from an earlier internal sales target of 1 million units within the first 12 months. Analysts and industry experts believe that Apple's conservative forecasts reflect a lack of confidence in scaling up production, following years of missed deadlines for the device's launch.
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(RTTNews) - Apple's highly anticipated Vision Pro mixed reality headset is facing production challenges, leading to "drastic cuts" in its production forecasts, according to a report by the Financial Times. Due to these production challenges, Apple is reportedly expecting to produce fewer than 400,000 units in 2024, according to sources close to the company and Luxshare, the Chinese contract manufacturer initially tasked with assembling the device. Bloomberg's Mark Gurman previously reported that Apple intends to release a more affordable version of its Vision Pro headset by the end of 2025, potentially named "Apple Vision One" or simply "Apple Vision."
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(RTTNews) - Apple's highly anticipated Vision Pro mixed reality headset is facing production challenges, leading to "drastic cuts" in its production forecasts, according to a report by the Financial Times. Due to these production challenges, Apple is reportedly expecting to produce fewer than 400,000 units in 2024, according to sources close to the company and Luxshare, the Chinese contract manufacturer initially tasked with assembling the device. Bloomberg's Mark Gurman previously reported that Apple intends to release a more affordable version of its Vision Pro headset by the end of 2025, potentially named "Apple Vision One" or simply "Apple Vision."
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(RTTNews) - Apple's highly anticipated Vision Pro mixed reality headset is facing production challenges, leading to "drastic cuts" in its production forecasts, according to a report by the Financial Times. Due to these production challenges, Apple is reportedly expecting to produce fewer than 400,000 units in 2024, according to sources close to the company and Luxshare, the Chinese contract manufacturer initially tasked with assembling the device. Bloomberg's Mark Gurman previously reported that Apple intends to release a more affordable version of its Vision Pro headset by the end of 2025, potentially named "Apple Vision One" or simply "Apple Vision."
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15049.0
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2023-07-03 00:00:00 UTC
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Top Analyst Reports for Apple, Verizon & Amgen
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AAPL
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https://www.nasdaq.com/articles/top-analyst-reports-for-apple-verizon-amgen
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nan
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Monday, July 3, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Verizon Communications Inc. (VZ) and Amgen Inc. (AMGN). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares have been standout perfomers this year, outperforming the Zacks Tech sector ((+47.9% vs. +37.3%) and the S&P 500 index (+47.9% vs. +16.9). The company is benefiting from steady demand for iPhone 14 and 14 Plus as well as expanding footprint in emerging markets. Growing services subscriber base and improving customer engagement are tailwinds for the services business.
Apple is expanding service offerings with the new features and enhancements in its upcoming iOS 17, iPadOS 17, macOS Sonoma, watchOS 10, and tvOS 17. Expanding content on Apple TV+ bodes well for Apple. Growing footprint in enterprise market is encouraging.
However, services’ revenue growth in the fiscal third quarter is expected to be similar to the fiscal second quarter. Apple expects services to be negatively impacted by challenging macroeconomic conditions, as well as continued weakness in digital advertising and mobile gaming.
(You can read the full research report on Apple here >>>)
Shares of Verizon have declined -6.6% over the past six months against the Zacks Wireless National industry’s decline of -7.2%. The company has reiterated its soft guidance for 2023 due to a challenging macroeconomic environment. Continued retail prepaid and postpaid net losses are hindering the top line of the company. Stiff competition from other major players and saturation in the U.S. wireless market is hurting profits.
Heavy spending on promotional activities to attract customers is also weighing on margins. Nevertheless, Verizon is witnessing significant 5G adoption and fixed wireless broadband momentum. It is offering various mix and match pricing in both wireless and home broadband plans that has led to solid customer additions.
Strong demand for Fios and fixed wireless products are tailwinds. Verizon’s mmWave footprint delivers game-changing experience for the densest parts of the network and offers reliable signal waves with enhanced efficiency and less interference.
(You can read the full research report on Verizon here >>>)
Amgen shares have declined -6.5% over the past year against the Zacks Medical - Biomedical and Genetics industry’s decline of -7.1%. While the company’s key drugs like Prolia, Repatha and Evenity are driving sales, increasing competition for its legacy products is hurting the same.
Amgen is rapidly advancing its robust oncology and immunology pipeline. Several data readouts are expected in the second half of 2023. Amgen boasts a strong biosimilars portfolio with potential new products expected to drive long-term growth.
However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products, including some biosimilars. Increasing biosimilar competition for some legacy products and weakness in key brands like Otezla and Lumakras create potential revenue headwinds.
(You can read the full research report on Amgen here >>>)
Other noteworthy reports we are featuring today include The Charles Schwab Corporation (SCHW), Marsh & McLennan Companies, Inc. (MMC) and The Cigna Group (CI).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Verizon (VZ) Rides on Wireless Taction, Customer Additions
Amgen (AMGN) Rapidly Advancing Pipeline Development
Featured Reports
Strategic Acquisitions Aid Schwab (SCHW) Amid Cost Concerns
Per the Zacks analyst, while Schwab's inorganic growth initiatives & other revenue diversification efforts will aid profits, it might lead to higher costs, thus hurting the bottom line to an extent.
Rising Revenues Aid Marsh & McLennan (MMC) Amid High Expenses
Per the Zacks analyst, the company's increasing top line, courtesy of diverse product offerings and solid client retention rate has led to significant growth. However higher costs might hamper margins
Cigna (CI) Benefits from Growing Membership, High Costs Hurt
Per the Zacks analyst, Cigna gains from improving membership and solid performances of Evernorth Health Services and Cigna Healthcare businesses. However, rising costs are a concern.
CSX's Dividend Payouts Boost Prospects Amid Fuel Cost Woes
The Zacks analyst is impressed by CSX's efforts to reward its shareholders. However, high operating expenses, mainly due to elevated fuel costs, are hurting its bottom line.
Uniform Rental Unit Aids Cintas (CTAS) Amid Cost Woes
The Zacks analyst is encouraged by strength in the Uniform Rental and Facility Services unit due to increased volumes and higher prices. However, escalating cost of sales is worrisome.
Strong End Markets Aid Avantor (AVTR) Amid Stiff Competition
The Zacks analyst is upbeat about Avantor's continued strength in its end markets and product groups despite its operation in a highly competitive market.
Acquisitions to Aid Heico (HEI), Supply Chain Issue Woes
Per the Zacks analyst, disciplined acquisition strategy has been driving Heico's overall performance. However, supply chain disruptions have been impacting the company's material prices
New Upgrades
Energy Drinks Category Aids Growth at Monster Beverage (MNST)
Per the Zacks analyst, Monster Beverage is experiencing continued strength in its energy drinks category driven by its Monster Energy brand. This is likely to continue throughout 2023.
Marriott (MAR) Likely to Gain From Robust Expansion Efforts
The Zacks analyst believes that Marriott's efforts to expand its footprint and improving demand bode well. At the end of first-quarter 2023, Marriott's development pipeline totaled 3,060 hotels.
Strong Demand & Higher Prices Aid Carpenter Technology (CRS)
Per the Zacks analyst, Carpenter Technology is gaining from strong demand across its end-use markets. Higher prices and the company's efforts to preserve liquidity are also driving growth.
New Downgrades
Heavy Dependence on Large Customers to Hurt Liberty (LBRT)
The Zacks analyst believes that with top four customers contributing some 40% to Liberty Energy's revenues, it is susceptible to financial strain from the potential loss of one of these key clients.
Dismal Comps Performance Hurts Signet's (SIG) Top Line
Per the Zacks analyst, Signet has been reeling under soft demand in jewelry category. As a result, comps declined 13.9% thus hurting the top line performance in Q1.
Soft Office Demand, High Interest Rates Hurt Vornado (VNO)
Per the Zacks analyst, a choppy United States office market and a high interest rate environment are expected to weigh on Vornado's growth in the near term.
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
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
Cigna Group (CI) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : 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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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Verizon (VZ) Rides on Wireless Taction, Customer Additions Amgen (AMGN) Rapidly Advancing Pipeline Development Featured Reports Strategic Acquisitions Aid Schwab (SCHW) Amid Cost Concerns Per the Zacks analyst, while Schwab's inorganic growth initiatives & other revenue diversification efforts will aid profits, it might lead to higher costs, thus hurting the bottom line to an extent. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Verizon Communications Inc. (VZ) and Amgen Inc. (AMGN). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Verizon (VZ) Rides on Wireless Taction, Customer Additions Amgen (AMGN) Rapidly Advancing Pipeline Development Featured Reports Strategic Acquisitions Aid Schwab (SCHW) Amid Cost Concerns Per the Zacks analyst, while Schwab's inorganic growth initiatives & other revenue diversification efforts will aid profits, it might lead to higher costs, thus hurting the bottom line to an extent. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Verizon Communications Inc. (VZ) and Amgen Inc. (AMGN).
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Verizon (VZ) Rides on Wireless Taction, Customer Additions Amgen (AMGN) Rapidly Advancing Pipeline Development Featured Reports Strategic Acquisitions Aid Schwab (SCHW) Amid Cost Concerns Per the Zacks analyst, while Schwab's inorganic growth initiatives & other revenue diversification efforts will aid profits, it might lead to higher costs, thus hurting the bottom line to an extent. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Verizon Communications Inc. (VZ) and Amgen Inc. (AMGN).
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Verizon (VZ) Rides on Wireless Taction, Customer Additions Amgen (AMGN) Rapidly Advancing Pipeline Development Featured Reports Strategic Acquisitions Aid Schwab (SCHW) Amid Cost Concerns Per the Zacks analyst, while Schwab's inorganic growth initiatives & other revenue diversification efforts will aid profits, it might lead to higher costs, thus hurting the bottom line to an extent. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Verizon Communications Inc. (VZ) and Amgen Inc. (AMGN). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report To read this article on Zacks.com click here.
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15050.0
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2023-07-03 00:00:00 UTC
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Technology Sector Update for 07/03/2023: AAPL, MSFT, MCHP
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-07-03-2023%3A-aapl-msft-mchp
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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) decreasing 0.4% and the Philadelphia Semiconductor index up 0.3%.
In company news, Apple (AAPL) is slashing its production target for the Vision Pro headset due to manufacturing issues for the complex headset design, the Financial Times reported. Apple shares were down 0.9%.
Microsoft (MSFT) is facing the potential launch of a formal European Commission probe after a stall in discussions over some remedies the company offered, Reuters reported Monday. Microsoft shares were shedding 0.9%.
Microchip Technology (MCHP) said it is planning a multi-year initiative to invest about $300 million to expand its operations in India. Microchip was up 0.6%.
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 company news, Apple (AAPL) is slashing its production target for the Vision Pro headset due to manufacturing issues for the complex headset design, the Financial Times reported. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.4% and the Philadelphia Semiconductor index up 0.3%. Microsoft (MSFT) is facing the potential launch of a formal European Commission probe after a stall in discussions over some remedies the company offered, Reuters reported Monday.
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In company news, Apple (AAPL) is slashing its production target for the Vision Pro headset due to manufacturing issues for the complex headset design, the Financial Times reported. Apple shares were down 0.9%. Microsoft shares were shedding 0.9%.
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In company news, Apple (AAPL) is slashing its production target for the Vision Pro headset due to manufacturing issues for the complex headset design, the Financial Times reported. Microsoft (MSFT) is facing the potential launch of a formal European Commission probe after a stall in discussions over some remedies the company offered, Reuters reported Monday. Microchip Technology (MCHP) said it is planning a multi-year initiative to invest about $300 million to expand its operations in India.
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In company news, Apple (AAPL) is slashing its production target for the Vision Pro headset due to manufacturing issues for the complex headset design, the Financial Times reported. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.4% and the Philadelphia Semiconductor index up 0.3%. Apple shares were down 0.9%.
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15051.0
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2023-07-03 00:00:00 UTC
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GLOBAL MARKETS-Stocks make little progress with Treasury yields choppy in holiday-shortened session
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-make-little-progress-with-treasury-yields-choppy-in-holiday
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By Sinéad Carew
NEW YORK, July 3 (Reuters) - Wall Street stock indexes were virtually unchanged on Monday while Treasury yields were higher after falling earlier as investors eyed a mixed bag of economic data ahead of the second-quarter earnings season and managed uncertainty around central bank policy.
A widely watched section of the U.S. Treasury yield curve hit its deepest inversion since the high inflation era of Fed Chairman Paul Volcker, reflecting financial markets' concerns that an extended Federal Reserve rate hiking cycle will tip the United States into recession.
U.S. manufacturing slumped further in June to levels last seen when the economy was reeling from the initial wave of the COVID-19 pandemic, according to a survey on Monday that also showed price pressures at the factory gate deflating. However, U.S. construction spending rose more than expected in May as a severe shortage of houses boosted single-family homebuilding.
U.S. data on Friday, which hinted towards cooling inflation, helped bolster gains in the tech sector and underpinned sentiment in world stocks. This saw the tech-heavy Nasdaq on Friday make its biggest first-half gain in 40 years. Apple AAPL.O closed with a $3 trillion market valuation for the first time.
"The trading you see today is a mix of some people speculating that the previous six-month worst performers will catch up and others speculating that the leaders in the first half will continue to outperform," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
"We could be in for a volatile month of July because we're not sure of the direction of the economy and Fed policy over the next few months and corporate earnings starting to come out in a couple of weeks."
The Dow Jones Industrial Average .DJI rose 46.11 points, or 0.13%, to 34,453.71, the S&P 500 .SPX gained 1.75 points, or 0.04%, to 4,452.13 and the Nasdaq Composite .IXIC dropped 7.26 points, or 0.05%, to 13,780.66.
The pan-European STOXX 600 index .STOXX lost 0.21% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.29%.
Emerging market stocks .MSCIEF rose 1.59%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.49% higher, while Japan's Nikkei .N225 rose 1.70%.
U.S. Treasury yieldswere last up but lost ground earlier after the economic data showed the manufacturing sector continues to struggle.
Benchmark 10-year notes US10YT=RR were up 2.6 basis points to 3.845%, from 3.819% late on Friday. The 30-year bond US30YT=RR was up 1 basis points to yield 3.8641%. The 2-year note US2YT=RR was up 4 basis points to yield 4.917%.
The dollar index =USD fell 0.029%, with the euro EUR= up 0.05% to $1.0915.
The Japanese yen weakened 0.13% versus the greenback at 144.51 per dollar, while Sterling GBP= was last trading at $1.2692, down 0.09% on the day.
Earlier, Japan's Nikkei had closed at its highest level in 33 years. A Bank of Japan survey showed business sentiment improved in the second quarter, while the Caixin manufacturing survey dipped to 50.5, from 50.9 in May, showing a slowdown in China's factory activity. That slightly beat market forecasts, but underlined the weakening economic trend.
Oil rose on Monday after top exporters Saudi Arabia and Russia announced supply cuts for August, overshadowing concern over a global economic slowdown and the potential for further increases to U.S. interest rates.
U.S. crude CLc1 recently rose 0.5% to $70.99 per barrel and Brent LCOc1 was at $75.81, up 0.53% on the day.
Gold prices advanced slightly on Monday as weaker economic readings cast doubts over whether the Federal Reserve would stick to its hawkish policy outlook.
Spot gold XAU= added 0.4% to $1,926.49 an ounce. U.S. gold futures GCc1 gained 0.29% to $1,926.60 an ounce.
Global FX performance http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
(Reporting by Sinéad Carew in New York; Additional reporting by Dhara Ranasinghe in London, Wayne Cole in Sydney, and Karin Strohecker and Amanda Cooper in London; Editing by David Evans, Mark Potter and Andrea Ricci)
((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 closed with a $3 trillion market valuation for the first time. By Sinéad Carew NEW YORK, July 3 (Reuters) - Wall Street stock indexes were virtually unchanged on Monday while Treasury yields were higher after falling earlier as investors eyed a mixed bag of economic data ahead of the second-quarter earnings season and managed uncertainty around central bank policy. A widely watched section of the U.S. Treasury yield curve hit its deepest inversion since the high inflation era of Fed Chairman Paul Volcker, reflecting financial markets' concerns that an extended Federal Reserve rate hiking cycle will tip the United States into recession.
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Apple AAPL.O closed with a $3 trillion market valuation for the first time. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.49% higher, while Japan's Nikkei .N225 rose 1.70%. U.S. Treasury yieldswere last up but lost ground earlier after the economic data showed the manufacturing sector continues to struggle.
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Apple AAPL.O closed with a $3 trillion market valuation for the first time. By Sinéad Carew NEW YORK, July 3 (Reuters) - Wall Street stock indexes were virtually unchanged on Monday while Treasury yields were higher after falling earlier as investors eyed a mixed bag of economic data ahead of the second-quarter earnings season and managed uncertainty around central bank policy. The Dow Jones Industrial Average .DJI rose 46.11 points, or 0.13%, to 34,453.71, the S&P 500 .SPX gained 1.75 points, or 0.04%, to 4,452.13 and the Nasdaq Composite .IXIC dropped 7.26 points, or 0.05%, to 13,780.66.
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Apple AAPL.O closed with a $3 trillion market valuation for the first time. U.S. Treasury yieldswere last up but lost ground earlier after the economic data showed the manufacturing sector continues to struggle. The Japanese yen weakened 0.13% versus the greenback at 144.51 per dollar, while Sterling GBP= was last trading at $1.2692, down 0.09% on the day.
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15052.0
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2023-07-03 00:00:00 UTC
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Here's What to Expect for the Second Half of 2023
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AAPL
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https://www.nasdaq.com/articles/heres-what-to-expect-for-the-second-half-of-2023
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nan
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Declining inflation. A Fed that has pumped the breaks. Artificial intelligence.
These bullish tailwinds helped to manifest one of the best first halves for stocks in recent memory. In fact, the Nasdaq generated an incredible 31.73% run over the last six months, the tech-heavy index’s best first half to a year dating back to 1983. The S&P 500 finished the first half with an impressive 15.91% gain, while the Dow lagged but is currently eyeing a bullish breakout.
This past Friday morning’s release of May’s personal consumption expenditures (PCE) data, the Fed’s preferred inflation gauge, showed prices rose 3.8% on a year-over-year basis. This was down from 4.4% in April and marked the lowest rate since April 2021. For the month, prices ticked up just 0.1%, below the 0.2% projection.
While the market is currently pricing in a roughly 88% chance of another 25-basis point hike later this month, our analysis points to a higher likelihood of another pause. Inflation measures are projected to have declined further in June, which would increase the odds of more market strength in July given the lagging data. But there’s other reasons for the bulls to cheer during this hot summer month.
Reasons to Expect More Strength Ahead
Stocks have risen in 9 out of the last 10 years in July, climbing an average of 3.3%. In fact, no month sports a better average over the last decade than July. The positive seasonality along with the start of the Q2 earnings season have the potential to extend this year’s rally even further.
As we move past July and into the remainder of the year, the picture remains bright. Since 1950, the S&P 500 has followed up a positive first half with an average gain of 6.0%. Even better, when first half gains were 10% or higher (like this year), the index delivered average gains of 7.7% in the second half and was positive in 82% of the occurrences with these characteristics.
Image Source: Zacks Investment Research
These gains won’t be achieved without their fair share of volatility. The average drawdown during second halves given a positive first half has been -9%. First halves that have exceeded 10% (like this year) have historically led to slightly shallower second half drawdowns. As shown below, the average second half drawdown after a greater than (or equal to) 10% first half performance is -8.8%.
Image Source: Zacks Investment Research
It’s important to point out that historical statistics are just a guide. Markets never repeat themselves exactly, but they often rhyme. Even during strong bull markets, it’s never a straight line up. There’s always volatility along the way, and even if the second half goes well, it’s reasonable to expect a correction somewhere in the neighborhood of 8-10%.
Confirmation of a New Bull Market
The S&P 500 re-entered bull market territory in early June, as the blue-chip index took 165 trading days to advance 20% off the October ’22 bear market low. What can we expect moving forward?
Forward returns after a bull market has been confirmed have also been historically appealing. Twelve months after a bull market has officially started (based on the 20% threshold), the S&P 500 has delivered an average gain 18%.
Zooming out further, bull markets have averaged 39.4 months dating back to 1929, and have produced an average gain of 130.1%. The truth is that bull markets are built on the shoulders of bears, and bear markets should be viewed as great buying opportunities. Instead, normally panic ensues, and investors tend to sell at major turning points. Rather, the larger drawdowns should be used for new entries or additional buying points.
Stocks to Watch
Nvidia NVDA rebounded 3.6% on Friday and edged higher Monday morning. Nvidia stock shrugged off reports from earlier in the week that the Biden administration will expand its chip export curbs to China. Other semiconductor stocks followed suit. NVDA is a Zacks Rank #1 (Strong Buy) and remains in a robust uptrend.
Apple AAPL finished the week as the first U.S. company valued at $3 trillion. It’s been an incredible run for Apple stock, with shares climbing nearly 50% on the year. AAPL is currently a Zacks Rank #3 (Hold) and is trading at all-time highs.
Tesla TSLA jumped over 6% Monday morning after second-quarter deliveries surged to 466,140, surpassing the Q1 record of 422,875. The figure easily beat the Q2 estimate of 445,000. Tesla has received criticism for recent price cuts, but the strategy appears to be working well. TSLA is a Zacks Rank #3 (Hold) and has witnessed its shares rise over 128% so far this year.
This market is clearly surprising to the upside. Positive seasonality in July along with the start of the second-quarter earnings season are likely to provide the bulls with more reasons to cheer. From all of us here at Zacks, we wish you a safe and happy July 4th.
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
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : 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 finished the week as the first U.S. company valued at $3 trillion. AAPL is currently a Zacks Rank #3 (Hold) and is trading at all-time highs. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL finished the week as the first U.S. company valued at $3 trillion. AAPL is currently a Zacks Rank #3 (Hold) and is trading at all-time highs.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL finished the week as the first U.S. company valued at $3 trillion. AAPL is currently a Zacks Rank #3 (Hold) and is trading at all-time highs.
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Apple AAPL finished the week as the first U.S. company valued at $3 trillion. AAPL is currently a Zacks Rank #3 (Hold) and is trading at all-time highs. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here.
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15053.0
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2023-07-03 00:00:00 UTC
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US STOCKS-Nasdaq kicks off third quarter on upbeat note as Tesla extends rally
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-kicks-off-third-quarter-on-upbeat-note-as-tesla-extends-rally
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By Bansari Mayur Kamdar and Johann M Cherian
July 3 (Reuters) - The tech-heavy Nasdaq started the new quarter on a firm footing on Monday, as Tesla shares rose after the electric-vehicle maker reported record second-quarter vehicle deliveries.
TeslaTSLA.O gained 7.4% to hit a nine-month high, a day after its car deliveries topped market estimates on the back of incentives and steeper discounts.
"Tesla's sales certainly caught some people by surprise in terms of their ability to continue to drive sales by price cuts," said Art Hogan, chief market strategist at B Riley Wealth.
Shares of other vehicle makers including General Motors GM.N and Ford Motor F.N added over 1% each, while EV rival Rivian Automotive RIVN.O climbed 14.4% after it also beat Wall Street expectations for quarterly deliveries.
The consumer discretionary sector .SPLRCD that includes Tesla rose 1.5%, leading gains among the top 11 S&P 500 sectors, while healthcare stocks .SPXHC declined.
All three major U.S. indexes ended the first half of the year on a positive note on Friday, with the Nasdaq Composite.IXIC rallying 31.7% to its sharpest first-half rise in four decades, shrugging off concerns over a recession and a banking crisis.
Traders awaited the minutes of the Federal Reserve's last policy meeting for cues on the central bank's monetary tightening path. They are scheduled to be released on Wednesday.
Meanwhile, a closely watched gap between the yields on two- and 10-year Treasury notes US2US10=RR hit its deepest inversion in over four-decades, signaling that financial markets see the current Fed tightening cycle eventually tipping the U.S. into a recession. US/
Megacap companies including Apple AAPL.O, Microsoft MSFT.O, and Alphabet GOOGL.O slipped between 0.1% and 0.5%, as worries over higher borrowing costs eating into their earnings soured investor sentiment.
At 10:15 a.m. ET, the Dow Jones Industrial Average .DJI was down 39.04 points, or 0.11%, at 34,368.56, the S&P 500 .SPX was up 0.32 points, or 0.01%, at 4,450.70, and the Nasdaq Composite .IXIC was up 30.79 points, or 0.22%, at 13,818.71.
U.S. manufacturing slumped further in June, according to a survey, reaching levels last seen when the economy was reeling from the initial wave of the COVID-19 pandemic in May 2020.
Trading volumes are expected to be thin with markets open for just half the day, ahead of the Independence Day holiday on Tuesday.
Investors also awaited surveys on U.S. services, job openings data as well as the June payrolls report later in the week.
U.S.-listed shares of Chinese carmakers Xpeng XPEV.N, Li Auto LI.O and Nio NIO.N rose between 4.5% and 5.6% after the companies reported a surge in June vehicle deliveries compared with a year earlier.
Fidelity National Information Services FIS.N added 5.4% as buyout groups weighed bids for a majority stake in Worldpay, co-owned by the financial services firm, according to a Financial Times report.
Advancing issues outnumbered decliners by a 2.02-to-1 ratio on the NYSE and a 1.53-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and no new low, while the Nasdaq recorded 42 new highs and 33 new lows.
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Vinay Dwivedi)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar;))
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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US/ Megacap companies including Apple AAPL.O, Microsoft MSFT.O, and Alphabet GOOGL.O slipped between 0.1% and 0.5%, as worries over higher borrowing costs eating into their earnings soured investor sentiment. By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - The tech-heavy Nasdaq started the new quarter on a firm footing on Monday, as Tesla shares rose after the electric-vehicle maker reported record second-quarter vehicle deliveries. All three major U.S. indexes ended the first half of the year on a positive note on Friday, with the Nasdaq Composite.IXIC rallying 31.7% to its sharpest first-half rise in four decades, shrugging off concerns over a recession and a banking crisis.
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US/ Megacap companies including Apple AAPL.O, Microsoft MSFT.O, and Alphabet GOOGL.O slipped between 0.1% and 0.5%, as worries over higher borrowing costs eating into their earnings soured investor sentiment. By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - The tech-heavy Nasdaq started the new quarter on a firm footing on Monday, as Tesla shares rose after the electric-vehicle maker reported record second-quarter vehicle deliveries. Shares of other vehicle makers including General Motors GM.N and Ford Motor F.N added over 1% each, while EV rival Rivian Automotive RIVN.O climbed 14.4% after it also beat Wall Street expectations for quarterly deliveries.
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US/ Megacap companies including Apple AAPL.O, Microsoft MSFT.O, and Alphabet GOOGL.O slipped between 0.1% and 0.5%, as worries over higher borrowing costs eating into their earnings soured investor sentiment. By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - The tech-heavy Nasdaq started the new quarter on a firm footing on Monday, as Tesla shares rose after the electric-vehicle maker reported record second-quarter vehicle deliveries. U.S.-listed shares of Chinese carmakers Xpeng XPEV.N, Li Auto LI.O and Nio NIO.N rose between 4.5% and 5.6% after the companies reported a surge in June vehicle deliveries compared with a year earlier.
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US/ Megacap companies including Apple AAPL.O, Microsoft MSFT.O, and Alphabet GOOGL.O slipped between 0.1% and 0.5%, as worries over higher borrowing costs eating into their earnings soured investor sentiment. By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - The tech-heavy Nasdaq started the new quarter on a firm footing on Monday, as Tesla shares rose after the electric-vehicle maker reported record second-quarter vehicle deliveries. TeslaTSLA.O gained 7.4% to hit a nine-month high, a day after its car deliveries topped market estimates on the back of incentives and steeper discounts.
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15054.0
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2023-07-03 00:00:00 UTC
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Take a Bite of These ETFs on Historic Apple's $3T Valuation
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AAPL
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https://www.nasdaq.com/articles/take-a-bite-of-these-etfs-on-historic-apples-%243t-valuation
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nan
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nan
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Apple Inc. AAPL made Wall Street history as the first company to reach a market capitalization of $3 trillion at the close on Jun 30, indicating the latest sign of the big tech unstoppable rally. This was the second time Apple's market value peaked above $3 trillion, with the first occurrence being on Jan 3, 2022, during intraday trading, but it closed the session just below that mark. The stock has jumped 49% so far this year.
Investors could capitalize on the tech giant’s strength with the help of ETFs having the largest allocation to it. Funds such as 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) (see: all the Technology ETFs here).
Signs of improving inflation and bets that the iPhone maker will successfully expand into new markets contributed to the surge. A report showed that an inflation index that the Fed closely monitors had dropped to its lowest level since April 2021, leading to expectations that the pace of interest rate hikes may slow down. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for further initiatives when interest rates are low. This has also contributed to the rise in Apple's stock.
Investors have flocked to the iPhone maker’s steady revenues and massive cash flows, reinforcing the reputation as a safe investment in a time of global economic uncertainty. This is especially true as the tech titan reported solid second-quarter fiscal 2023 results by beating estimates on both earnings and revenues, powered by a surprise boost in iPhone sales. Further, the company's management is known for being shareholder-friendly and buying back shares, which adds to the appeal.
The share price of Apple is further boosted by the launch of its augmented-reality headset on Jun 5. Moreover, Apple's entry into India’s market is expected to open new opportunities for the company, and a significant number of handsets due for an upgrade are also expected to provide a major boost (read: Apple ETFs in Focus Post Slew of Product Launch).
The latest multibillion-dollar deal with Broadcom (AVGO) to make 5G radio frequency components and wireless chips would add more strength to the Apple stock. 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 32.37 compared with Amazon’s (AMZN) 83.37 times, Netflix’s (NFLX) 39.14 times and Microsoft’s (MSFT) 35.31 times.
ETFs to 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 23.3% share. Technology Select Sector SPDR Fund has key holdings in software, semiconductors & semiconductor equipment, and technology hardware, storage & peripherals.
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $49 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 $52.7 billion in its asset base and provides exposure to 325 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 21.7% share. Systems software, technology hardware storage & peripheral, semiconductors and application software are the top four sectors (read: Apple to Hit $4-Tn Market Cap in 2024? ETFs in Focus).
Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 482,000 shares.
MSCI Information Technology Index ETF (FTEC)
MSCI Information Technology Index ETF is home to 360 technology stocks with AUM of $7 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 229,000 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 136 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 19.2% of the assets.
iShares Dow Jones US Technology ETF has AUM of $12.6 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges 528,000 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 12.6% share (read: Nasdaq Celebrates Best First Half in 40 Years: ETFs in Focus).
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $197.5 billion and an average daily volume of 49 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
Apple Inc. (AAPL) : 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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Apple Inc. AAPL made Wall Street history as the first company to reach a market capitalization of $3 trillion at the close on Jun 30, indicating the latest sign of the big tech unstoppable rally. Click to get this free report Apple Inc. (AAPL) : 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. A report showed that an inflation index that the Fed closely monitors had dropped to its lowest level since April 2021, leading to expectations that the pace of interest rate hikes may slow down.
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Click to get this free report Apple Inc. (AAPL) : 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 Inc. AAPL made Wall Street history as the first company to reach a market capitalization of $3 trillion at the close on Jun 30, indicating the latest sign of the big tech unstoppable rally. Funds such as 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) (see: all the Technology ETFs here).
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Click to get this free report Apple Inc. (AAPL) : 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 Inc. AAPL made Wall Street history as the first company to reach a market capitalization of $3 trillion at the close on Jun 30, indicating the latest sign of the big tech unstoppable rally. Funds such as 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) (see: all the Technology ETFs here).
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Click to get this free report Apple Inc. (AAPL) : 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 Inc. AAPL made Wall Street history as the first company to reach a market capitalization of $3 trillion at the close on Jun 30, indicating the latest sign of the big tech unstoppable rally. The stock has jumped 49% so far this year.
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2023-07-03 00:00:00 UTC
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Technology Sector Update for 07/03/2023: NOK, AAPL, DOX, GTLB, XLK, SOXX
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-07-03-2023%3A-nok-aapl-dox-gtlb-xlk-soxx
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Technology stocks were mixed pre-bell Monday as the Technology Select Sector SPDR Fund (XLK) was 0.1% lower while the iShares Semiconductor ETF (SOXX) was recently up 0.39%.
Nokia (NOK) was 2% higher after saying it signed a long-term patent cross-license agreement with Apple (AAPL) that covers the former's inventions in 5G and other technologies.
Amdocs (DOX) was flat after saying it completed the acquisition of TEOCO's service assurance business and expects the impact on its non-GAAP diluted earnings per share will be "neutral" in the full fiscal years 2023 and 2024.
GitLab (GTLB) said it has appointed Erin Mannix as its chief accounting officer. GitLab was marginally gaining recently.
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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Nokia (NOK) was 2% higher after saying it signed a long-term patent cross-license agreement with Apple (AAPL) that covers the former's inventions in 5G and other technologies. Amdocs (DOX) was flat after saying it completed the acquisition of TEOCO's service assurance business and expects the impact on its non-GAAP diluted earnings per share will be "neutral" in the full fiscal years 2023 and 2024. GitLab (GTLB) said it has appointed Erin Mannix as its chief accounting officer.
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Nokia (NOK) was 2% higher after saying it signed a long-term patent cross-license agreement with Apple (AAPL) that covers the former's inventions in 5G and other technologies. Technology stocks were mixed pre-bell Monday as the Technology Select Sector SPDR Fund (XLK) was 0.1% lower while the iShares Semiconductor ETF (SOXX) was recently up 0.39%. GitLab was marginally gaining recently.
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Nokia (NOK) was 2% higher after saying it signed a long-term patent cross-license agreement with Apple (AAPL) that covers the former's inventions in 5G and other technologies. Technology stocks were mixed pre-bell Monday as the Technology Select Sector SPDR Fund (XLK) was 0.1% lower while the iShares Semiconductor ETF (SOXX) was recently up 0.39%. Amdocs (DOX) was flat after saying it completed the acquisition of TEOCO's service assurance business and expects the impact on its non-GAAP diluted earnings per share will be "neutral" in the full fiscal years 2023 and 2024.
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Nokia (NOK) was 2% higher after saying it signed a long-term patent cross-license agreement with Apple (AAPL) that covers the former's inventions in 5G and other technologies. Technology stocks were mixed pre-bell Monday as the Technology Select Sector SPDR Fund (XLK) was 0.1% lower while the iShares Semiconductor ETF (SOXX) was recently up 0.39%. Amdocs (DOX) was flat after saying it completed the acquisition of TEOCO's service assurance business and expects the impact on its non-GAAP diluted earnings per share will be "neutral" in the full fiscal years 2023 and 2024.
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2023-07-03 00:00:00 UTC
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Apple to ask US Supreme Court to undo App Store order in Epic Games case
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AAPL
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https://www.nasdaq.com/articles/apple-to-ask-us-supreme-court-to-undo-app-store-order-in-epic-games-case
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By Mike Scarcella
WASHINGTON, July 3 (Reuters) - Apple AAPL.O said on Monday it will ask the U.S. Supreme Court to hear its challenge to a judge's order in an antitrust case brought by "Fortnite" maker Epic Games that could force the iPhone maker to change payment practices in its App Store.
Apple said in a court filing it will ask the justices to take up its appeal of a ruling on Friday by the San Francisco-based 9th U.S. Circuit Court of Appeals that kept in place most of the order issued in 2021 by U.S. District Judge Yvonne Gonzalez Rogers.
The judge's order said Apple could not prohibit developers from providing links and buttons to payment options in their apps that take consumers outside of the App Store - a step that could reduce sales commissions paid to Apple.
Epic sued Apple in 2020, challenging the fee Apple imposes on in-app payments. Epic was seeking an injunction to stop Apple's practice, not monetary damages. Rogers ruled against most of Epic's claims, though did issue the order that Apple is contesting.
In appeals to the 9th Circuit, Epic challenged key parts of the judge's ruling that favored Apple, while Apple challenged the order concerning the App Store. The 9th Circuit in April upheld most of the judge's action. On Friday, the 9th Circuit rejected petitions from Apple and Epic urging the court to revisit its April decision.
Epic Games also can ask the Supreme Court to hear its appeal.
Epic in its appeal to the 9th Circuit had sought to revive its antitrust claims against Apple over its restrictive app distribution and payment services.
Apple's attorneys in Monday's filing said the 9th Circuit reached too far in issuing a nationwide injunction against Apple alleging that it violated a California state unfair competition law.
Apple said its petition in the Supreme Court that it will raise "far-reaching and important" questions about the power of judges to issue broad injunctions.
The case is Epic Games Inc v. Apple Inc, 9th U.S. Circuit Court of Appeals, No. 21-16506.
Apple, Epic ask US appeals court to reconsider its antitrust ruling
Apple cannot ban links to outside App Store payments, U.S. appeals court says
(Reporting by Mike Scarcella; Editing by Leigh Jones and Will Dunham)
((Mike.Scarcella@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 Mike Scarcella WASHINGTON, July 3 (Reuters) - Apple AAPL.O said on Monday it will ask the U.S. Supreme Court to hear its challenge to a judge's order in an antitrust case brought by "Fortnite" maker Epic Games that could force the iPhone maker to change payment practices in its App Store. Epic in its appeal to the 9th Circuit had sought to revive its antitrust claims against Apple over its restrictive app distribution and payment services. Apple said its petition in the Supreme Court that it will raise "far-reaching and important" questions about the power of judges to issue broad injunctions.
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By Mike Scarcella WASHINGTON, July 3 (Reuters) - Apple AAPL.O said on Monday it will ask the U.S. Supreme Court to hear its challenge to a judge's order in an antitrust case brought by "Fortnite" maker Epic Games that could force the iPhone maker to change payment practices in its App Store. In appeals to the 9th Circuit, Epic challenged key parts of the judge's ruling that favored Apple, while Apple challenged the order concerning the App Store. Apple, Epic ask US appeals court to reconsider its antitrust ruling Apple cannot ban links to outside App Store payments, U.S. appeals court says (Reporting by Mike Scarcella; Editing by Leigh Jones and Will Dunham) ((Mike.Scarcella@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 Mike Scarcella WASHINGTON, July 3 (Reuters) - Apple AAPL.O said on Monday it will ask the U.S. Supreme Court to hear its challenge to a judge's order in an antitrust case brought by "Fortnite" maker Epic Games that could force the iPhone maker to change payment practices in its App Store. In appeals to the 9th Circuit, Epic challenged key parts of the judge's ruling that favored Apple, while Apple challenged the order concerning the App Store. Apple, Epic ask US appeals court to reconsider its antitrust ruling Apple cannot ban links to outside App Store payments, U.S. appeals court says (Reporting by Mike Scarcella; Editing by Leigh Jones and Will Dunham) ((Mike.Scarcella@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 Mike Scarcella WASHINGTON, July 3 (Reuters) - Apple AAPL.O said on Monday it will ask the U.S. Supreme Court to hear its challenge to a judge's order in an antitrust case brought by "Fortnite" maker Epic Games that could force the iPhone maker to change payment practices in its App Store. In appeals to the 9th Circuit, Epic challenged key parts of the judge's ruling that favored Apple, while Apple challenged the order concerning the App Store. On Friday, the 9th Circuit rejected petitions from Apple and Epic urging the court to revisit its April decision.
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2023-07-03 00:00:00 UTC
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US STOCKS-Wall St set for subdued open; Tesla extends rally
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-subdued-open-tesla-extends-rally
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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.
Tesla jumps on upbeat Q2 vehicle deliveries
Chinese automakers climb on strong June sales
Oil stocks up as Saudi Arabia, Russia announce supply cuts
U.S. 2yr/10yr yield curve hits deepest inversion in 42 years
Futures: Dow down 0.22%, S&P slips 0.09%, Nasdaq flat
Updated at 08:40 a.m. ET/ 1240 GMT
By Bansari Mayur Kamdar and Johann M Cherian
July 3 (Reuters) - U.S. stock indexes were set to kick off the new quarter on a lackluster note on Monday, while Tesla was on course to extend gains after reporting record second-quarter vehicle deliveries.
Electric-vehicle maker TeslaTSLA.O gained 6.0% in premarket trading, a day after its car deliveries topped market estimates on the back of incentives and steeper discounts.
All three major U.S. indexes ended the first half of the year on a positive note on Friday, with the Nasdaq Composite.IXIC rallying 31.7% to its sharpest first-half rise in four decades, in the face of concerns over a recession and a banking crisis.
"Technology will still provide the leadership in terms of earnings into the second half of the year given the enthusiasm about artificial intelligence, but there will be mixed results in other sectors," said Peter Andersen, founder of Andersen Capital Management.
Traders awaited the minutes of the Federal Reserve's last policy meeting for cues on the central bank's monetary tightening path. They are scheduled to be released on Wednesday.
Meanwhile, a closely watched gap between the yields on two- and 10-year Treasury notes US2US10=RR hit its deepest inversion in over four-decades, signaling that financial markets see the current Fed tightening cycle eventually tipping the U.S. into a recession. US/
Megacap companies including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Alphabet GOOGL.O slipped between 0.1% and 0.4%, as worries over higher borrowing costs eating into their earnings soured investor sentiment.
At 08:40 a.m. ET, Dow e-minis 1YMcv1 were down 77 points, or 0.22%, S&P 500 e-minis EScv1 were down 4.25 points, or 0.09%, and Nasdaq 100 e-minis NQcv1 were up 6 points, or 0.04%.
Trading volumes are expected to be thin with markets open for just half the day, ahead of the Independence Day holiday on Tuesday.
Investors also awaited surveys on U.S. manufacturing and services, job openings data as well as the June payrolls report.
U.S.-listed shares of Chinese carmakers Xpeng XPEV.N, Li Auto LI.O and Nio NIO.N rose between 4.3% and 6.8% after the companies reported a surge in June vehicle deliveries compared with a year earlier.
Oil majors Chevron CVX.N and Exxon Mobil XOM.N gained 0.7% and 0.6%, respectively, tracking a rise in oil prices after top exporters Saudi Arabia and Russia announced supply cuts for August. O/R
Fidelity National Information Services FIS.N added 9.7% as buyout groups weighed bids for a majority stake in Worldpay, co-owned by the financial services firm, according to a Financial Times report.
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Vinay Dwivedi)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar;))
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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US/ Megacap companies including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Alphabet GOOGL.O slipped between 0.1% and 0.4%, as worries over higher borrowing costs eating into their earnings soured investor sentiment. Tesla jumps on upbeat Q2 vehicle deliveries Chinese automakers climb on strong June sales Oil stocks up as Saudi Arabia, Russia announce supply cuts U.S. 2yr/10yr yield curve hits deepest inversion in 42 years Futures: Dow down 0.22%, S&P slips 0.09%, Nasdaq flat Updated at 08:40 a.m. ET/ 1240 GMT By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - U.S. stock indexes were set to kick off the new quarter on a lackluster note on Monday, while Tesla was on course to extend gains after reporting record second-quarter vehicle deliveries. All three major U.S. indexes ended the first half of the year on a positive note on Friday, with the Nasdaq Composite.IXIC rallying 31.7% to its sharpest first-half rise in four decades, in the face of concerns over a recession and a banking crisis.
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US/ Megacap companies including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Alphabet GOOGL.O slipped between 0.1% and 0.4%, as worries over higher borrowing costs eating into their earnings soured investor sentiment. Tesla jumps on upbeat Q2 vehicle deliveries Chinese automakers climb on strong June sales Oil stocks up as Saudi Arabia, Russia announce supply cuts U.S. 2yr/10yr yield curve hits deepest inversion in 42 years Futures: Dow down 0.22%, S&P slips 0.09%, Nasdaq flat Updated at 08:40 a.m. ET/ 1240 GMT By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - U.S. stock indexes were set to kick off the new quarter on a lackluster note on Monday, while Tesla was on course to extend gains after reporting record second-quarter vehicle deliveries. Oil majors Chevron CVX.N and Exxon Mobil XOM.N gained 0.7% and 0.6%, respectively, tracking a rise in oil prices after top exporters Saudi Arabia and Russia announced supply cuts for August.
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US/ Megacap companies including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Alphabet GOOGL.O slipped between 0.1% and 0.4%, as worries over higher borrowing costs eating into their earnings soured investor sentiment. Tesla jumps on upbeat Q2 vehicle deliveries Chinese automakers climb on strong June sales Oil stocks up as Saudi Arabia, Russia announce supply cuts U.S. 2yr/10yr yield curve hits deepest inversion in 42 years Futures: Dow down 0.22%, S&P slips 0.09%, Nasdaq flat Updated at 08:40 a.m. ET/ 1240 GMT By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - U.S. stock indexes were set to kick off the new quarter on a lackluster note on Monday, while Tesla was on course to extend gains after reporting record second-quarter vehicle deliveries. All three major U.S. indexes ended the first half of the year on a positive note on Friday, with the Nasdaq Composite.IXIC rallying 31.7% to its sharpest first-half rise in four decades, in the face of concerns over a recession and a banking crisis.
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US/ Megacap companies including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Alphabet GOOGL.O slipped between 0.1% and 0.4%, as worries over higher borrowing costs eating into their earnings soured investor sentiment. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Tesla jumps on upbeat Q2 vehicle deliveries Chinese automakers climb on strong June sales Oil stocks up as Saudi Arabia, Russia announce supply cuts U.S. 2yr/10yr yield curve hits deepest inversion in 42 years Futures: Dow down 0.22%, S&P slips 0.09%, Nasdaq flat Updated at 08:40 a.m. ET/ 1240 GMT By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - U.S. stock indexes were set to kick off the new quarter on a lackluster note on Monday, while Tesla was on course to extend gains after reporting record second-quarter vehicle deliveries.
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2023-07-03 00:00:00 UTC
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Is iShares U.S. Equity Factor ETF (LRGF) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-u.s.-equity-factor-etf-lrgf-a-strong-etf-right-now-5
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The iShares U.S. Equity Factor ETF (LRGF) was launched on 04/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All 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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
LRGF is managed by Blackrock, and this fund has amassed over $1.35 billion, which makes it one of the largest ETFs in the Style Box - All Cap Value. LRGF, before fees and expenses, seeks to match the performance of the MSCI USA Diversified Multiple-Factor Index.
The STOXX U.S. Equity Factor Index composes of U.S. large and mid-capitalization stocks that have favourable exposure to target style factors subject to constraints.
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 LRGF are 0.08%, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.60%.
Sector Exposure and Top Holdings
ETFs offer 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.
LRGF's heaviest allocation is in the Information Technology sector, which is about 30.20% of the portfolio. Its Financials and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Its top 10 holdings account for approximately 25.07% of LRGF's total assets under management.
Performance and Risk
The ETF has added roughly 15.08% and was up about 19.45% so far this year and in the past one year (as of 07/03/2023), respectively. LRGF has traded between $36.22 and $44.56 during this last 52-week period.
The fund has a beta of 0.98 and standard deviation of 18.24% for the trailing three-year period, which makes LRGF a medium risk choice in this particular space. With about 315 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Equity Factor ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $8.11 billion in assets, iShares Core S&P U.S. Value ETF has $14.05 billion. DFAT has an expense ratio of 0.28% and IUSV 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 - All 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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iShares U.S. Equity Factor ETF (LRGF): 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 Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): 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 6.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares U.S. Equity Factor ETF (LRGF): 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 Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. The iShares U.S. Equity Factor ETF (LRGF) was launched on 04/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
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Click to get this free report iShares U.S. Equity Factor ETF (LRGF): 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 Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). 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.
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Click to get this free report iShares U.S. Equity Factor ETF (LRGF): 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 Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares U.S. Equity Factor ETF (LRGF) was launched on 04/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
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Click to get this free report iShares U.S. Equity Factor ETF (LRGF): 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 Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares U.S. Equity Factor ETF (LRGF) was launched on 04/28/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
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15059.0
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2023-07-03 00:00:00 UTC
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Apple forced to make major cuts to Vision Pro headset production plans - FT
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AAPL
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https://www.nasdaq.com/articles/apple-forced-to-make-major-cuts-to-vision-pro-headset-production-plans-ft
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nan
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nan
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July 3 (Reuters) - Apple AAPL.O has been forced to make major cuts to the production forecasts for its mixed-reality Vision Pro headset on complexity of the design and difficulties in production, the Financial Times reported on Monday, citing people familiar with the matter.
(Reporting by Gokul Pisharody in Bengaluru; Editing by Nivedita Bhattacharjee)
((Gokul.Pisharody@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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July 3 (Reuters) - Apple AAPL.O has been forced to make major cuts to the production forecasts for its mixed-reality Vision Pro headset on complexity of the design and difficulties in production, the Financial Times reported on Monday, citing people familiar with the matter. (Reporting by Gokul Pisharody in Bengaluru; Editing by Nivedita Bhattacharjee) ((Gokul.Pisharody@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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July 3 (Reuters) - Apple AAPL.O has been forced to make major cuts to the production forecasts for its mixed-reality Vision Pro headset on complexity of the design and difficulties in production, the Financial Times reported on Monday, citing people familiar with the matter. (Reporting by Gokul Pisharody in Bengaluru; Editing by Nivedita Bhattacharjee) ((Gokul.Pisharody@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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July 3 (Reuters) - Apple AAPL.O has been forced to make major cuts to the production forecasts for its mixed-reality Vision Pro headset on complexity of the design and difficulties in production, the Financial Times reported on Monday, citing people familiar with the matter. (Reporting by Gokul Pisharody in Bengaluru; Editing by Nivedita Bhattacharjee) ((Gokul.Pisharody@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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July 3 (Reuters) - Apple AAPL.O has been forced to make major cuts to the production forecasts for its mixed-reality Vision Pro headset on complexity of the design and difficulties in production, the Financial Times reported on Monday, citing people familiar with the matter. (Reporting by Gokul Pisharody in Bengaluru; Editing by Nivedita Bhattacharjee) ((Gokul.Pisharody@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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15060.0
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2023-07-03 00:00:00 UTC
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ANALYSIS-Apple's growing stock market heft poses dilemma for fund managers
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AAPL
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https://www.nasdaq.com/articles/analysis-apples-growing-stock-market-heft-poses-dilemma-for-fund-managers
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nan
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nan
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By Lewis Krauskopf
NEW YORK, July 3 (Reuters) - The massive rally in Apple's shares is forcing some fund managers to revisit a thorny dilemma: they may not own enough of the stock.
Apple’s share price has soared 49% so far this year, ballooning its weight in stock indexes to record levels and pushing its market capitalization over $3 trillion. The company’s weighting in the S&P 500 has swelled to 7.6%, the biggest of any one stock in the history of the benchmark index, according to S&P Dow Jones Indices.
That hefty weighting means moves in Apple’s shares have an outsized influence on index performance. Yet many investors hold allocations of Apple that are smaller than its relative weighting in indexes, whether it's due to the desire for portfolio flexibility, worries over owning too much of any one position and limitations imposed by the rules of their own funds.
If shares of Apple keep rallying, that could hurt the results of active fund managers, who strive to beat indexes such as the S&P 500 or Russell 1000.
The issue has taken on additional urgency this year, as the market’s gains are being led primarily by a handful of megacap companies such as Apple, Microsoft MSFT.O and Nvidia NVDA.O, whose shares have outperformed.
“If you’re an active manager, one of the issues is it’s hard to own that much of one name. You are taking on more and more risk," said Todd Sohn, technical strategist at Strategas.
“Because they are such heavy weights within the benchmarks, it becomes really challenging to outperform.”
UNDERALLOCATED
Of 418 U.S. broad market funds tracked by Morningstar, only 26 held a greater weight in Apple than the stock's weight in the S&P 500, according to their most recent regulatory filings.
The lower allocations to Apple and other stock market winners may be hurting their performance. Only 20% of actively managed mutual funds with broad U.S. market exposure have outperformed the S&P 500 year-to-date as of June 28, according to Robby Greengold, strategist at Morningstar.
Only 6% of active large-growth funds around in 2013 outperformed the category benchmark through 2022, the firm’s data showed.
Greenwood Capital, which has $1.4 billion in assets under management, counts Apple as one of its top five holdings, said chief investment officer Walter Todd. But risk management rules at the South Carolina firm prohibit putting more than 5% into any one stock; that means the firm is underweight Apple compared to the S&P 500, to which Greenwood funds benchmark their performance.
The firm likes Apple's stock fundamentals, so "it’s not that we are rooting for it to go down," Todd said. "We just think there are other names that have the opportunity to do better."
Apple's weighting in the S&P 500, for example, is bigger than the entire 37-stock consumer staples sector .SPLRCS, which was last at a weight of 6.7%.
In the MSCI All-Country index, a widely used benchmark for stocks globally, Apple's 4.7% weight is greater than that of all United Kingdom stocks combined, which account for 3.6%, according to DataTrek Research.
Some investors are happy to hold hefty positions in the stock.
Alex Morris, chief investment officer of F/m Investments, said its F/m Investments Large Cap Focused Fund IAFLX.O holds a 13% weight in Apple, slightly above the weight in the Russell 1000 growth index .RLG, which is the fund's benchmark.
“Fund managers at their own peril don’t hold Apple and a handful of stocks just like it at index weight or about index weight,” Morris said.
Whether Apple can maintain its outperformance remains to be seen.
Apple's forward price-to-earnings ratio at 29.5 times, is about twice its median P/E over the past decade, according to Refinitiv Datastream. Analysts' median price target for Apple shares is $190, according to Refinitiv data, 2% below the stock's closing price of $193.97 on Friday.
Peter Tuz, president of Chase Investment Counsel, which has about $340 million under management, said his firm sold about one third of its shares this year over concerns about its valuation. The stock is still his firm's fourth-largest holding, even though at 4% of the portfolio, it puts it underweight Apple versus the S&P 500.
"If you don’t own any and the stock does well, indeed as it has this year, you run the risk of lagging,” Tuz said.
Apple's growing weight in S&P 500 https://tmsnrt.rs/3NSXwSf
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Anna Driver)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
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 Lewis Krauskopf NEW YORK, July 3 (Reuters) - The massive rally in Apple's shares is forcing some fund managers to revisit a thorny dilemma: they may not own enough of the stock. Apple’s share price has soared 49% so far this year, ballooning its weight in stock indexes to record levels and pushing its market capitalization over $3 trillion. The issue has taken on additional urgency this year, as the market’s gains are being led primarily by a handful of megacap companies such as Apple, Microsoft MSFT.O and Nvidia NVDA.O, whose shares have outperformed.
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Of 418 U.S. broad market funds tracked by Morningstar, only 26 held a greater weight in Apple than the stock's weight in the S&P 500, according to their most recent regulatory filings. Alex Morris, chief investment officer of F/m Investments, said its F/m Investments Large Cap Focused Fund IAFLX.O holds a 13% weight in Apple, slightly above the weight in the Russell 1000 growth index .RLG, which is the fund's benchmark. Analysts' median price target for Apple shares is $190, according to Refinitiv data, 2% below the stock's closing price of $193.97 on Friday.
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Of 418 U.S. broad market funds tracked by Morningstar, only 26 held a greater weight in Apple than the stock's weight in the S&P 500, according to their most recent regulatory filings. Alex Morris, chief investment officer of F/m Investments, said its F/m Investments Large Cap Focused Fund IAFLX.O holds a 13% weight in Apple, slightly above the weight in the Russell 1000 growth index .RLG, which is the fund's benchmark. “Fund managers at their own peril don’t hold Apple and a handful of stocks just like it at index weight or about index weight,” Morris said.
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If shares of Apple keep rallying, that could hurt the results of active fund managers, who strive to beat indexes such as the S&P 500 or Russell 1000. Only 6% of active large-growth funds around in 2013 outperformed the category benchmark through 2022, the firm’s data showed. “Fund managers at their own peril don’t hold Apple and a handful of stocks just like it at index weight or about index weight,” Morris said.
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15061.0
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2023-07-03 00:00:00 UTC
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US STOCKS-Nasdaq futures rise as Tesla extends rally on record vehicle deliveries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-futures-rise-as-tesla-extends-rally-on-record-vehicle-deliveries
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nan
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nan
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By Bansari Mayur Kamdar and Johann M Cherian
July 3 (Reuters) - Nasdaq futures rose on Monday as Tesla shares extended gains after the electric-vehicle maker reported record vehicle deliveries in the second quarter.
TeslaTSLA.O gained 6.6% in premarket trading, a day after the company's quarterly vehicle deliveries topped market estimates on the back of incentives and steeper discounts.
All three major U.S. indexes ended the first half of the year on a positive note on Friday, with the Nasdaq Composite.IXIC rallying 31.7% to its sharpest first-half rise in four decades, in the face of concerns over a recession and a banking crisis.
"Powered by the AI frenzy of enthusiasm, a handful of technology firms have become money magnets, deflecting any concerns about the impact of high interest rates and banking turmoil," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"The second half of the year is still set to be dominated by speculation over just how high interest rates will go and how long they will stay there."
Investors awaited the minutes of the Federal Reserve's last policy meeting for cues on the central bank's monetary tightening path. The minutes are due to be released on Wednesday.
At 6:59 a.m. ET, Dow e-minis 1YMcv1 were down 49 points, or 0.14%, S&P 500 e-minis EScv1 were up 1.5 points, or 0.03%, and Nasdaq 100 e-minis NQcv1 were up 27.5 points, or 0.18%.
Trading volumes are expected to be thin with markets open for just half the day, ahead of the Independence Day holiday on Tuesday.
Investors also awaited surveys on U.S. manufacturing and services, job openings data as well as the June payrolls report.
Among other movers, AppleAAPL.O slipped 0.4%, after a strong rally last week that helped the world's most valuable company hit a market capitalization of more than $3 trillion on Friday.
U.S.-listed shares of Chinese carmakers Xpeng XPEV.N, Li Auto LI.O and Nio NIO.N rose between 5.8% and 9.1% after the companies reported a surge in June vehicle deliveries compared with a year earlier.
Oil majors Chevron CVX.N and Exxon Mobil XOM.N gained 1.0% and 0.7%, respectively, tracking a rise in oil prices after top exporters Saudi Arabia and Russia announced supply cuts for August. O/R
Fidelity National Information Services FIS.N added 9.3% as buyout groups weighed bids for a majority stake in Worldpay, co-owned by the financial services firm, according to a Financial Times report.
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Vinay Dwivedi)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar;))
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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Among other movers, AppleAAPL.O slipped 0.4%, after a strong rally last week that helped the world's most valuable company hit a market capitalization of more than $3 trillion on Friday. By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - Nasdaq futures rose on Monday as Tesla shares extended gains after the electric-vehicle maker reported record vehicle deliveries in the second quarter. All three major U.S. indexes ended the first half of the year on a positive note on Friday, with the Nasdaq Composite.IXIC rallying 31.7% to its sharpest first-half rise in four decades, in the face of concerns over a recession and a banking crisis.
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Among other movers, AppleAAPL.O slipped 0.4%, after a strong rally last week that helped the world's most valuable company hit a market capitalization of more than $3 trillion on Friday. By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - Nasdaq futures rose on Monday as Tesla shares extended gains after the electric-vehicle maker reported record vehicle deliveries in the second quarter. TeslaTSLA.O gained 6.6% in premarket trading, a day after the company's quarterly vehicle deliveries topped market estimates on the back of incentives and steeper discounts.
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Among other movers, AppleAAPL.O slipped 0.4%, after a strong rally last week that helped the world's most valuable company hit a market capitalization of more than $3 trillion on Friday. By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - Nasdaq futures rose on Monday as Tesla shares extended gains after the electric-vehicle maker reported record vehicle deliveries in the second quarter. All three major U.S. indexes ended the first half of the year on a positive note on Friday, with the Nasdaq Composite.IXIC rallying 31.7% to its sharpest first-half rise in four decades, in the face of concerns over a recession and a banking crisis.
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Among other movers, AppleAAPL.O slipped 0.4%, after a strong rally last week that helped the world's most valuable company hit a market capitalization of more than $3 trillion on Friday. By Bansari Mayur Kamdar and Johann M Cherian July 3 (Reuters) - Nasdaq futures rose on Monday as Tesla shares extended gains after the electric-vehicle maker reported record vehicle deliveries in the second quarter. TeslaTSLA.O gained 6.6% in premarket trading, a day after the company's quarterly vehicle deliveries topped market estimates on the back of incentives and steeper discounts.
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15062.0
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2023-07-03 00:00:00 UTC
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Will Consumer Discretionary Continue Defying The Doubters In Q3?
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AAPL
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https://www.nasdaq.com/articles/will-consumer-discretionary-continue-defying-the-doubters-in-q3
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nan
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nan
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Most investors are pretty up-to-speed on how the AI boom contributed to supersized gains in the tech sector in the second quarter. Heavily-weighted stocks such as Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Broadcom Inc. (NASDAQ: AVGO) and Adobe Inc. (NASDAQ: ADBE) posted double-digit price increases.
But the consumer discretionary sector, whose most heavily weighted stocks are Amazon.com (NASDAQ: AMZN), Tesla Inc. (NASDAQ: TSLA) and Home Depot Inc. (NYSE: HD) finished the second quarter with a gain of 13.55%. You can track broad sector performance using the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA: XLY).
Some investors have the obviously mistaken belief that consumer discretionary is doomed in an era of high inflation, but the sector’s performance in the quarter is a reminder that looking at the actual data is always better than basing investment decisions on an opinion or panic-stricken financial TV anchors.
Given the strong showing of consumer discretionary in the second quarter, does that mean it’s setting up for further gains in the second half of 2023?
Investor Money Flowing Into Consumer Discretionary
Let’s start with the money flows: Investors have been piling into consumer discretionary in recent weeks, and the sector outperformed the broader S&P 500 on a one-month and three-month basis.
Trading volume tells a story worth following, to get a sense of where sectors and the broad market may be headed: Although the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) advanced by a healthy 6.09% in June, that gain came in slightly lower-than-average volume. That could be an early warning sign that the rally is running out of steam, at least while stocks digest some of the recent gains.
However, the XLY ETF returned 12% in June, in volume 4% heavier than normal. Meanwhile, the rally in tech slowed, with the Technology Select Sector SPDR Fund (NYSEARCA: XLK) returning 5.83 in June, down from May’s 8.92% gain. Volume in the XLK was up 2% in June.
Sector Rotation In The Works?
This suggests some sector rotation may be in the works, which wouldn’t necessarily be a surprise. But keep in mind: A pullback after a big rally isn’t at all unusual, and doesn’t have to mean the market is crashing. Historically speaking, this year is likely to end with gains in the S&P, given that a down year in the index is almost always followed by a year with positive returns.
All of this bodes well for consumer discretionary. Contrary to the doom-and-gloom thesis that shoppers are keeping their cards in their wallets, revenue at Amazon.com has continued to grow. It’s becoming clear that consumers are forking out more in some categories than others.
For example, Home Depot saw a 4% sales slowdown in the most recent quarter. Rival Lowe’s Companies Inc.’s (NYSE: LOW) revenue skidded by 6%.
Cruising Into Profitability
But people are still driving new Teslas off the lot, and in a development that not many would have predicted, the top three gainers in the second quarter were big cruise lines. Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) and Royal Caribbean Cruises Ltd. (NYSE: RCL) are expected to sail back into profitability this year, while Wall Street sees that happening for Carnival Corp. & plc (NYSE: CCL) in 2024.
Other good bellwethers for the health of consumer discretionary include Chipotle Mexican Grill Inc. (NYSE: CMG), which is expected to grow earnings by 35% this year, and Lululemon Athletica Inc. (NASDAQ: LULU). The latter is based in Canada, so not eligible for admission to the S&P 500, but analysts are eyeing 18% earnings growth as consumers shell out for the company’s athleti-leisure fashions, which are pricier than a pair of yoga or workout pants that you could pick up at Walmart Inc. (NYSE: WMT).
There are certainly mixed signals when it comes to consumer optimism, and what goods people are willing to spend on. When it comes to staples, Target Corp. (NYSE: TGT) has said customers are gravitating toward its private-label grocery brands as they focus on needs versus wants. A blog post from consulting firm Deloitte, “State of the US consumer: June 2023: Financial well-being sentiment recovers from inflation woes,” notes that fewer consumers are citing concerns around their level of savings, worsening financial situations, and fewer are planning to delay large purchases.
Consumers Anxious About Their Jobs
However, the Deloitte study also pointed out that the number of workers feeling anxious about their employment situation has risen.
The trend to continue watching is consumers tightening their belts on staples, but continuing to spend on luxury or leisure items.
In addition to pent-up demand for cruises, diners continue flocking to fast-casual restaurants like Chipotle. Even as restaurants increase prices to keep up with inflation, consumers have defied expectations and continue to spend on meals outside the home.
For the moment, based on analyst expectations and what appears to be an easing in inflation, consumer discretionary looks likely to grow and end the year as a leading sector.
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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Heavily-weighted stocks such as Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Broadcom Inc. (NASDAQ: AVGO) and Adobe Inc. (NASDAQ: ADBE) posted double-digit price increases. Some investors have the obviously mistaken belief that consumer discretionary is doomed in an era of high inflation, but the sector’s performance in the quarter is a reminder that looking at the actual data is always better than basing investment decisions on an opinion or panic-stricken financial TV anchors. Other good bellwethers for the health of consumer discretionary include Chipotle Mexican Grill Inc. (NYSE: CMG), which is expected to grow earnings by 35% this year, and Lululemon Athletica Inc. (NASDAQ: LULU).
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Heavily-weighted stocks such as Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Broadcom Inc. (NASDAQ: AVGO) and Adobe Inc. (NASDAQ: ADBE) posted double-digit price increases. But the consumer discretionary sector, whose most heavily weighted stocks are Amazon.com (NASDAQ: AMZN), Tesla Inc. (NASDAQ: TSLA) and Home Depot Inc. (NYSE: HD) finished the second quarter with a gain of 13.55%. You can track broad sector performance using the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA: XLY).
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Heavily-weighted stocks such as Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Broadcom Inc. (NASDAQ: AVGO) and Adobe Inc. (NASDAQ: ADBE) posted double-digit price increases. But the consumer discretionary sector, whose most heavily weighted stocks are Amazon.com (NASDAQ: AMZN), Tesla Inc. (NASDAQ: TSLA) and Home Depot Inc. (NYSE: HD) finished the second quarter with a gain of 13.55%. You can track broad sector performance using the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA: XLY).
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Heavily-weighted stocks such as Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Broadcom Inc. (NASDAQ: AVGO) and Adobe Inc. (NASDAQ: ADBE) posted double-digit price increases. Meanwhile, the rally in tech slowed, with the Technology Select Sector SPDR Fund (NYSEARCA: XLK) returning 5.83 in June, down from May’s 8.92% gain. Even as restaurants increase prices to keep up with inflation, consumers have defied expectations and continue to spend on meals outside the home.
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15063.0
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2023-07-03 00:00:00 UTC
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Freyr Battery Powers Up After Successful Tests, NYSE Presentation
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AAPL
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https://www.nasdaq.com/articles/freyr-battery-powers-up-after-successful-tests-nyse-presentation
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nan
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nan
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Investors dream of getting into a promising stock early before it goes on a rocket ride. In hindsight, plenty of investors are kicking themselves for not seeing the potential of Apple Inc. (NASDAQ: AAPL) in 1984, or Amazon.com Inc. (NASDAQ: AMZN) in 1997.
The problem with that kind of rear-view mirror thinking is that a company’s potential isn’t always obvious in the early days, after an IPO. But these days, there is a theme of growing electrification as the world moves toward cleaner energy, and Freyr Battery SA (NYSE: FREY) could be in a good position as an early-stage company to benefit from that conversion.
Norway-based Freyr charged 33.19% higher the week ended June 30, as the company said that it had assembled and successfully charged its first semi-automated lithium-ion battery unit cells at a Norwegian facility.
Handing Out Samples Later This Year
In a statement, Freyr CEO Tom Einar Jensen said the successful tests pave the way for the company to ramp up process automation, battery cell production, and testing of cells it produced. Jensen said the company anticipates supplying customers with samples in the second half of this year.
He also noted an “increasingly robust pipeline of customer opportunities and use cases for our products.”
Shares gapped up and closed 20.26% higher following that announcement. The next day, Freyr presented its first “capital markets” day at the New York Stock Exchange, in what was a pitch to attract further investment. As more analysts and investors heard what the company had to say, the stock bolted another 3% higher on June 30.
Weekly trading volume was triple the average.
Increasing Production Speed & Yield
Among items in the NYSE presentation was Jensen’s statement that the company is moving toward a totally automated process, which will increase production speed and yields.
That’s important because as Jensen also showed in his presentation, batteries are literally everywhere in the process of electrification, or transitioning to clean-energy alternatives.
Applications include transportation, heating, and industrial processes, which are in the process of moving from fossil fuel-based systems to electric-powered systems.
The company has yet to show any revenue, as its operations are financed through post-IPO offerings, additional rounds of private equity, and grants from Norwegian governmental entities. Analysts don’t expect the company to be profitable either this year or next, but the upside trade for the week ending June 30 is a pretty good indication that investors view Freyr as an early opportunity.
U.S. Factory In The Works
In his NYSE presentation, Jenner mentioned the company’s planned U.S. gigafactory that will be built in Coweta County, Georgia. The company is also exploring a potential gigafactory site in Vaasa, Finland, but batteries produced at the U.S. site will qualify for subsidies under the Inflation Reduction Act.
A gigafactory is a large-scale facility that produces batteries, typically for electric vehicles and energy storage.
The NYSE presentation revealed other companies that Freyr has partnered with as it produces the batteries and brings them to market. Investor and miner Glencore plc (OTCMKTS: GLNCY), which is a financial backer of Freyr, is part of the consortium, as are Nidec Corp. (OTCMKTS: NJDCY), Siemens AG (OTCMKTS: SIEGY) and Caterpillar Inc. (NYSE: CAT).
Capital Spending Focused On 3 Projects
In its pitch to investors, the company, which went public in February 2021 via a SPAC merger, emphasized that it ended the first quarter with $475 million in cash.
Its 2023 capital expenditures are focused on three main projects: Its customer qualification plant in Norway, where it verifies product suitability; the Georgia Giga America plant, and maintaining progress at its Giga Arctic facility in Norway. This will be the company’s first full-scale battery manufacturing facility.
With no earnings and no revenue, and losses forecast into the foreseeable future, Freyr is a poster child for a speculative stock. In general, it’s wise to focus on companies that already have a robust revenue stream, and steady profitability is even better.
However, investors frequently like the idea of getting in early on a stock whose future appears lucrative. A company like Freyr could easily become an acquisition target of any number of companies needing batteries. The list of eventual suitors could include global automakers, utilities, or big industrial companies.
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 hindsight, plenty of investors are kicking themselves for not seeing the potential of Apple Inc. (NASDAQ: AAPL) in 1984, or Amazon.com Inc. (NASDAQ: AMZN) in 1997. But these days, there is a theme of growing electrification as the world moves toward cleaner energy, and Freyr Battery SA (NYSE: FREY) could be in a good position as an early-stage company to benefit from that conversion. Analysts don’t expect the company to be profitable either this year or next, but the upside trade for the week ending June 30 is a pretty good indication that investors view Freyr as an early opportunity.
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In hindsight, plenty of investors are kicking themselves for not seeing the potential of Apple Inc. (NASDAQ: AAPL) in 1984, or Amazon.com Inc. (NASDAQ: AMZN) in 1997. Handing Out Samples Later This Year In a statement, Freyr CEO Tom Einar Jensen said the successful tests pave the way for the company to ramp up process automation, battery cell production, and testing of cells it produced. Increasing Production Speed & Yield Among items in the NYSE presentation was Jensen’s statement that the company is moving toward a totally automated process, which will increase production speed and yields.
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In hindsight, plenty of investors are kicking themselves for not seeing the potential of Apple Inc. (NASDAQ: AAPL) in 1984, or Amazon.com Inc. (NASDAQ: AMZN) in 1997. Handing Out Samples Later This Year In a statement, Freyr CEO Tom Einar Jensen said the successful tests pave the way for the company to ramp up process automation, battery cell production, and testing of cells it produced. Analysts don’t expect the company to be profitable either this year or next, but the upside trade for the week ending June 30 is a pretty good indication that investors view Freyr as an early opportunity.
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In hindsight, plenty of investors are kicking themselves for not seeing the potential of Apple Inc. (NASDAQ: AAPL) in 1984, or Amazon.com Inc. (NASDAQ: AMZN) in 1997. The next day, Freyr presented its first “capital markets” day at the New York Stock Exchange, in what was a pitch to attract further investment. Increasing Production Speed & Yield Among items in the NYSE presentation was Jensen’s statement that the company is moving toward a totally automated process, which will increase production speed and yields.
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15064.0
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2023-07-03 00:00:00 UTC
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Should Franklin U.S. Large Cap Multifactor Index ETF (FLQL) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-franklin-u.s.-large-cap-multifactor-index-etf-flql-be-on-your-investing-radar-4
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nan
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nan
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Launched on 04/26/2017, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $915.55 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 typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 1.88%.
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.
This ETF has heaviest allocation to the Information Technology sector--about 33.10% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.39% of total assets, followed by Microsoft Corp (MSFT) and Broadcom Inc (AVGO).
The top 10 holdings account for about 26.77% of total assets under management.
Performance and Risk
FLQL seeks to match the performance of the LibertyQ US Large Cap Equity Index before fees and expenses. The LibertyQ US Large Cap Equity Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000 Index that have favorable exposure to four investment style factors quality, value, momentum and low volatility.
The ETF has gained about 14.94% so far this year and is up about 17.65% in the last one year (as of 07/03/2023). In the past 52-week period, it has traded between $36.61 and $44.77.
The ETF has a beta of 0.92 and standard deviation of 16.22% for the trailing three-year period. With about 212 holdings, it effectively diversifies company-specific risk.
Alternatives
Franklin U.S. Large Cap Multifactor Index 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, FLQL 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 $334.90 billion in assets, SPDR S&P 500 ETF has $419.35 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.
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Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : 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 7.39% of total assets, followed by Microsoft Corp (MSFT) and Broadcom Inc (AVGO). Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : 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 $915.55 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 Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : 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 7.39% of total assets, followed by Microsoft Corp (MSFT) and Broadcom Inc (AVGO). Launched on 04/26/2017, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : 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 7.39% of total assets, followed by Microsoft Corp (MSFT) and Broadcom Inc (AVGO). Alternatives Franklin U.S. Large Cap Multifactor Index 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 7.39% of total assets, followed by Microsoft Corp (MSFT) and Broadcom Inc (AVGO). Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : 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. Launched on 04/26/2017, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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15065.0
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2023-07-03 00:00:00 UTC
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1 Tech Stock to Buy and 1 to Avoid
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AAPL
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https://www.nasdaq.com/articles/1-tech-stock-to-buy-and-1-to-avoid
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nan
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nan
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Tech stocks have generally done well this year, staging a solid recovery from a tough 2022. But not all tech stocks are created equal. AT&T (NYSE: T) looks like a bargain, while Apple (NASDAQ: AAPL) looks severely overpriced.
Buy AT&T
There are two core reasons to invest in AT&T stock: The valuation and the dividend. The stock price reflects an extreme amount of pessimism that looks overdone, and the dividend, while unlikely to grow quickly, has a sky-high yield.
AT&T expects to generate at least $16 billion of free cash flow this year despite a slower pace of wireless subscriber additions. With a market capitalization of $114 billion, the stock trades for roughly 7 times free cash flow. That looks like a bargain.
On top of a rock-bottom valuation, AT&T's dividend now yields 7%. That dividend probably won't grow much in the coming years – the company's failed media acquisitions have left it with a debt-heavy balance sheet. But the dividend looks sustainable. If AT&T hits its guidance, the dividend will consume about 50% of free cash flow.
AT&T won't be immune from a slowdown in consumer spending if a recession strikes this year or next. If smartphone users delay upgrades to avoid shelling out for new phones, AT&T will not only see lower revenue from equipment sales, but there will also be fewer opportunities to win over customers from rivals. Global smartphone shipments tumbled 14.6% year over year in the first quarter .
While AT&T isn't an exciting stock, the company operates in a capital-intensive industry with only two major competitors and provides a service that has become essential for nearly all customers. There are risks, including the high debt load and the chance of a bigger slowdown in subscriber gains. But an extremely pessimistic valuation gives investors a sizable margin of safety.
Avoid Apple
Apple is a great company. The iPhone is iconic, and most iPhone users don't even consider an alternative when it's time to upgrade. But the stock is expensive. Apple's market capitalization crossed the $3 trillion mark on Friday. Based on the average analyst estimate for full-year earnings, Apple stock trades at a price-to-earnings ratio of about 32.
Are Apple's current earnings sustainable? It's hard to say. The company's profits shot up early in the pandemic, driven by intense consumer demand for PCs and gadgets. It's now starting to decline.
AAPL Net Income (TTM) data by YCharts
Through the first six months of fiscal 2023, Apple's net income fell by 9.2% year over year. Revenue was also down. While the iPhone eked out a sales gain in the second quarter, sales were down through the first half of the year. The services business, one of Apple's key growth engines, is barely growing at all, and Mac sales have tumbled as demand for PCs slumps.
If you had a crystal ball and knew that Apple's earnings would steadily rise going forward, paying 32 times earnings might make sense. But there's a real chance that Apple's earnings have peaked for the time being.
Apple's search for a new product that can grow to the scale of the iPhone has so far come up empty. The company plans to launch a $3,500 mixed-reality headset in early 2024, but it's hard to see that selling millions of units in its current iteration. VR and AR headsets have been slow to gain any real traction, and Apple's entry probably won't change things.
Many investors may view Apple as a safe stock that can be counted on in an uncertain economic climate. But Apple's lofty valuation makes the stock far riskier than many assume.
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Timothy Green has positions in AT&T. 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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AT&T (NYSE: T) looks like a bargain, while Apple (NASDAQ: AAPL) looks severely overpriced. AAPL Net Income (TTM) data by YCharts Through the first six months of fiscal 2023, Apple's net income fell by 9.2% year over year. That dividend probably won't grow much in the coming years – the company's failed media acquisitions have left it with a debt-heavy balance sheet.
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AT&T (NYSE: T) looks like a bargain, while Apple (NASDAQ: AAPL) looks severely overpriced. AAPL Net Income (TTM) data by YCharts Through the first six months of fiscal 2023, Apple's net income fell by 9.2% year over year. AT&T expects to generate at least $16 billion of free cash flow this year despite a slower pace of wireless subscriber additions.
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AT&T (NYSE: T) looks like a bargain, while Apple (NASDAQ: AAPL) looks severely overpriced. AAPL Net Income (TTM) data by YCharts Through the first six months of fiscal 2023, Apple's net income fell by 9.2% year over year. Avoid Apple Apple is a great company.
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AT&T (NYSE: T) looks like a bargain, while Apple (NASDAQ: AAPL) looks severely overpriced. AAPL Net Income (TTM) data by YCharts Through the first six months of fiscal 2023, Apple's net income fell by 9.2% year over year. But there's a real chance that Apple's earnings have peaked for the time being.
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15066.0
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2023-07-03 00:00:00 UTC
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Apple Hits $3T Market Cap: Can It Reach $4T by 2024-End?
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AAPL
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https://www.nasdaq.com/articles/apple-hits-%243t-market-cap%3A-can-it-reach-%244t-by-2024-end
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nan
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nan
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Apple Inc.’s AAPL market valuation surpassed $3 trillion on Jun 30, making it the only publicly traded company to accomplice this feat twice. The stock has been on a terrific run this year, having gained about 49%. Though the stock may witness some rough trading in the near term due to rising rate worries, its long-term prospects look bullish.
According to Fairlead Strategies, Apple’s latest breakout confirms a likely upside in the coming years, as quoted on Business Insider. Let’s find out the factors that can lead Apple to a market valuation of $4 trillion by 2024.
Price Objective of $254: A 31% Upside Potential
Based on the breakout and analysis, Fairlead Strategies sets a price objective of $254 per share for Apple. This represents a significant 31% increase from the current stock price. Achieving this target will push Apple's market valuation to approximately $4 trillion, considering the current number of outstanding shares.
Technical Analysis Points to Uptrend Resumption
Katie Stockton, the founder of Fairlead Strategies, detects the resumption of the uptrend that “preceded the 2021-2022 trading range.” This suggests continued positive momentum for Apple's stock in the short term. The absence of counter-trend signals further supports the rally.
Can Apple Touch $254 by 2024-End?
Per Stockton, the technical price objective of $254 per share can be reached by the end of 2024. This timeframe allows for gradual upward movement and aligns with the analysis of the stock's historical performance.
Apple's AR/VR Market Entry
Apple's success has not been fueled primarily by artificial intelligence (AI), unlike some of its peers. Instead, AAPL's strength lies in its proficient supply-chain management. The company's recent announcement of the Apple Vision headset, its first product in the augmented reality/virtual reality (AR/VR) market, produced excitement among users and investors. Priced at $3,499, the headset set to be released early next year, is contributing to the positive sentiment surrounding the Apple stock.
Apple: A Safe Haven Amid Fed & Inflation Worries?
Apple has been an unwavering investment option, even during uncertain economic times. Angelo Zino, CFRA vice president and technology equity analyst, highlights Apple as a safe haven for investors, as quoted on Yahoo.
The company's ability to circumnavigate various economic conditions and deliver consistent returns positions it as a long-term investment than a short-term trade. Apple usually targets high-end customers, which helps the company navigate economic slowdowns. For example, the Apple Vision Pro headset targets a premium market segment, safeguarding it from inflation and recession worries.
Will Back-to-School Season Create Another Milestone for Apple?
While Mac and iPad revenues in the last-reporting quarter were lower than the previous year, iPhone sales experienced a significant year-over-year increase. Also, the introduction of the 15-inch MacBook Air variant and the back-to-school shopping season can boost Mac sales.
Opportunities in the India Market
Apple's entry into the India market signifies its determination to expand its presence in the world's most crowded nation. The company plans to shift some of its manufacturing operations to India, diversifying its production base and reducing its dependence on China. This move can mitigate geopolitical challenges and strengthen AAPL's position.
Upbeat Zacks Indicators
The Zacks Consensus Estimate for Apple's earnings for the June-end quarter is pegged at $1.18 per share. The Most Accurate Estimate is pinned at $1.22 per share, leading to an Earnings ESP of +3.39%. This is a positive sign for the stock. The stock has a Value score of B.
Any Wall of Worry?
Though the success of the Vision Pro headset can result in growth opportunities, replicating the same level of success as iPhone will be difficult. The brokerage firm UBS cautioned investors about slowing iPhone sales, as quoted on MarketWatch. Citing data from the market research firm Counterpoint, UBS’ analyst Vogt reported that May sell-through was 14.5 million units, the lowest since August.
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 Inc.’s AAPL market valuation surpassed $3 trillion on Jun 30, making it the only publicly traded company to accomplice this feat twice. Instead, AAPL's strength lies in its proficient supply-chain management. This move can mitigate geopolitical challenges and strengthen AAPL's position.
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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 Inc.’s AAPL market valuation surpassed $3 trillion on Jun 30, making it the only publicly traded company to accomplice this feat twice. Instead, AAPL's strength lies in its proficient supply-chain management.
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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 Inc.’s AAPL market valuation surpassed $3 trillion on Jun 30, making it the only publicly traded company to accomplice this feat twice. Instead, AAPL's strength lies in its proficient supply-chain management.
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Apple Inc.’s AAPL market valuation surpassed $3 trillion on Jun 30, making it the only publicly traded company to accomplice this feat twice. Instead, AAPL's strength lies in its proficient supply-chain management. This move can mitigate geopolitical challenges and strengthen AAPL's position.
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15067.0
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2023-07-03 00:00:00 UTC
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MORNING BID AMERICAS-Second-half lift, Tesla beat
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AAPL
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https://www.nasdaq.com/articles/morning-bid-americas-second-half-lift-tesla-beat
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nan
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nan
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A look at the day ahead in U.S. and global markets from Mike Dolan
A holiday-staggered week for U.S. markets looks like picking up where a bumper first half of the year ended on Friday, with Tesla wowing the gallery with impressive delivery stats.
Tesla stockTSLA.O zoomed 5% higher ahead of Monday's open, beating forecasts with record deliveries in the second quarter that were 83% up on the prior year and up 10% on the first quarter.
That upbeat news underlines the best first half performance in 40 years for the tech-heavy Nasdaq - and the eye-popping 74% year-to-date boom in the 10 biggest U.S. digital and tech stocks contained in New York's FANG index .NYFANG.
The news was a bit less rosy for America's largest cap stock AppleAAPL.O, which last week became the first ever company to top a $3 trillion market capitalization.
Although it appeared to have little immediate effect on its stock out of hours, Monday's Financial Times reported that Apple had been forced to make major cuts to production forecasts for its Vision Pro augmented-reality headset due to design complexity.
After the S&P500 .SPX closed at its highest level in more than year on Friday, and was up 16% for 2023 so far, bourses in Asia and around the world advanced on Monday too.
Aided by loose monetary policy, the exporting-fillip of a weakening yen and new chip-sector alliances, Japan's Nikkei .N225 closed at a 33-year high. Italy's financials-heavy benchmark FTSE MIB <>FTMIB> hit its highest since 2008, spurred on Monday by a 5% surge in GeneraliGASI.MI after news Italy's insurance regulator authorised a major investor Delfin to raise its stake to above 10%.
U.S. stock futures were a fraction higher again, with Tuesday's Independence Day holiday likely to keep trading volumes subdued.
But the surprising strength of AI-infused U.S. stocks in the first half of the year leaves a high bar for the macro economy over the final six months if the gains are to broaden out beyond the leading tech winners.
Manufacturing is certainly not the driving force at the moment, with final business surveys for June showing stalling growth or contraction in Asia and Europe as China's much-vaunted economic rebound stumbles.
U.S. Treasury Secretary Janet Yellen is due to visits Beijing this week.
The final June U.S. manufacturing readout later on Monday is likely to mirror global surveys, but this week economic focus will be on the buoyant labour market. June national payrolls and other related reports are due out by Friday.
Despite last Friday's news of a further easing of U.S. core inflation in May, markets are taking Federal Reserve signals at their word and, given the prevailing tight jobs market, pricing 35 basis points more of interest rate rises this year. Futures now don't price a full quarter point cut from the implied peak for almost a year.
Two-year Treasury yields rose as high as 4.96%, their highest in almost 4 months. The 2-to-10-year yield curve inverted to 110bp - its most in more than 40 years.
Events to watch for later on Monday:
* S&PGlobal final U.S. manufacturing survey for June, equivalent reports from around the world
* Treasury auctions 3 and 6-month bills
Tesla reports record quarterly deliveries https://tmsnrt.rs/46xWNy1
Change in US companies' market cap in June https://tmsnrt.rs/3qgKBRH
Top 20 companies in the world by market cap https://tmsnrt.rs/45JVJXt
Chinese share prices reflect slowing economy https://tmsnrt.rs/3JF806h
(By Mike Dolan; Editing by Toby Chopra; mike.dolan@thomsonreuters.com. Twitter: @reutersMikeD)
((mike.dolan@thomsonreuters.com; +44 207 542 8488; Reuters Messaging: mike.dolan.reuters.com@thomsonreuters.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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The news was a bit less rosy for America's largest cap stock AppleAAPL.O, which last week became the first ever company to top a $3 trillion market capitalization. That upbeat news underlines the best first half performance in 40 years for the tech-heavy Nasdaq - and the eye-popping 74% year-to-date boom in the 10 biggest U.S. digital and tech stocks contained in New York's FANG index .NYFANG. Although it appeared to have little immediate effect on its stock out of hours, Monday's Financial Times reported that Apple had been forced to make major cuts to production forecasts for its Vision Pro augmented-reality headset due to design complexity.
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The news was a bit less rosy for America's largest cap stock AppleAAPL.O, which last week became the first ever company to top a $3 trillion market capitalization. A look at the day ahead in U.S. and global markets from Mike Dolan A holiday-staggered week for U.S. markets looks like picking up where a bumper first half of the year ended on Friday, with Tesla wowing the gallery with impressive delivery stats. Tesla stockTSLA.O zoomed 5% higher ahead of Monday's open, beating forecasts with record deliveries in the second quarter that were 83% up on the prior year and up 10% on the first quarter.
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The news was a bit less rosy for America's largest cap stock AppleAAPL.O, which last week became the first ever company to top a $3 trillion market capitalization. A look at the day ahead in U.S. and global markets from Mike Dolan A holiday-staggered week for U.S. markets looks like picking up where a bumper first half of the year ended on Friday, with Tesla wowing the gallery with impressive delivery stats. Despite last Friday's news of a further easing of U.S. core inflation in May, markets are taking Federal Reserve signals at their word and, given the prevailing tight jobs market, pricing 35 basis points more of interest rate rises this year.
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The news was a bit less rosy for America's largest cap stock AppleAAPL.O, which last week became the first ever company to top a $3 trillion market capitalization. But the surprising strength of AI-infused U.S. stocks in the first half of the year leaves a high bar for the macro economy over the final six months if the gains are to broaden out beyond the leading tech winners. The final June U.S. manufacturing readout later on Monday is likely to mirror global surveys, but this week economic focus will be on the buoyant labour market.
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15068.0
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2023-07-03 00:00:00 UTC
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GLOBAL MARKETS-World stocks firm, Nikkei closes at 33-year peak
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AAPL
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https://www.nasdaq.com/articles/global-markets-world-stocks-firm-nikkei-closes-at-33-year-peak
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nan
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nan
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By Dhara Ranasinghe
LONDON, July 3 (Reuters) - World stocks rose to a two-week peak on Monday, with Japan's Nikkei closing at its highest level in 33 years, drawing support from signs that cooling inflation might temper central banks' appetite to further hike rates.
European shares rallied .STOXX, while U.S. equity futures pointed to a positive open for Wall Street which closes early ahead of Tuesday's July 4 holiday.
In Asia, a Bank of Japan survey showed business sentiment improved in the second quarter, while the Caixin manufacturing survey dipped to 50.5, from 50.9 in May, showing a slowdown in China's factory activity. That slightly beat market forecasts, but underlined the weakening economic trend.
U.S. data on Friday which hinted towards cooling inflation helped bolster gains in the tech sector and underpinned sentiment in world stocks. This saw the tech-heavy Nasdaq on Friday make its biggest first-half gain in 40 years. Apple AAPL.O closed with a $3 trillion market valuation for the first time.
"You have had a pull back in how far rates will rise, so you see the outperformance in tech, which is driving the market," said Seema Shah, chief global strategist, Principle Asset Management in London.
Tesla-listed shares in Frankfurt TSLA.F jumped 5% after the electric vehicle firm said on Sunday it delivered a record number of vehicles in the second quarter.
MSCI's world equity index .MIWD00000PUS rose 0.25% to its highest level in just over two weeks, while the pan-European STOXX 600 index also hit a two-week peak .STOXX.
"The day of reckoning is still coming but there is strength in the economy so you can find positivity in equity markets," said Nordea chief analyst Jan von Gerich.
China's blue-chip stocks .CSI300 rose on hopes of more policy easing after the country's central bank said it would implement prudent monetary policy in a "precise and forceful manner" to support economic growth and employment.
Chinese blue chips .CSI300 shed 5% last quarter while much of the developed world rallied.
WEAK YEN
The prospect of a further U.S. rate rise and the Bank of Japan's staunch commitment to super-easy monetary policy continues to underpin the dollar against the yen.
The dollar stood at 144.86 yen JPY=EBS on Monday, after hitting an eight-month peak of 145.07 last week before the risk of Japanese intervention slowed its ascent.
The euro was likewise firm at 157.66 yen EURJPY=R, and just off its recent 15-year top of 158.01. The single currency was last down 0.25% at $1.0883 EUR=EBS.
Sentiment had been soothed on Friday by a modest downward surprise in U.S. inflation while a flat reading for consumer spending suggested the Federal Reserve's rate hikes were having an impact, albeit gradually.
Debt markets, however, still imply around an 87% chance of the Fed hiking to 5.25-5.5% this month, and a 40% probability of yet a further rise by November. FEDWATCH
Key U.S. data this week includes closely watched surveys on manufacturing and services, job openings and the June payrolls report. Median forecasts are for a steady unemployment rate, while jobs are seen up 225,000 after May's surprisingly strong 339,000.
Michael Feroli, a JPMorgan economist said even these forecasts would not be sufficient for the Fed to avoid further tightening.
"While we see a strong case for a July hike, we still believe the two subsequent payroll reports prior to the meeting in September will show enough slowing to allow the Fed to more comfortably go on extended hold."
Turkey's lira nudged to yet another record low beyond 26.1 per dollar TRYTOM=D3, with investors' awaiting central bank minutes later in the day after policy makers ramped up their policy rate by 650 basis points in June - the strongest signal of a return to orthodoxy though the hike had fallen short of market expectations.
Rising rates globally have seen gold XAU= struggle recently and the metal was last at $1,912 an ounce, 1.37% higher than its three-month low $1,892.82.
And in oil markets, Brent LCOc1 fell 0.4% to $75.12 a barrel, while U.S. crude CLc1 eased a similar amount to $70.27.
Global FX performance http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
(Reporting by Dhara Ranasinghe; additional reporting by Wayne Cole in Sydney; editing by Nell Mackenzie and David Evans)
((Dhara.Ranasinghe@thomsonreuters.com; +442075422684;))
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 closed with a $3 trillion market valuation for the first time. By Dhara Ranasinghe LONDON, July 3 (Reuters) - World stocks rose to a two-week peak on Monday, with Japan's Nikkei closing at its highest level in 33 years, drawing support from signs that cooling inflation might temper central banks' appetite to further hike rates. "You have had a pull back in how far rates will rise, so you see the outperformance in tech, which is driving the market," said Seema Shah, chief global strategist, Principle Asset Management in London.
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Apple AAPL.O closed with a $3 trillion market valuation for the first time. By Dhara Ranasinghe LONDON, July 3 (Reuters) - World stocks rose to a two-week peak on Monday, with Japan's Nikkei closing at its highest level in 33 years, drawing support from signs that cooling inflation might temper central banks' appetite to further hike rates. FEDWATCH Key U.S. data this week includes closely watched surveys on manufacturing and services, job openings and the June payrolls report.
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Apple AAPL.O closed with a $3 trillion market valuation for the first time. By Dhara Ranasinghe LONDON, July 3 (Reuters) - World stocks rose to a two-week peak on Monday, with Japan's Nikkei closing at its highest level in 33 years, drawing support from signs that cooling inflation might temper central banks' appetite to further hike rates. Turkey's lira nudged to yet another record low beyond 26.1 per dollar TRYTOM=D3, with investors' awaiting central bank minutes later in the day after policy makers ramped up their policy rate by 650 basis points in June - the strongest signal of a return to orthodoxy though the hike had fallen short of market expectations.
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Apple AAPL.O closed with a $3 trillion market valuation for the first time. U.S. data on Friday which hinted towards cooling inflation helped bolster gains in the tech sector and underpinned sentiment in world stocks. FEDWATCH Key U.S. data this week includes closely watched surveys on manufacturing and services, job openings and the June payrolls report.
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2023-07-03 00:00:00 UTC
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2 Warren Buffett Stocks That Are Screaming Buys in July and 1 to Avoid Like the Plague
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-that-are-screaming-buys-in-july-and-1-to-avoid-like-the-plague
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For the better part of the past 58 years, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been running circles around Wall Street. As of the end of 2022, the annualized return of Berkshire's Class A (BRK.A) shares was double the total return, including dividends paid, of the broad-based S&P 500 since Buffett became CEO -- 19.8% vs. 9.9%.
It's this phenomenal track record that has new and tenured investors mirroring his every trade and riding his coattails to sizable long-term gains.
Entering the second half of 2023, Berkshire Hathaway's $370 billion investment portfolio has stakes in more than 50 securities. Among these holdings are two Warren Buffett stocks that stand out as screaming buys in July, as well as one exceptionally popular stock that should be avoided like the plague.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett stock No. 1 that's a screaming buy in July: General Motors
The first Buffet stock that looks like a surefire buy for long-term investors is Detroit automaker General Motors (NYSE: GM).
Arguably the biggest knock you'll find in GM's proverbial motor is the expectation that U.S. economic activity will slow. Auto stocks are highly cyclical, which means a reversal in U.S. gross domestic product would be expected to lead to a tangible slowdown in new-vehicle sales. This tied-at-the-hip cyclical association between auto stocks and the U.S. economy is why automakers are typically valued at a high-single-digit price-to-earnings (P/E) ratio.
While there are plenty of economic indicators that suggest economic weakness is likely, General Motors has, thus far, shrugged them off and continued to fire on all cylinders.
The most attractive catalyst for GM is its push into electric vehicles (EVs), autonomous vehicles (AVs), and batteries. It's going to take decades to transition consumer vehicles and enterprise fleets to alternative energy sources like EVs, which means GM and its peers are set to enjoy a long-awaited growth renaissance.
In 2021, the company upped its EV and AV spending forecast through 2025 to $35 billion and set an ambitious goal of introducing at least 30 new EV models globally by the end of 2025. Further, CEO Mary Barra has laid out a path to produce more than 1 million EVs annually in North America by mid-decade.
Although General Motors' future is all about EVs and AVs, it's important not to overlook the success it's having with its non-EV lineup. Whereas EV kingpin Tesla is seeing its automotive margin deflate under the weight of a half-dozen price cuts in 2023, Barra has masterfully led GM and allowed the company to increase its automotive free cash flow forecast this year.
To add to the above, General Motors brings more than a century of history and branding to the table that newer EV producers can't offer. Though intangible, GM's branding power remains a powerful tool that can drive sales domestically, and potentially in international markets.
General Motors screams "Value!" with its shares trading at just 5.6 times Wall Street's consensus earnings per share for the current year.
Warren Buffett stock No. 2 that's a screaming buy in July: Bank of America
The second Warren Buffett stock that can be bought hand over fist in July is Berkshire Hathaway's second-largest holding by market value, Bank of America (NYSE: BAC) (also known as "BofA").
Similar to GM, questions about the health of the U.S. economy are weighing on BofA. Bank stocks are cyclical, which means recessions almost always lead to a rise in loan delinquencies and loan losses. Since recessions are often coupled with dovish Federal Reserve monetary policy, it's usually a recipe for weaker earnings.
The other concern for Bank of America is the residual impacts the financial sector is dealing with from the short-lived banking crisis that saw SVB Financial's Silicon Valley Bank fail, as well as Signature Bank and First Republic Bank get seized. Despite no bank failures in two months, investors appear to be waiting for confirmation that the banking industry is in the clear. With regard to BofA, everything looks sound.
The reason the Oracle of Omaha loves bank stocks is because they're able to take advantage of disproportionately long periods of economic expansion. As the U.S. economy naturally expands over time, so does the deposit and loan profile for money-center banks like BofA.
But what sets Bank of America apart from other big-bank stocks is its sensitivity to changes in interest rates. The nation's central bank has been laser-focused on tackling historically high inflation since the first quarter of last year, resulting in the steepest rate-hiking cycle in decades. For banks with outstanding variable-rate loans, every rate hike is putting more net-interest income in their pockets. Even if the U.S. were to dip into a recession, the benefit of higher interest rates could more than offset any loan losses BofA may contend with.
Bank of America also deserves credit for its digital push. Nearly three-quarters of all households banking with BofA are accessing their accounts via the mobile app or online. What's more, just over half of all sales (51%) were completed digitally in the March-ended quarter. That's up 18 percentage points from the first quarter of 2020. Since digital banking is far less-costly than in-person interactions for BofA, we're seeing a discernible improvement in the company's operating efficiency.
Buying high-quality bank stocks below their book value is generally a smart move for patient investors. At just 89% of its book value, Bank of America represents a screaming bargain.
Image source: Apple.
The Warren Buffett stock to avoid like the plague in July: Apple
However, not all Warren Buffett stocks are worth buying in July. Though I know this is nothing short of blasphemy when discussing Berkshire Hathaway's holdings, I'd suggest avoiding tech stock Apple (NASDAQ: AAPL) like the plague this month.
As of the closing bell on June 28, Apple accounted for almost 47% of Berkshire Hathaway's invested assets and was the largest publicly traded company by market cap in the United States. In Buffett's own words, it's "a better business than any we own."
If you were to ask, "Is Apple a good business?" the answer would undoubtedly be yes. It's one of the most-recognized brands in the world, has a very loyal customer base, and it's been a cash-flow machine for much of the past two decades. The company continually allows its innovation to do the talking, with iPhone leading the way in domestic smartphone sales and the company's subscription services segment outpacing the growth rate of its physical products.
The problem with Apple is that it's valuation no longer makes any sense. While it's common for investors to willingly pay a premium for growth stocks, Apple isn't growing in fiscal 2023 (Apple's fiscal year will end in late September).
According to Wall Street's consensus, Apple is expected to report a revenue and profit decline of roughly 2% to 3% in fiscal 2023. That may not sound like much, but it comes with above-average inflation as a tailwind. On a real-money basis (i.e., including inflation), Apple's sales are set to decline by the high-single-digits this year.
The culprits for this real-money sales decline look to be Mac and iPhone. Personal-computing demand fell off a cliff once the worst of the COVID-19 pandemic was put into the rearview mirror and life began to return to some semblance of normal. The kick in the pants for Apple is that iPhone sales have declined by $5.1 billion through the first six months of fiscal 2023 when compared to the same period last year. An apparent lack of differentiation to prior 5G-capable models led to underwhelming (by Apple's standards) sales of the product.
Even with a phenomenal share repurchase program that's had a discernably positive impact on Apple's earnings per share, new investors would be paying a multiple of 31 times current-year consensus earnings to own shares of a company with a high-single-digit real-revenue decline. With the exception of a short period during the pandemic, Apple's stock is the priciest it's been since the Great Recession.
Apple may be a cash cow, but there's no reason to pay 31 times earnings for a company with a stalled growth engine.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. SVB Financial provides credit and banking services to The Motley Fool. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Tesla. The Motley Fool recommends General Motors and SVB Financial and recommends the following options: long January 2025 $25 calls on General Motors. 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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Though I know this is nothing short of blasphemy when discussing Berkshire Hathaway's holdings, I'd suggest avoiding tech stock Apple (NASDAQ: AAPL) like the plague this month. It's going to take decades to transition consumer vehicles and enterprise fleets to alternative energy sources like EVs, which means GM and its peers are set to enjoy a long-awaited growth renaissance. As of the closing bell on June 28, Apple accounted for almost 47% of Berkshire Hathaway's invested assets and was the largest publicly traded company by market cap in the United States.
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Though I know this is nothing short of blasphemy when discussing Berkshire Hathaway's holdings, I'd suggest avoiding tech stock Apple (NASDAQ: AAPL) like the plague this month. For the better part of the past 58 years, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been running circles around Wall Street. Even with a phenomenal share repurchase program that's had a discernably positive impact on Apple's earnings per share, new investors would be paying a multiple of 31 times current-year consensus earnings to own shares of a company with a high-single-digit real-revenue decline.
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Though I know this is nothing short of blasphemy when discussing Berkshire Hathaway's holdings, I'd suggest avoiding tech stock Apple (NASDAQ: AAPL) like the plague this month. 2 that's a screaming buy in July: Bank of America The second Warren Buffett stock that can be bought hand over fist in July is Berkshire Hathaway's second-largest holding by market value, Bank of America (NYSE: BAC) (also known as "BofA"). The other concern for Bank of America is the residual impacts the financial sector is dealing with from the short-lived banking crisis that saw SVB Financial's Silicon Valley Bank fail, as well as Signature Bank and First Republic Bank get seized.
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Though I know this is nothing short of blasphemy when discussing Berkshire Hathaway's holdings, I'd suggest avoiding tech stock Apple (NASDAQ: AAPL) like the plague this month. Berkshire Hathaway CEO Warren Buffett. 1 that's a screaming buy in July: General Motors The first Buffet stock that looks like a surefire buy for long-term investors is Detroit automaker General Motors (NYSE: GM).
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2023-07-03 00:00:00 UTC
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GRAPHIC-Apple makes history as first $3 trillion company amid tech stock surge
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https://www.nasdaq.com/articles/graphic-apple-makes-history-as-first-%243-trillion-company-amid-tech-stock-surge
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July 3 (Reuters) - Apple Inc AAPL.O become the first company in the world to reach a market value of $3 trillion, buoyed by hopes over its expansion in new markets coupled with expectations of a more moderate approach to interest rate hikes by the Federal Reserve.
The iPhone maker's advance was among the most eye catching in a month marked by investor interest in the potential of artificial intelligence, with share buyers also particularly favouring companies with strong balance sheets and cash flows.
Apple's most recent quarterly report in May showing its revenue and profits beat analysts' expectations, and its track record of stock buybacks, reinforced its reputation as a safe investment during global economic uncertainty.
In a similar vein, electric car maker Tesla Inc TSLA.O witnessed a 28% jump in its market capitalization in June.
Tesla's surge was fuelled by deals struck by rivals Ford Motor Co F.N and General Motors Co GM.N to gain access to Tesla's charging network, which could potentially establish Tesla's chargers as the industry standard.
Elsewhere Nvidia Corp NVDA.O joined the $1 trillion valuation club last month, as its market cap climbed 11.8%, with investors betting on its potential to become a major beneficiary of a boom in artificial intelligence.
The company's shares have soared following a revenue forecast that was more than 50% above the Wall Street estimate in May.
Apple and Microsoft Corp MSFT.O led the list of top 20 global companies by market capitalization at the end of June.
By contrast, Alphabet Inc's GOOGL.O market cap dropped 2.3% last month to $1.53 trillion, on rising competitive pressures from Microsoft's Bing which has grown in prominence after the integration of the artificial intelligence behind ChatGPT.
Top 20 companies in the world by market cap https://tmsnrt.rs/45JVJXt
Change in market cap in June https://tmsnrt.rs/3qgKBRH
(Reporting by Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by David Holmes)
((patturaja.muruga@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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July 3 (Reuters) - Apple Inc AAPL.O become the first company in the world to reach a market value of $3 trillion, buoyed by hopes over its expansion in new markets coupled with expectations of a more moderate approach to interest rate hikes by the Federal Reserve. The iPhone maker's advance was among the most eye catching in a month marked by investor interest in the potential of artificial intelligence, with share buyers also particularly favouring companies with strong balance sheets and cash flows. Apple's most recent quarterly report in May showing its revenue and profits beat analysts' expectations, and its track record of stock buybacks, reinforced its reputation as a safe investment during global economic uncertainty.
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July 3 (Reuters) - Apple Inc AAPL.O become the first company in the world to reach a market value of $3 trillion, buoyed by hopes over its expansion in new markets coupled with expectations of a more moderate approach to interest rate hikes by the Federal Reserve. The iPhone maker's advance was among the most eye catching in a month marked by investor interest in the potential of artificial intelligence, with share buyers also particularly favouring companies with strong balance sheets and cash flows. Apple and Microsoft Corp MSFT.O led the list of top 20 global companies by market capitalization at the end of June.
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July 3 (Reuters) - Apple Inc AAPL.O become the first company in the world to reach a market value of $3 trillion, buoyed by hopes over its expansion in new markets coupled with expectations of a more moderate approach to interest rate hikes by the Federal Reserve. Elsewhere Nvidia Corp NVDA.O joined the $1 trillion valuation club last month, as its market cap climbed 11.8%, with investors betting on its potential to become a major beneficiary of a boom in artificial intelligence. Top 20 companies in the world by market cap https://tmsnrt.rs/45JVJXt Change in market cap in June https://tmsnrt.rs/3qgKBRH (Reporting by Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by David Holmes) ((patturaja.muruga@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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July 3 (Reuters) - Apple Inc AAPL.O become the first company in the world to reach a market value of $3 trillion, buoyed by hopes over its expansion in new markets coupled with expectations of a more moderate approach to interest rate hikes by the Federal Reserve. In a similar vein, electric car maker Tesla Inc TSLA.O witnessed a 28% jump in its market capitalization in June. Elsewhere Nvidia Corp NVDA.O joined the $1 trillion valuation club last month, as its market cap climbed 11.8%, with investors betting on its potential to become a major beneficiary of a boom in artificial intelligence.
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15071.0
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2023-07-03 00:00:00 UTC
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GLOBAL MARKETS-Nikkei leads Asia higher, China lags behind
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https://www.nasdaq.com/articles/global-markets-nikkei-leads-asia-higher-china-lags-behind
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By Wayne Cole
SYDNEY, July 3 (Reuters) - Asian shares firmed on Monday as demand for tech stocks buoyed Japan's market, while a data-packed week promises to be pivotal to the outlook for the Chinese economy and U.S. interest rates.
China's factory activity slowed in June as the Caixin manufacturing survey showed a dip to 50.5, from 50.9 in May. That slightly beat market forecasts of 50.2, but still underlined the weakening trend seen in other surveys.
China's central bank has promised more "forceful" action to support the economy and looks likely to soon get a . Something major is needed given Chinese blue chips .CSI300 shed 5% last quarter while much of the developed world rallied.
"As Japan found in the 1990s, it's hard work stimulating an economy experiencing a significant property slump against a backdrop of high sector debt and a falling population," cautioned analysts at ANZ in a note.
In contrast, hopes Japanese firms will fill any gaps created by Sino-U.S. decoupling combined with a weak yen to lift the Nikkei .N225 almost 20% last quarter. The index climbed another 1.7% on Monday to within a whisker of 30-year peaks.
A survey from the Bank of Japan showed business sentiment improved in the second quarter as easing supply constraints and the removal of pandemic curbs lifted factory output and demand.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 1.2%, though it was still lagging far behind Japan's market.
EUROSTOXX 50 futures STXEc1 and FTSE futures FFIc1 both added 0.4%. S&P 500 futures ESc1 and Nasdaq futures NQc1 were steady ahead of the July 4 holiday, having gained more than 6% in June.
The high-flying tech sector could get another boost from news TeslaTSLA.O delivered a record 466,000 vehicles in the second quarter, topping market estimates of around 445,000.
That followed Apple's AAPL.O crossing above $3 trillion in valuation for the first time on Friday and sealing the Nasdaq's best quarter in 40 years.
Analysts at BofA noted the market value of the seven biggest tech stocks had ballooned by $4.1 trillion so far this year, while Apple, Microsoft MSFT.O and Alphabet GOOGL.O combined were worth more than the entire emerging market.
FED STILL SEEN HIKING
Sentiment had been soothed on Friday by a modest downward surprise in U.S. inflation while a flat reading for consumer spending suggested the Federal Reserve's rate hikes were having an impact, albeit gradually.
Debt markets, however, still imply around an 87% chance of the Fed hiking to 5.25-5.5% this month, and a 40% probability of yet a further rise by November. FEDWATCH
Minutes of the Fed's last policy meeting are out on Wednesday and will expand on why they decided to pause, though most policy makers also expected to hike at least two more times by year end.
Important U.S. data this week includes closely watched surveys on manufacturing and services, job openings and the June payrolls report. Median forecasts are for a steady unemployment rate, while jobs are seen up 225,000 after May's surprisingly strong 339,000.
Michael Feroli, an economist at JPMorgan, said that wouldn't be nearly enough for the Fed to stand down from the recent rhetoric pointing to further tightening.
"While we see a strong case for a July hike, we still believe the two subsequent payroll reports prior to the meeting in September will show enough slowing to allow the Fed to more comfortably go on extended hold."
The prospect of at least one more U.S. rate rise continues to underpin the dollar against the yen, given the Bank of Japan shows little sign of abandoning its super-easy policies.
The dollar stood at 144.48 yen JPY=EBS on Monday, after hitting an eight-month peak of 145.07 last week before the risk of Japanese intervention slowed its ascent.
The euro was likewise firm at 157.61 yen EURJPY=R, and just off its recent 15-year top of 158.01. The single currency was range-bound on the dollar at $1.0915 EUR=EBS, having spent the entire year so far trading between $1.0635 and $1.1096.
Rising interest rates globally have seen gold struggle recently and the metal was last at $1,920 an ounce XAU=, near last week's three-month low at $1,892. GOL/
Oil prices marked time as investors waited to see the impact of another round of output cuts by Saudi Arabia. O/R
Brent LCOc1 rose 6 cents to $75.47 a barrel, while U.S. crude CLc1 firmed 2 cents to $70.66.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Christopher Cushing, Himani Sarkar and Lincoln Feast.)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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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That followed Apple's AAPL.O crossing above $3 trillion in valuation for the first time on Friday and sealing the Nasdaq's best quarter in 40 years. By Wayne Cole SYDNEY, July 3 (Reuters) - Asian shares firmed on Monday as demand for tech stocks buoyed Japan's market, while a data-packed week promises to be pivotal to the outlook for the Chinese economy and U.S. interest rates. "As Japan found in the 1990s, it's hard work stimulating an economy experiencing a significant property slump against a backdrop of high sector debt and a falling population," cautioned analysts at ANZ in a note.
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That followed Apple's AAPL.O crossing above $3 trillion in valuation for the first time on Friday and sealing the Nasdaq's best quarter in 40 years. By Wayne Cole SYDNEY, July 3 (Reuters) - Asian shares firmed on Monday as demand for tech stocks buoyed Japan's market, while a data-packed week promises to be pivotal to the outlook for the Chinese economy and U.S. interest rates. China's factory activity slowed in June as the Caixin manufacturing survey showed a dip to 50.5, from 50.9 in May.
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That followed Apple's AAPL.O crossing above $3 trillion in valuation for the first time on Friday and sealing the Nasdaq's best quarter in 40 years. By Wayne Cole SYDNEY, July 3 (Reuters) - Asian shares firmed on Monday as demand for tech stocks buoyed Japan's market, while a data-packed week promises to be pivotal to the outlook for the Chinese economy and U.S. interest rates. A survey from the Bank of Japan showed business sentiment improved in the second quarter as easing supply constraints and the removal of pandemic curbs lifted factory output and demand.
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That followed Apple's AAPL.O crossing above $3 trillion in valuation for the first time on Friday and sealing the Nasdaq's best quarter in 40 years. By Wayne Cole SYDNEY, July 3 (Reuters) - Asian shares firmed on Monday as demand for tech stocks buoyed Japan's market, while a data-packed week promises to be pivotal to the outlook for the Chinese economy and U.S. interest rates. China's factory activity slowed in June as the Caixin manufacturing survey showed a dip to 50.5, from 50.9 in May.
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2023-07-03 00:00:00 UTC
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Apple forced to make cuts to Vision Pro production plans - FT
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https://www.nasdaq.com/articles/apple-forced-to-make-cuts-to-vision-pro-production-plans-ft
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Adds details from FT report in paragraphs 4-6
July 3 (Reuters) - Apple AAPL.O has been forced to make major cuts to production forecasts for its augmented-reality headset Vision Pro launched last month, the Financial Times reported on Monday, citing multiple people with direct knowledge of the manufacturing process.
Chinese contract manufacturer Luxshare, Apple's only assembler of the device, was preparing to make fewer than 400,000 units of Vision Pro in 2024, the newspaper said citing two people close to Apple and Luxshare.
Apple and Luxshare did not respond to a Reuters request for comment.
The iPhone maker has asked two China-based suppliers for enough components for 130,000 to 150,000 units in the first year, FT reported, citing two China-based suppliers of some components for the Vision Pro.
The complexity of the headset design and difficulties in production are behind the scaling back of targets, FT reported, and plans for a more affordable version of the device have been pushed back, it said.
The Vision Pro will start at $3,499, more than three times the cost of the priciest headset in Meta's line of mixed and virtual reality devices.
(Reporting by Gokul Pisharody in Bengaluru; Editing by Nivedita Bhattacharjee)
((Gokul.Pisharody@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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Adds details from FT report in paragraphs 4-6 July 3 (Reuters) - Apple AAPL.O has been forced to make major cuts to production forecasts for its augmented-reality headset Vision Pro launched last month, the Financial Times reported on Monday, citing multiple people with direct knowledge of the manufacturing process. Chinese contract manufacturer Luxshare, Apple's only assembler of the device, was preparing to make fewer than 400,000 units of Vision Pro in 2024, the newspaper said citing two people close to Apple and Luxshare. The Vision Pro will start at $3,499, more than three times the cost of the priciest headset in Meta's line of mixed and virtual reality devices.
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Adds details from FT report in paragraphs 4-6 July 3 (Reuters) - Apple AAPL.O has been forced to make major cuts to production forecasts for its augmented-reality headset Vision Pro launched last month, the Financial Times reported on Monday, citing multiple people with direct knowledge of the manufacturing process. Chinese contract manufacturer Luxshare, Apple's only assembler of the device, was preparing to make fewer than 400,000 units of Vision Pro in 2024, the newspaper said citing two people close to Apple and Luxshare. The iPhone maker has asked two China-based suppliers for enough components for 130,000 to 150,000 units in the first year, FT reported, citing two China-based suppliers of some components for the Vision Pro.
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Adds details from FT report in paragraphs 4-6 July 3 (Reuters) - Apple AAPL.O has been forced to make major cuts to production forecasts for its augmented-reality headset Vision Pro launched last month, the Financial Times reported on Monday, citing multiple people with direct knowledge of the manufacturing process. Chinese contract manufacturer Luxshare, Apple's only assembler of the device, was preparing to make fewer than 400,000 units of Vision Pro in 2024, the newspaper said citing two people close to Apple and Luxshare. The iPhone maker has asked two China-based suppliers for enough components for 130,000 to 150,000 units in the first year, FT reported, citing two China-based suppliers of some components for the Vision Pro.
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Adds details from FT report in paragraphs 4-6 July 3 (Reuters) - Apple AAPL.O has been forced to make major cuts to production forecasts for its augmented-reality headset Vision Pro launched last month, the Financial Times reported on Monday, citing multiple people with direct knowledge of the manufacturing process. Chinese contract manufacturer Luxshare, Apple's only assembler of the device, was preparing to make fewer than 400,000 units of Vision Pro in 2024, the newspaper said citing two people close to Apple and Luxshare. The iPhone maker has asked two China-based suppliers for enough components for 130,000 to 150,000 units in the first year, FT reported, citing two China-based suppliers of some components for the Vision Pro.
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2023-07-02 00:00:00 UTC
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You'll Be Shocked at How Much Apple Stock Warren Buffett Owns
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https://www.nasdaq.com/articles/youll-be-shocked-at-how-much-apple-stock-warren-buffett-owns
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nan
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Warren Buffett is one of the best investors in history, and he's made a lot of money making concentrated bets on iconic companies. The latest is Apple (NASDAQ: AAPL), and in this video Travis Hoium shows just how much he has invested in the company.
*Stock prices used were end-of-day prices of June 28, 2023. The video was published on June 28, 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 June 26, 2023
Travis Hoium has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. 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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The latest is Apple (NASDAQ: AAPL), and in this video Travis Hoium shows just how much he has invested in the company. Warren Buffett is one of the best investors in history, and he's made a lot of money making concentrated bets on iconic companies. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, and Microsoft.
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The latest is Apple (NASDAQ: AAPL), and in this video Travis Hoium shows just how much he has invested in the company. 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 June 26, 2023 Travis Hoium has positions in Apple and Berkshire Hathaway.
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The latest is Apple (NASDAQ: AAPL), and in this video Travis Hoium shows just how much he has invested in the company. 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 June 26, 2023 Travis Hoium has positions in Apple and Berkshire Hathaway.
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The latest is Apple (NASDAQ: AAPL), and in this video Travis Hoium shows just how much he has invested in the company. See the 10 stocks *Stock Advisor returns as of June 26, 2023 Travis Hoium has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, and Microsoft.
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15074.0
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2023-07-02 00:00:00 UTC
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GLOBAL MARKETS-Nikkei leads Asia higher, China struggles to keep up
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AAPL
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https://www.nasdaq.com/articles/global-markets-nikkei-leads-asia-higher-china-struggles-to-keep-up
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nan
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nan
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By Wayne Cole
SYDNEY, July 3 (Reuters) - Asian shares edged higher on Monday as demand for tech stocks buoyed Japan's market, while a data-packed week promises to be pivotal in the outlook for the Chinese economy and U.S. interest rates.
China's recovery has so far disappointed high expectations and the Caixin manufacturing survey due later on Monday is forecast to dip to 50.2 in June, from 50.9, and may even slip into contraction.
The central bank has promised more "forceful" action to support the economy and looks likely to soon get a . Something major is needed given Chinese blue chips .CSI300 shed 5% last quarter while much of the developed world rallied.
"As Japan found in the 1990s, it's hard work stimulating an economy experiencing a significant property slump against a backdrop of high sector debt and a falling population," cautioned analysts at ANZ in a note.
In contrast, Japanese stocks have been going gangbusters as an influx of offshore buying lifted the Nikkei .N225 almost 20% last quarter, spurred by a weak yen and hopes of Japanese firms filling any gaps created by Sino-U.S. decoupling. Early Monday, the index was up another 1.2% and close to recent peaks.
A survey from the Bank of Japan showed business sentiment improved in the second quarter as easing supply constraints and the removal of pandemic curbs lifted factory output and demand.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.2%, but has been lagging far behind Japan's market.
S&P 500 futures ESc1 and Nasdaq futures NQc1 were steady ahead of the July 4 holiday, having both gained more than 6% in June.
The high-flying tech sector could get another boost from news TeslaTSLA.O delivered a record 466,000 vehicles in the second quarter, topping market estimates of around 445,000.
That followed Apple's AAPL.O crossing above $3 trillion in valuation for the first time on Friday and sealing the Nasdaq's best quarter in 40 years.
Analysts at BofA noted the market value of the seven biggest tech stocks had ballooned by $4.1 trillion so far this year, while Apple, Microsoft MSFT.O and Alphabet GOOGL.O combined were worth more than the entire emerging market.
FED STILL SEEN HIKING
Sentiment had been soothed on Friday by a modest downward surprise in U.S. inflation while a flat reading for consumer spending suggested the Federal Reserve's rate hikes were having an impact, albeit gradually.
Debt markets, however, still imply around an 84% chance of the Fed hiking to 5.25-5.5% this month, and a 60% probability of yet a further rise by November. FEDWATCH
Minutes of the Fed's last policy meeting are out on Wednesday and will expand on why they decided to pause, though most policy makers also expected to hike at least two more times by year end.
Important U.S. data this week includes closely watched surveys on manufacturing and services, job openings and the June payrolls report. Median forecasts are for a steady unemployment rate, while jobs are seen up 225,000 after May's surprisingly strong 339,000.
"We don't think that would be nearly enough slowing for Chair Powell and the rest of the FOMC to stand down from the recent rhetoric pointing to further tightening," said Michael Feroli, an economist at JPMorgan.
"While we see a strong case for a July hike, we still believe the two subsequent payroll reports prior to the meeting in September will show enough slowing to allow the Fed to more comfortably go on extended hold."
The prospect of at least one more U.S. rate rise continues to underpin the dollar against the yen, given the Bank of Japan shows little sign of abandoning its super-easy policies.
The dollar stood at 144.27 yen JPY=EBS on Monday, after hitting an eight-month peak of 145.07 last week before the risk of Japanese intervention slowed its ascent.
The euro was likewise firm at 157.40 yen EURJPY=R, and just off its recent 15-year top of 158.01. The single currency was range-bound on the dollar at $1.0985 EUR=EBS, having spent the entire year so far trading between $1.0635 and $1.1096.
Rising interest rates globally have seen gold struggle recently and the metal was last lying at $1,918 an ounce XAU=, near last weeks' three-month low at $1,892. GOL/
Oil prices dipped as investors waited to see the impact of another round of output cuts by Saudi Arabia. O/R
Brent LCOc1 eased 26 cents to $75.15 a barrel, while U.S. crude CLc1 fell 25 cents to $70.39 per barrel.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Christopher Cushing)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.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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That followed Apple's AAPL.O crossing above $3 trillion in valuation for the first time on Friday and sealing the Nasdaq's best quarter in 40 years. By Wayne Cole SYDNEY, July 3 (Reuters) - Asian shares edged higher on Monday as demand for tech stocks buoyed Japan's market, while a data-packed week promises to be pivotal in the outlook for the Chinese economy and U.S. interest rates. "As Japan found in the 1990s, it's hard work stimulating an economy experiencing a significant property slump against a backdrop of high sector debt and a falling population," cautioned analysts at ANZ in a note.
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That followed Apple's AAPL.O crossing above $3 trillion in valuation for the first time on Friday and sealing the Nasdaq's best quarter in 40 years. By Wayne Cole SYDNEY, July 3 (Reuters) - Asian shares edged higher on Monday as demand for tech stocks buoyed Japan's market, while a data-packed week promises to be pivotal in the outlook for the Chinese economy and U.S. interest rates. Important U.S. data this week includes closely watched surveys on manufacturing and services, job openings and the June payrolls report.
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That followed Apple's AAPL.O crossing above $3 trillion in valuation for the first time on Friday and sealing the Nasdaq's best quarter in 40 years. By Wayne Cole SYDNEY, July 3 (Reuters) - Asian shares edged higher on Monday as demand for tech stocks buoyed Japan's market, while a data-packed week promises to be pivotal in the outlook for the Chinese economy and U.S. interest rates. Analysts at BofA noted the market value of the seven biggest tech stocks had ballooned by $4.1 trillion so far this year, while Apple, Microsoft MSFT.O and Alphabet GOOGL.O combined were worth more than the entire emerging market.
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That followed Apple's AAPL.O crossing above $3 trillion in valuation for the first time on Friday and sealing the Nasdaq's best quarter in 40 years. By Wayne Cole SYDNEY, July 3 (Reuters) - Asian shares edged higher on Monday as demand for tech stocks buoyed Japan's market, while a data-packed week promises to be pivotal in the outlook for the Chinese economy and U.S. interest rates. Early Monday, the index was up another 1.2% and close to recent peaks.
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15075.0
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2023-07-02 00:00:00 UTC
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Guru Fundamental Report for AAPL
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-8
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click 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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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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15076.0
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2023-07-02 00:00:00 UTC
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3 Things About Apple That Smart Investors Know
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AAPL
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https://www.nasdaq.com/articles/3-things-about-apple-that-smart-investors-know-7
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nan
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nan
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Wall Street always seems to have one eye on Apple (NASDAQ: AAPL) as the world's most valuable company, with a market cap of $2.9 trillion. The company has made countless headlines this year while making plans to move manufacturing out of China, unveiling its first virtual/augmented reality (VR/AR) headset, and expanding in fintech with the launch of a savings account.
Since the start of 2023, Apple shares have soared roughly 50%. The company's reputation for consistent growth has rallied investors, with excitement growing as its market cap inches closer to $3 trillion. With a solid long-term outlook, it's not a bad idea to learn more about this tech giant and consider investing.
Here are three things about Apple that smart investors know.
1. Apple is the king of consumer tech
Apple has attained massive dominance in consumer tech with the help of its almost unrivaled brand loyalty. The first-generation iPhone debuted in 2007 and continues to offer reliable growth, with the segment's revenue rising 7% year over year in fiscal 2022. The most attractive part of the company's smartphone business is consistent consumer demand, even under challenging conditions.
After macroeconomic headwinds in 2022, the entire tech market started the year in a slump. Smartphone leaders Samsung and Xiaomi experienced shipment declines of 19% and 24%, respectively, in the first quarter of 2023. But the same period saw Apple's iPhone segment report a 2% rise in revenue, proving the resiliency of its business.
The popularity of the iPhone has become the company's biggest asset when touting its other products and services. The connectivity among all of its devices has paved the way for it to achieve leading market shares in tablets, smartwatches, and headphones. Meanwhile, digital services like Apple TV+, Music, Fitness+, and more have become the company's second-highest-earning segment.
Apple's past success when entering new product categories bodes well for the long-term potential of its recently unveiled Vision Pro headset, which combines VR and AR. An investment in the tech giant could be an investment in the future leader of this quickly growing $31 billion market.
2. It's quietly making inroads into AI
Tech companies like Microsoft, Alphabet, and Advanced Micro Devices are littering their earnings calls with the term "artificial intelligence" as they assure investors of their intent to cash in on this lucrative industry.
Apple has so far steered clear of directly calling any of its technologies artificial intelligence (AI). Instead, the company is focused on talking up new features it is developing with AI models and machine learning.
Avoiding the references to AI isn't a bad idea, since it prevents Apple from being lumped into the same category as other companies, which could lead to stock volatility in the future. It is skillfully protecting itself from being directly compared to other AI companies while enhancing its products with the technology.
For instance, at its Worldwide Developers Conference on June 5, Apple unveiled several new AI features across its lineup. Improvements to the iPhone's autocorrect use a model similar to ChatGPT to learn how users text and type. Meanwhile, AirPods Pro will automatically turn off noise canceling when the wearer engages in conversation.
As one of the biggest names in consumer tech, the company manufactures the devices that will get AI into the hands of the public. Consequently, it could play a major role in the development of the sector.
3. Apple's stock is slightly expensive
Apple's stock has experienced a bull run this year. There haven't been many solid reasons for the rally, with investors seemingly caught up in the hype of the company hitting a $3 trillion market cap. In fact, it has reported revenue declines for two consecutive quarters, falling 5.5% in the first quarter and 2.5% in the second.
As a result, Apple's price-to-earnings ratio (P/E) has risen 54% since Jan. 1 and currently sits at 33. A P/E of less than 20 is often considered a good value, putting Apple's stock at a slightly expensive price point.
The good news is the shares are still cheaper than many of its peers. Among the Big Five of tech, the chart below shows only Alphabet has a better P/E than Apple.
Data by YCharts.
A recent rally may have reduced the value of Apple's stock, but the longer you hold, the less that will matter. The company's shares have soared roughly 320% over the last five years alone. With growing positions in AI and VR/AR, the company is likely to continue on its current trajectory.
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 June 26, 2023
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. 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft. 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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Wall Street always seems to have one eye on Apple (NASDAQ: AAPL) as the world's most valuable company, with a market cap of $2.9 trillion. The company has made countless headlines this year while making plans to move manufacturing out of China, unveiling its first virtual/augmented reality (VR/AR) headset, and expanding in fintech with the launch of a savings account. Apple's past success when entering new product categories bodes well for the long-term potential of its recently unveiled Vision Pro headset, which combines VR and AR.
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Wall Street always seems to have one eye on Apple (NASDAQ: AAPL) as the world's most valuable company, with a market cap of $2.9 trillion. It's quietly making inroads into AI Tech companies like Microsoft, Alphabet, and Advanced Micro Devices are littering their earnings calls with the term "artificial intelligence" as they assure investors of their intent to cash in on this lucrative industry. Apple's stock is slightly expensive Apple's stock has experienced a bull run this year.
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Wall Street always seems to have one eye on Apple (NASDAQ: AAPL) as the world's most valuable company, with a market cap of $2.9 trillion. Avoiding the references to AI isn't a bad idea, since it prevents Apple from being lumped into the same category as other companies, which could lead to stock volatility in the future. Apple's stock is slightly expensive Apple's stock has experienced a bull run this year.
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Wall Street always seems to have one eye on Apple (NASDAQ: AAPL) as the world's most valuable company, with a market cap of $2.9 trillion. Apple's stock is slightly expensive Apple's stock has experienced a bull run this year. * 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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15077.0
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2023-07-02 00:00:00 UTC
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1 Low-Risk Vanguard ETF That Could Triple Your Money in 12 Years
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AAPL
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https://www.nasdaq.com/articles/1-low-risk-vanguard-etf-that-could-triple-your-money-in-12-years
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nan
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nan
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The stock market has been booming lately, with the S&P 500 and Nasdaq up 14% and 30%, respectively, since the beginning of the year.
Although there are still concerns surrounding a potential recession, now can be a fantastic time to consider investing. Many stocks are still priced well below their peaks, and by investing now, you can snag quality stocks at a discount and set yourself up for substantial long-term returns.
If you're a risk-averse investor looking to make the most of your money, there's one Vanguard ETF that's nearly guaranteed to keep your savings safe. Even better, it could triple your investment in just over a decade with next to no effort on your part.
Invest in the right places
If you're looking for a low-maintenance investment that can also help you earn a substantial amount of money over time, the Vanguard S&P 500 ETF (NYSEMKT: VOO) may be a smart option.
This ETF tracks the S&P 500, meaning it includes the same stocks as the index itself and aims to mirror its long-term performance. The S&P 500 contains stocks from 500 of the largest and strongest companies in the U.S., including household names like Amazon, Apple, and Microsoft.
A few other advantages of this ETF include:
Easy diversification: By investing in just one ETF, you'll own a stake in 500 companies from multiple industries. This provides immediate diversification, and it can help protect your portfolio against volatility. Even if a few stocks take a turn for the worse, the vast majority will survive.
A long track record of positive returns: The S&P 500 itself has a decades-long history of recovering from bear markets, recessions, and everything in between. While there are never any guarantees when investing, it's extremely likely it will rebound from any future downturns as well.
Low fees: The Vanguard S&P 500 ETF, specifically, has a rock-bottom expense ratio of just 0.03%. This is far lower than many other ETFs, and it could save you thousands of dollars in fees over time.
Perhaps the best part of this ETF, however, is that it requires next to no effort on your part. You never need to research companies or decide which individual stocks to buy. Simply invest whatever you can afford, then let the fund do all the heavy lifting.
Triple your money while barely lifting a finger
Compound earnings can help your savings grow exponentially over time. By investing now and simply letting your money sit for a few years or decades, you could earn more than you might think.
Historically, the S&P 500 itself has earned an average annual return of around 10% per year. While it's incredibly unlikely you'll see 10% returns every single year, the annual ups and downs should average out to around 10% per year over the long haul.
If you were to invest in the Vanguard S&P 500 ETF today while earning a 10% average annual return, you'd more than triple your money within 12 years -- even if you made no additional investments in that time.
To really supercharge your savings, however, you can continue investing a little each month. For example, say you invest $1,000 now, but you also invest $100 per month while earning a 10% average annual return. Here's approximately how much you could accumulate over time:
NUMBER OF YEARS TOTAL SAVINGS
12 $29,000
15 $42,000
20 $75,000
25 $129,000
30 $215,000
35 $353,000
Data source: Author's calculations via Investor.gov
While it can take decades to see substantial growth, investing in the stock market is one of the easiest, safest, and most effective ways to build wealth. And thanks to compound earnings, getting started investing early can dramatically increase your savings over time.
There's no single correct way to invest, and the Vanguard S&P 500 ETF won't be right for every portfolio. But if you're looking for a low-risk, low-maintenance investment that can help you make a lot of money with minimal effort, it could be a smart option.
10 stocks we like better than Vanguard S&P 500 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 S&P 500 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 June 26, 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 S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, and Vanguard S&P 500 ETF. 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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A long track record of positive returns: The S&P 500 itself has a decades-long history of recovering from bear markets, recessions, and everything in between. Triple your money while barely lifting a finger Compound earnings can help your savings grow exponentially over time. 12 $29,000 15 $42,000 20 $75,000 25 $129,000 30 $215,000 35 $353,000 Data source: Author's calculations via Investor.gov While it can take decades to see substantial growth, investing in the stock market is one of the easiest, safest, and most effective ways to build wealth.
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If you were to invest in the Vanguard S&P 500 ETF today while earning a 10% average annual return, you'd more than triple your money within 12 years -- even if you made no additional investments in that time. For example, say you invest $1,000 now, but you also invest $100 per month while earning a 10% average annual return. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Invest in the right places If you're looking for a low-maintenance investment that can also help you earn a substantial amount of money over time, the Vanguard S&P 500 ETF (NYSEMKT: VOO) may be a smart option. If you were to invest in the Vanguard S&P 500 ETF today while earning a 10% average annual return, you'd more than triple your money within 12 years -- even if you made no additional investments in that time. For example, say you invest $1,000 now, but you also invest $100 per month while earning a 10% average annual return.
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Even better, it could triple your investment in just over a decade with next to no effort on your part. By investing now and simply letting your money sit for a few years or decades, you could earn more than you might think. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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15078.0
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2023-07-02 00:00:00 UTC
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The Best AI Stock to Own Could Be Sitting in Your Pocket
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AAPL
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https://www.nasdaq.com/articles/the-best-ai-stock-to-own-could-be-sitting-in-your-pocket
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nan
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nan
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If you're hunting for artificial intelligence (AI) stocks to buy, you're not alone.
Excitement over AI has surged since OpenAI launched ChatGPT late last year, and it's not just investors who see an opportunity in the new technology. Companies are talking up their AI initiatives more than ever before, a sign that the boom is more than just hype.
Meanwhile, shares of Nvidia (NASDAQ: NVDA), the semiconductor champ, skyrocketed after management gave much better guidance than expected for the second quarter. This indicates that demand for its AI chips is surging as businesses large and small are looking to leverage new generative AI technologies.
However, many of the well-known AI stocks have already seen their valuations spike as investors have piled into them, even as most have barely shown positive results from the AI boom.
Nvidia, for example, now trades at a price-to-earnings ratio of around 200 and has a market cap of $1 trillion. C3.ai, another AI stock that soared this year, has a price-to-sales ratio of 15, even though revenue growth was flat.
If you're looking for a reasonably priced AI stock that could be a big winner, the answer could be more obvious than you think.
Image source: Getty Images.
The consumer tech king
Unlike its big tech peers -- including Microsoft, Alphabet, Amazon, and Meta Platforms -- Apple (NASDAQ: AAPL) has spent little time talking up its ambitions in artificial intelligence, and its management has generally avoided using the buzzy phrase on earnings calls and other presentations.
However, Apple could be one of the biggest winners from the AI boom since it has a suite of devices ready to serve as vehicles for the new technology. In other words, unlike many companies trying to leverage the power of AI, Apple has a business model already built in to capitalize on it: selling devices and the services that go with them.
And right now, there's no device more capable of capitalizing on the AI boom than the Vision Pro, the mixed reality headset that Apple unveiled at its Worldwide Developers Conference in early June and that retails for $3,500.
The Vision Pro uses machine learning to do things like render a full image of your face so you can use FaceTime even though you wear the device over your eyes and it has no full frontal cameras. To do so, the Vision Pro uses its front sensors and a neural network to create what Apple calls "your digital persona."
AI is also what allows the Vision Pro to function without using the kind of handheld haptics that the Meta Quest requires, one example of how the Vision Pro is pushing the limits of technology, including AI.
That also forms the backbone of other tools like predictive text, Siri, and new applications, including Journal, which can personalize suggestions taken from your iPhone to help you write.
Why Apple is the easiest AI stock to own
It's unclear if the Vision Pro will be a success, and the new device doesn't go on sale until early next year. But its introduction puts Apple on the pole position to control the next computing platform, meaning it's also the company most likely to own the device that serves as the vehicle for AI.
If the technology is as powerful as AI bulls believe it will be, Apple's consumer-tech ecosystem will grow even stronger.
Apple has tons of brand equity in consumer hardware, competitive advantages through its installed base of 2 billion complementary devices, and now the device that could be the next generation of tech hardware.
If you're putting together an AI stock portfolio, Apple is a no-brainer.
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 June 26, 2023
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. 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. Jeremy Bowman has positions in Amazon.com and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends C3.ai. 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 consumer tech king Unlike its big tech peers -- including Microsoft, Alphabet, Amazon, and Meta Platforms -- Apple (NASDAQ: AAPL) has spent little time talking up its ambitions in artificial intelligence, and its management has generally avoided using the buzzy phrase on earnings calls and other presentations. In other words, unlike many companies trying to leverage the power of AI, Apple has a business model already built in to capitalize on it: selling devices and the services that go with them. And right now, there's no device more capable of capitalizing on the AI boom than the Vision Pro, the mixed reality headset that Apple unveiled at its Worldwide Developers Conference in early June and that retails for $3,500.
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The consumer tech king Unlike its big tech peers -- including Microsoft, Alphabet, Amazon, and Meta Platforms -- Apple (NASDAQ: AAPL) has spent little time talking up its ambitions in artificial intelligence, and its management has generally avoided using the buzzy phrase on earnings calls and other presentations. See the 10 stocks *Stock Advisor returns as of June 26, 2023 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. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia.
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The consumer tech king Unlike its big tech peers -- including Microsoft, Alphabet, Amazon, and Meta Platforms -- Apple (NASDAQ: AAPL) has spent little time talking up its ambitions in artificial intelligence, and its management has generally avoided using the buzzy phrase on earnings calls and other presentations. AI is also what allows the Vision Pro to function without using the kind of handheld haptics that the Meta Quest requires, one example of how the Vision Pro is pushing the limits of technology, including AI. Why Apple is the easiest AI stock to own It's unclear if the Vision Pro will be a success, and the new device doesn't go on sale until early next year.
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The consumer tech king Unlike its big tech peers -- including Microsoft, Alphabet, Amazon, and Meta Platforms -- Apple (NASDAQ: AAPL) has spent little time talking up its ambitions in artificial intelligence, and its management has generally avoided using the buzzy phrase on earnings calls and other presentations. Why Apple is the easiest AI stock to own It's unclear if the Vision Pro will be a success, and the new device doesn't go on sale until early next year. But its introduction puts Apple on the pole position to control the next computing platform, meaning it's also the company most likely to own the device that serves as the vehicle for AI.
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15079.0
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2023-07-02 00:00:00 UTC
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Wall St Week Ahead-After first-half rally, stocks' July winning streak on the line
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-after-first-half-rally-stocks-july-winning-streak-on-the-line-0
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By Lewis Krauskopf
NEW YORK, June 30 (Reuters) - A U.S. stocks rally is cruising into a month that has proven strong in recent years, though equities must navigate employment data and an earnings season that could be precarious, with the Federal Reserve bent on raising U.S. interest rates.
The S&P 500 defied recession fears and a U.S. banking crisis to notch a 15.9% gain in the first half. The Nasdaq Composite .IXIC powered ahead 31.7% for its biggest first-half increase in four decades.
Investors betting the upward trend will continue over the next few weeks have recent history on their side. The S&P 500 .SPX has posted a positive return in eight consecutive Julys, and the tech-heavy Nasdaq 100 index .NDX has climbed in July for 15 straight years.
"We have had a pretty resilient market in the first half of this year,” said Mona Mahajan, senior investment strategist at Edward Jones. “The market needs one big question answered, and that is what does the economy look like in the back half of the year.”
Several indicators show growing optimism about equities. Positive sentiment in the American Association of Individual Investors survey has come in above its historical average for four straight weeks, while positioning measures tracked by banks have shown investors recently increasing their exposure to stocks.
The Cboe Volatility Index .VIX, which measures investor demand for protection against stock swings, recently hit its lowest level since early 2020.
At the same time, July brings its share of potentially market-moving events. First up is next Friday’s U.S. employment report, which will give investors a snapshot of how the economy is faring after 500 basis points of rate hikes from the Fed since last year, its most aggressive tightening in decades.
Signs of continued solid job growth could reinforce a view that has helped boost markets this year: that the U.S. economy can avoid a severe recession despite the Fed’s tightening.
"The labor market is probably going to end up proving to be the big catalyst for what may happen market-wise and also monetary policy wise," said Omar Aguilar, chief executive officer and chief investment officer of Schwab Asset Management.
Second-quarter corporate results will kick off the following week. S&P 500 companies are expected to post an overall drop in earnings of 5.7% from the year-earlier period, according to Refinitiv IBES.
Investors will focus on results from seven tech and other megacap companies, including Apple AAPL.O, Microsoft MSFT.O and Nvidia NVDA.O, whose outsized gains have driven the S&P 500's rise this year.
“To the degree the Magnificent Seven has been carrying this..., those are the multiples most likely to get hit with any sort of warning, any sort of negative announcement," said John Lynch, chief investment officer for Comerica Wealth Management.
The consumer price index report arrives on July 12, a crucial read on inflation before the Fed's July 26 policy decision. The U.S. central bank held rates steady in June and has signaled two more increases are coming this year, including one widely expected in July.
While stocks have so far taken policymakers’ projections of higher rates in stride, that could change if bond yields continue to rise. Benchmark yields recently hit three-month highs, with the 10-year U.S. Treasury yield last around 3.8%, well over double where it stood at the end of 2021.
Rising yields generally dull the allure of stocks compared to bonds, but in recent months equity valuations have still climbed.
"At some point, this move in interest rates has got to have some consequences for the markets," Matt Maley, chief market strategist at Miller Tabak, said in a note on Friday.
Those doubts could stem from concern about economic fallout from rate hikes.
Analysts at UBS Global Wealth Management said in a recent note the likelihood of a recession hinges most on monetary policy becoming more restrictive, an eventuality stocks are not priced for.
"With stocks already priced for the near perfection of a soft landing, we see better risk-reward in high-quality bonds over equities," the UBS analysts wrote.
Strong first half for U.S. stocks https://tmsnrt.rs/3NB6LpW
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
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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Investors will focus on results from seven tech and other megacap companies, including Apple AAPL.O, Microsoft MSFT.O and Nvidia NVDA.O, whose outsized gains have driven the S&P 500's rise this year. By Lewis Krauskopf NEW YORK, June 30 (Reuters) - A U.S. stocks rally is cruising into a month that has proven strong in recent years, though equities must navigate employment data and an earnings season that could be precarious, with the Federal Reserve bent on raising U.S. interest rates. First up is next Friday’s U.S. employment report, which will give investors a snapshot of how the economy is faring after 500 basis points of rate hikes from the Fed since last year, its most aggressive tightening in decades.
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Investors will focus on results from seven tech and other megacap companies, including Apple AAPL.O, Microsoft MSFT.O and Nvidia NVDA.O, whose outsized gains have driven the S&P 500's rise this year. The S&P 500 .SPX has posted a positive return in eight consecutive Julys, and the tech-heavy Nasdaq 100 index .NDX has climbed in July for 15 straight years. Positive sentiment in the American Association of Individual Investors survey has come in above its historical average for four straight weeks, while positioning measures tracked by banks have shown investors recently increasing their exposure to stocks.
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Investors will focus on results from seven tech and other megacap companies, including Apple AAPL.O, Microsoft MSFT.O and Nvidia NVDA.O, whose outsized gains have driven the S&P 500's rise this year. By Lewis Krauskopf NEW YORK, June 30 (Reuters) - A U.S. stocks rally is cruising into a month that has proven strong in recent years, though equities must navigate employment data and an earnings season that could be precarious, with the Federal Reserve bent on raising U.S. interest rates. Positive sentiment in the American Association of Individual Investors survey has come in above its historical average for four straight weeks, while positioning measures tracked by banks have shown investors recently increasing their exposure to stocks.
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Investors will focus on results from seven tech and other megacap companies, including Apple AAPL.O, Microsoft MSFT.O and Nvidia NVDA.O, whose outsized gains have driven the S&P 500's rise this year. The S&P 500 .SPX has posted a positive return in eight consecutive Julys, and the tech-heavy Nasdaq 100 index .NDX has climbed in July for 15 straight years. First up is next Friday’s U.S. employment report, which will give investors a snapshot of how the economy is faring after 500 basis points of rate hikes from the Fed since last year, its most aggressive tightening in decades.
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15080.0
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2023-07-01 00:00:00 UTC
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WSJ: Goldman Sachs Considers To Exit Partnership With Apple
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AAPL
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https://www.nasdaq.com/articles/wsj%3A-goldman-sachs-considers-to-exit-partnership-with-apple
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(RTTNews) - Goldman Sachs Group Inc. (GS) is considering exiting its partnership with Apple Inc. (AAPL), the Wall Street Journal reported, citing sources familiar with the matter.
The report stated that the bank is in talks with American Express Co. (AXP) to take over its Apple credit card and other services with Apple Inc.
The iPhone-maker and Goldman Sachs started rolling out a virtual credit card in 2019.
Goldman Sachs declined to comment, while Apple didn't immediately respond to a request for comment, report specified.
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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(RTTNews) - Goldman Sachs Group Inc. (GS) is considering exiting its partnership with Apple Inc. (AAPL), the Wall Street Journal reported, citing sources familiar with the matter. The report stated that the bank is in talks with American Express Co. (AXP) to take over its Apple credit card and other services with Apple Inc. The iPhone-maker and Goldman Sachs started rolling out a virtual credit card in 2019.
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(RTTNews) - Goldman Sachs Group Inc. (GS) is considering exiting its partnership with Apple Inc. (AAPL), the Wall Street Journal reported, citing sources familiar with the matter. The report stated that the bank is in talks with American Express Co. (AXP) to take over its Apple credit card and other services with Apple Inc. Goldman Sachs declined to comment, while Apple didn't immediately respond to a request for comment, report specified.
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(RTTNews) - Goldman Sachs Group Inc. (GS) is considering exiting its partnership with Apple Inc. (AAPL), the Wall Street Journal reported, citing sources familiar with the matter. The report stated that the bank is in talks with American Express Co. (AXP) to take over its Apple credit card and other services with Apple Inc. Goldman Sachs declined to comment, while Apple didn't immediately respond to a request for comment, report specified.
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(RTTNews) - Goldman Sachs Group Inc. (GS) is considering exiting its partnership with Apple Inc. (AAPL), the Wall Street Journal reported, citing sources familiar with the matter. The report stated that the bank is in talks with American Express Co. (AXP) to take over its Apple credit card and other services with Apple Inc. The iPhone-maker and Goldman Sachs started rolling out a virtual credit card in 2019.
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15081.0
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2023-07-01 00:00:00 UTC
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Does Meta Have a Chance Against Apple in VR?
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AAPL
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https://www.nasdaq.com/articles/does-meta-have-a-chance-against-apple-in-vr
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Apple (NASDAQ: AAPL) doesn't release its Vision Pro headset until next year, but it's already staking out a different position in the market than Meta Platforms (NASDAQ: META). Meta will focus on gaming and social applications, while Apple can go high-end with real productivity use cases. In this video, Travis Hoium covers who has the best chance of winning.
*Stock prices used were end-of-day prices of June 26, 2023. The video was published on June 28, 2023.
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 June 26, 2023
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. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple and Meta Platforms. 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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Apple (NASDAQ: AAPL) doesn't release its Vision Pro headset until next year, but it's already staking out a different position in the market than Meta Platforms (NASDAQ: META). Meta will focus on gaming and social applications, while Apple can go high-end with real productivity use cases. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple (NASDAQ: AAPL) doesn't release its Vision Pro headset until next year, but it's already staking out a different position in the market than Meta Platforms (NASDAQ: META). See the 10 stocks *Stock Advisor returns as of June 26, 2023 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. The Motley Fool has positions in and recommends Apple and Meta Platforms.
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Apple (NASDAQ: AAPL) doesn't release its Vision Pro headset until next year, but it's already staking out a different position in the market than Meta Platforms (NASDAQ: META). See the 10 stocks *Stock Advisor returns as of June 26, 2023 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. The Motley Fool has positions in and recommends Apple and Meta Platforms.
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Apple (NASDAQ: AAPL) doesn't release its Vision Pro headset until next year, but it's already staking out a different position in the market than Meta Platforms (NASDAQ: META). In this video, Travis Hoium covers who has the best chance of winning. * 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!
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15082.0
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2023-07-01 00:00:00 UTC
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Is Apple the Best Warren Buffett Stock to Buy Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-apple-the-best-warren-buffett-stock-to-buy-right-now
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Of all the stocks that Warren Buffett's Berkshire Hathaway owns, few are regarded as highly as Apple (NASDAQ: AAPL), which makes up nearly half of Berkshire's portfolio. Furthermore, the conglomerate appears comfortable loading up on the stock, as Berkshire purchased an additional 20 million shares during the first quarter, increasing its stake by about 2%.
That was only one of six stocks Berkshire purchased in Q1, so clearly, Berkshire sees some value. But is it really the best Buffett stock to purchase right now? Let's find out.
Apple's iPhones are the primary business driver
Apple's products have taken over the personal consumer electronics segment in the U.S. With a 53% market share in the U.S., Apple now holds the majority of this market. Furthermore, 79% of consumers age 18 to 24 prefer Apple's operating system to Android.
It's not hard to extrapolate that preference to younger generations, which means that most new users will likely gravitate toward Apple products as they age. That's a slow-moving catalyst, but it is one to watch over the next decade.
A shorter-term trend is the upgrade cycle. Apple's iPhone sales have been relatively steady over the past few quarters, with Apple's latest quarter (the fiscal second quarter, ended April 1) only seeing a 1% rise in iPhone sales. Still, this slight rise was enough for Apple to notch a new record Q2 in iPhone sales.
But where is the growth? If more consumers are switching to Apple from Android, plus a new generation is much more likely to choose Apple products, it should be putting up better growth numbers. The answer is likely that most people haven't upgraded their phones in a few years.
While performance jumps from year to year used to be massive, that's no longer the case. As a result, consumers can hold on to their phones for a little bit longer. Plus, with inflation pinching everyone's wallets, a new phone can likely wait for a year. As a result, there could be a wave of people upgrading their phones over the next few cycles, which would be a significant growth driver for the company.
However, does that still justify its stock price?
The stock is too expensive for the growth it delivers
Apple's stock is very expensive and is quickly approaching the highs last reached right before tech crashed in late 2021.
AAPL PE Ratio data by YCharts
However, in 2021, Apple was at least growing at a respectable pace. Now its revenue is shrinking, yet somehow it deserves to trade at a premium? That doesn't make a whole lot of sense.
Even if you factor in forward-looking guidance, Apple is only expected to deliver $5.98 in earnings during fiscal year 2023. In fiscal 2024, revenue is only expected to rise by 6.5%, with $6.57 in earnings. That values Apple's stock at 29 times fiscal 2024 earnings -- a costly price for a company that is hardly growing its revenue or earnings.
As for the question: "Is Apple the best Buffett stock to buy right now?" My answer would be a resounding no. Apple's stock isn't anywhere close to reasonably valued and doesn't put up the growth to justify the price tag.
Although Apple's products dominate the market, the company is butting up against its sheer size, making it difficult to produce meaningful growth. Until Apple's valuation falls to a mid-20s price-to-earnings ratio or the growth picks up to faster than market pace, I think Apple is a stock that investors should hold rather than buy.
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 June 26, 2023
Keithen Drury 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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Of all the stocks that Warren Buffett's Berkshire Hathaway owns, few are regarded as highly as Apple (NASDAQ: AAPL), which makes up nearly half of Berkshire's portfolio. AAPL PE Ratio data by YCharts However, in 2021, Apple was at least growing at a respectable pace. Furthermore, the conglomerate appears comfortable loading up on the stock, as Berkshire purchased an additional 20 million shares during the first quarter, increasing its stake by about 2%.
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Of all the stocks that Warren Buffett's Berkshire Hathaway owns, few are regarded as highly as Apple (NASDAQ: AAPL), which makes up nearly half of Berkshire's portfolio. AAPL PE Ratio data by YCharts However, in 2021, Apple was at least growing at a respectable pace. That values Apple's stock at 29 times fiscal 2024 earnings -- a costly price for a company that is hardly growing its revenue or earnings.
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Of all the stocks that Warren Buffett's Berkshire Hathaway owns, few are regarded as highly as Apple (NASDAQ: AAPL), which makes up nearly half of Berkshire's portfolio. AAPL PE Ratio data by YCharts However, in 2021, Apple was at least growing at a respectable pace. Apple's iPhones are the primary business driver Apple's products have taken over the personal consumer electronics segment in the U.S. With a 53% market share in the U.S., Apple now holds the majority of this market.
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Of all the stocks that Warren Buffett's Berkshire Hathaway owns, few are regarded as highly as Apple (NASDAQ: AAPL), which makes up nearly half of Berkshire's portfolio. AAPL PE Ratio data by YCharts However, in 2021, Apple was at least growing at a respectable pace. The answer is likely that most people haven't upgraded their phones in a few years.
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15083.0
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2023-07-01 00:00:00 UTC
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Unveiling the Dark Side of Apple's Walled Garden
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https://www.nasdaq.com/articles/unveiling-the-dark-side-of-apples-walled-garden
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Apple (NASDAQ: AAPL) makes tens of billions of dollars per year from the App Store, but it controls it with an iron fist. That reduces developer flexibility, and Jack Dorsey's new app is being pulled from the store in an escalating squabble. In this video, Travis Hoium covers why this will be a challenge for Apple in the long term.
*Stock prices used were end-of-day prices of June 28, 2023. The video was published on June 28, 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 June 26, 2023
Travis Hoium has positions in Apple and Spotify Technology. The Motley Fool has positions in and recommends Apple, Bitcoin, Netflix, and Spotify Technology. 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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Apple (NASDAQ: AAPL) makes tens of billions of dollars per year from the App Store, but it controls it with an iron fist. That reduces developer flexibility, and Jack Dorsey's new app is being pulled from the store in an escalating squabble. The Motley Fool has positions in and recommends Apple, Bitcoin, Netflix, and Spotify Technology.
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Apple (NASDAQ: AAPL) makes tens of billions of dollars per year from the App Store, but it controls it with an iron fist. In this video, Travis Hoium covers why this will be a challenge for Apple in the long term. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple (NASDAQ: AAPL) makes tens of billions of dollars per year from the App Store, but it controls it with an iron fist. 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.
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Apple (NASDAQ: AAPL) makes tens of billions of dollars per year from the App Store, but it controls it with an iron fist. See the 10 stocks *Stock Advisor returns as of June 26, 2023 Travis Hoium has positions in Apple and Spotify Technology. Their opinions remain their own and are unaffected by The Motley Fool.
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15084.0
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2023-06-30 00:00:00 UTC
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US STOCKS-Wall St rallies as inflation cools, Apple hits $3 trillion market value
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-inflation-cools-apple-hits-%243-trillion-market-value-0
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By Sinéad Carew, Sruthi Shankar and Johann M Cherian
June 30 (Reuters) - Wall Street indexes closed higher on Friday, with the tech-heavy Nasdaq posting its biggest first-half gain in 40 years as inflation showed signs of cooling while Apple returned to a $3 trillion market valuation.
Apple Inc AAPL.Obreached the $3 trillion mark for the first time since January 2022, lifted by growing appetites for growth stocks generally as well as bets the iPhone maker will succeed in new markets.
Investors perked up on signs of cooling U.S. inflation from measures that are closely watched by the Federal Reserve. A Commerce Department report showed the Personal Consumption Expenditures (PCE) index advanced 3.8% versus April's 4.3%. Excluding volatile food and energy, the core PCE index gained 0.3%, down from 0.4% in the previous month.
The data fueled hopes the Fed could be near the end of its rate-hiking cycle. It helped that Treasury yields fell in response to cooling inflation, said Burns McKinney, portfolio manager at NFJ Investment Group in Dallas, Texas.
"Everything is going up because you're seeing the economy cooling but not that much. The Fed might have a better-than-we-thought shot of threading the needle and cooling inflation without killing the economy in the process," said McKinney.
The money manager said he did not think the Fed can dampen inflation without causing a recession, yet "the chances are going up."
According to preliminary data, the S&P 500 .SPX gained 53.37 points, or 1.21%, to end at 4,449.81 points, while the Nasdaq Composite .IXIC gained 193.85 points, or 1.43%, to 13,785.18. The Dow Jones Industrial Average .DJI rose 278.00 points, or 0.81%, to 34,400.42.
The Nasdaq composite registered its strongest first-half performance in 40 years while the Nasdaq 100 index .NDX of top technology stocks boasted its biggest first half gain on record.
The S&P 500's growth index .IGX rose and investor favorites such as Amazon AMZN.O, Microsoft MSFT.O, Alphabet GOOGL.O and Nvidia NVDA.O were all extending a blistering rally fueled by strong earnings and a buzz around artificial intelligence.
Small cap stocks were also attracting attention with the Russell 2000 index .RUT registering its fifth straight day of gains, its longest winning streak since the five sessions ending March 3.
Still, traders were pricing in an 86.8% chance that the Fed will hike rates by 25 basis points to 5.25%-5.50% range in its July meeting, according to CMEGroup's Fedwatch tool, down slightly from the 89.3% on Thursday.
Hawkish remarks from Fed Chair Jerome Powell and strong economic data earlier this week boosted bets the Fed will keep hiking rates, but stock markets took comfort in signs of strength in the U.S. economy.
The CBOE Market Volatility Index .VIX, Wall Street's fear gauge, earlier slipped to a one-week low at 12.96points.
Among single stocks, Nike Inc NKE.N fell after it forecast first-quarter revenue below Wall Street expectations.
Carnival Corp CCL.Nshares jumped after Jefferies upgraded the cruise operator's stock to "buy" from "hold".
Strong first half for U.S. stocks https://tmsnrt.rs/3r8pb9R
(Reporting by Sinéad Carew in New York, Sruthi Shankar, Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Shinjini Ganguli 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 Inc AAPL.Obreached the $3 trillion mark for the first time since January 2022, lifted by growing appetites for growth stocks generally as well as bets the iPhone maker will succeed in new markets. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 30 (Reuters) - Wall Street indexes closed higher on Friday, with the tech-heavy Nasdaq posting its biggest first-half gain in 40 years as inflation showed signs of cooling while Apple returned to a $3 trillion market valuation. The S&P 500's growth index .IGX rose and investor favorites such as Amazon AMZN.O, Microsoft MSFT.O, Alphabet GOOGL.O and Nvidia NVDA.O were all extending a blistering rally fueled by strong earnings and a buzz around artificial intelligence.
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Apple Inc AAPL.Obreached the $3 trillion mark for the first time since January 2022, lifted by growing appetites for growth stocks generally as well as bets the iPhone maker will succeed in new markets. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 30 (Reuters) - Wall Street indexes closed higher on Friday, with the tech-heavy Nasdaq posting its biggest first-half gain in 40 years as inflation showed signs of cooling while Apple returned to a $3 trillion market valuation. The Nasdaq composite registered its strongest first-half performance in 40 years while the Nasdaq 100 index .NDX of top technology stocks boasted its biggest first half gain on record.
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Apple Inc AAPL.Obreached the $3 trillion mark for the first time since January 2022, lifted by growing appetites for growth stocks generally as well as bets the iPhone maker will succeed in new markets. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 30 (Reuters) - Wall Street indexes closed higher on Friday, with the tech-heavy Nasdaq posting its biggest first-half gain in 40 years as inflation showed signs of cooling while Apple returned to a $3 trillion market valuation. According to preliminary data, the S&P 500 .SPX gained 53.37 points, or 1.21%, to end at 4,449.81 points, while the Nasdaq Composite .IXIC gained 193.85 points, or 1.43%, to 13,785.18.
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Apple Inc AAPL.Obreached the $3 trillion mark for the first time since January 2022, lifted by growing appetites for growth stocks generally as well as bets the iPhone maker will succeed in new markets. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 30 (Reuters) - Wall Street indexes closed higher on Friday, with the tech-heavy Nasdaq posting its biggest first-half gain in 40 years as inflation showed signs of cooling while Apple returned to a $3 trillion market valuation. According to preliminary data, the S&P 500 .SPX gained 53.37 points, or 1.21%, to end at 4,449.81 points, while the Nasdaq Composite .IXIC gained 193.85 points, or 1.43%, to 13,785.18.
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15085.0
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2023-06-30 00:00:00 UTC
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Wall Street Finishes a Strong First Half of 2023. What's Next?
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https://www.nasdaq.com/articles/wall-street-finishes-a-strong-first-half-of-2023.-whats-next
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Investors were in a good mood on the last day of June, and major market indexes pushed their way higher by as much as 1.5%. With the gains, the Nasdaq Composite (NASDAQINDEX: ^IXIC), S&P 500 (SNPINDEX: ^GSPC), and Dow Jones Industrial Average (DJINDICES: ^DJI) all posted solid returns for the first half of the year, albeit gains that were highly concentrated in certain parts of the market.
Yet with the first six months of 2023 in the books, investors always look forward to what the future will bring. Even after a strong start to the year, some market participants still wonder whether the bear market is truly over. Below, you'll learn more about how the first half went and what could lie ahead for stock market investors.
Big gains for big stocks
Gains for major stock indexes were quite impressive in some cases. The Nasdaq led the way higher in terms of percentage gains, while the Dow lagged behind but still posted a modest advance.
INDEX
1ST HALF PERCENTAGE CHANGE
1ST HALF POINT CHANGE
Dow
+3.8%
+1,260
S&P 500
+15.9%
+611
Nasdaq
+31.7%
+3,321
Data source: Yahoo! Finance.
Indeed, the Nasdaq's advance was its best first-half performance in 40 years. That's not too surprising when you look at the best performers among mega-cap stocks:
Semiconductor chipmaker Nvidia (NASDAQ: NVDA) posted an advance of 189% during the first half of 2023, buoyed by extremely high demand for its graphics processing chips and other products as enterprise customers try to bulk up their technological firepower to make the best use of new tools like generative artificial intelligence and machine learning.
Meta Platforms (NASDAQ: META) posted a 138% gain. The social media giant came into the year with investors worried that CEO Mark Zuckerberg wouldn't have the discipline to cut back on his ambitious plans for metaverse development. However, with Zuckerberg choosing in the end to make 2023 a "year of efficiency," shareholders were quite pleased that Meta chose to concentrate on its more obvious core initiatives while maintaining at least a modicum of control on spending on longer-term projects.
Lastly, electric vehicle (EV) pioneer Tesla (NASDAQ: TSLA) climbed 113% in the first half of 2023. Price cuts toward the end of 2022 had raised concerns among investors that demand for Tesla's EVs might be under pressure given adverse macroeconomic conditions. However, the EV company benefited from favorable laws that extended tax incentives for purchasers, and deals with rival automakers to gain access to Tesla's Supercharger network highlighted what could become a lucrative second source of revenue growth for the company.
Other companies also played a role, and many of them were among the biggest businesses in the stock market. Apple (NASDAQ: AAPL) celebrated a nearly 50% rise in the first half of 2023 by achieving a new milestone on the last day of the period, as its market cap climbed back above the $3 trillion mark.
Can stocks keep climbing?
Trying to focus on what will happen in any six-month period of the stock market is largely a futile exercise. Some analysts are worried that the big move in certain stocks, particularly within the Nasdaq, could be unsustainable. Yet market historians would be the first to point out that market rallies can go on a lot longer than many would consider to be reasonable.
There's still a lot of uncertainty about the future path of the global economy. So far, economic growth has been extremely resilient, avoiding any hint of a coming recession. Yet the bond market is still priced as though a recession were imminent, and the Federal Reserve seems resolute in its intent to defeat inflation at any cost.
Long-term investors should stick to their strategies and not get bogged down with short-term considerations. Regardless of what happens to markets in the rest of 2023, the stock market remains an attractive place to put money to work over the next 10 years and beyond.
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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. Dan Caplinger has positions in Apple. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, 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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Apple (NASDAQ: AAPL) celebrated a nearly 50% rise in the first half of 2023 by achieving a new milestone on the last day of the period, as its market cap climbed back above the $3 trillion mark. That's not too surprising when you look at the best performers among mega-cap stocks: Semiconductor chipmaker Nvidia (NASDAQ: NVDA) posted an advance of 189% during the first half of 2023, buoyed by extremely high demand for its graphics processing chips and other products as enterprise customers try to bulk up their technological firepower to make the best use of new tools like generative artificial intelligence and machine learning. However, with Zuckerberg choosing in the end to make 2023 a "year of efficiency," shareholders were quite pleased that Meta chose to concentrate on its more obvious core initiatives while maintaining at least a modicum of control on spending on longer-term projects.
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Apple (NASDAQ: AAPL) celebrated a nearly 50% rise in the first half of 2023 by achieving a new milestone on the last day of the period, as its market cap climbed back above the $3 trillion mark. Big gains for big stocks Gains for major stock indexes were quite impressive in some cases. Meta Platforms (NASDAQ: META) posted a 138% gain.
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Apple (NASDAQ: AAPL) celebrated a nearly 50% rise in the first half of 2023 by achieving a new milestone on the last day of the period, as its market cap climbed back above the $3 trillion mark. With the gains, the Nasdaq Composite (NASDAQINDEX: ^IXIC), S&P 500 (SNPINDEX: ^GSPC), and Dow Jones Industrial Average (DJINDICES: ^DJI) all posted solid returns for the first half of the year, albeit gains that were highly concentrated in certain parts of the market. Big gains for big stocks Gains for major stock indexes were quite impressive in some cases.
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Apple (NASDAQ: AAPL) celebrated a nearly 50% rise in the first half of 2023 by achieving a new milestone on the last day of the period, as its market cap climbed back above the $3 trillion mark. Big gains for big stocks Gains for major stock indexes were quite impressive in some cases. Meta Platforms (NASDAQ: META) posted a 138% gain.
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15086.0
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2023-06-30 00:00:00 UTC
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Wall St Week Ahead-After first-half rally, stocks' July winning streak on the line
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-after-first-half-rally-stocks-july-winning-streak-on-the-line
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By Lewis Krauskopf
NEW YORK, June 30 (Reuters) - A U.S. stocks rally is cruising into a month that has proven strong in recent years, though equities must navigate employment data and an earnings season that could be precarious, with the Federal Reserve bent on raising U.S. interest rates.
The S&P 500 defied recession fears and a U.S. banking crisis to notch a 15.9% gain in the first half. The Nasdaq Composite .IXIC powered ahead 31.7% for its biggest first-half increase in four decades.
Investors betting the upward trend will continue over the next few weeks have recent history on their side. The S&P 500 .SPX has posted a positive return in eight consecutive Julys, and the tech-heavy Nasdaq 100 index .NDX has climbed in July for 15 straight years.
"We have had a pretty resilient market in the first half of this year,” said Mona Mahajan, senior investment strategist at Edward Jones. “The market needs one big question answered, and that is what does the economy look like in the back half of the year.”
Several indicators show growing optimism about equities. Positive sentiment in the American Association of Individual Investors survey has come in above its historical average for four straight weeks, while positioning measures tracked by banks have shown investors recently increasing their exposure to stocks.
The Cboe Volatility Index .VIX, which measures investor demand for protection against stock swings, recently hit its lowest level since early 2020.
At the same time, July brings its share of potentially market-moving events. First up is next Friday’s U.S. employment report, which will give investors a snapshot of how the economy is faring after 500 basis points of rate hikes from the Fed since last year, its most aggressive tightening in decades.
Signs of continued solid job growth could reinforce a view that has helped boost markets this year: that the U.S. economy can avoid a severe recession despite the Fed’s tightening.
"The labor market is probably going to end up proving to be the big catalyst for what may happen market-wise and also monetary policy wise," said Omar Aguilar, chief executive officer and chief investment officer of Schwab Asset Management.
Second-quarter corporate results will kick off the following week. S&P 500 companies are expected to post an overall drop in earnings of 5.7% from the year-earlier period, according to Refinitiv IBES.
Investors will focus on results from seven tech and other megacap companies, including Apple AAPL.O, Microsoft MSFT.O and Nvidia NVDA.O, whose outsized gains have driven the S&P 500's rise this year.
“To the degree the Magnificent Seven has been carrying this..., those are the multiples most likely to get hit with any sort of warning, any sort of negative announcement," said John Lynch, chief investment officer for Comerica Wealth Management.
The consumer price index report arrives on July 12, a crucial read on inflation before the Fed's July 26 policy decision. The U.S. central bank held rates steady in June and has signaled two more increases are coming this year, including one widely expected in July.
While stocks have so far taken policymakers’ projections of higher rates in stride, that could change if bond yields continue to rise. Benchmark yields recently hit three-month highs, with the 10-year U.S. Treasury yield last around 3.8%, well over double where it stood at the end of 2021.
Rising yields generally dull the allure of stocks compared to bonds, but in recent months equity valuations have still climbed.
"At some point, this move in interest rates has got to have some consequences for the markets," Matt Maley, chief market strategist at Miller Tabak, said in a note on Friday.
Those doubts could stem from concern about economic fallout from rate hikes.
Analysts at UBS Global Wealth Management said in a recent note the likelihood of a recession hinges most on monetary policy becoming more restrictive, an eventuality stocks are not priced for.
"With stocks already priced for the near perfection of a soft landing, we see better risk-reward in high-quality bonds over equities," the UBS analysts wrote.
Strong first half for U.S. stocks https://tmsnrt.rs/3NB6LpW
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
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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Investors will focus on results from seven tech and other megacap companies, including Apple AAPL.O, Microsoft MSFT.O and Nvidia NVDA.O, whose outsized gains have driven the S&P 500's rise this year. By Lewis Krauskopf NEW YORK, June 30 (Reuters) - A U.S. stocks rally is cruising into a month that has proven strong in recent years, though equities must navigate employment data and an earnings season that could be precarious, with the Federal Reserve bent on raising U.S. interest rates. First up is next Friday’s U.S. employment report, which will give investors a snapshot of how the economy is faring after 500 basis points of rate hikes from the Fed since last year, its most aggressive tightening in decades.
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Investors will focus on results from seven tech and other megacap companies, including Apple AAPL.O, Microsoft MSFT.O and Nvidia NVDA.O, whose outsized gains have driven the S&P 500's rise this year. The S&P 500 .SPX has posted a positive return in eight consecutive Julys, and the tech-heavy Nasdaq 100 index .NDX has climbed in July for 15 straight years. Positive sentiment in the American Association of Individual Investors survey has come in above its historical average for four straight weeks, while positioning measures tracked by banks have shown investors recently increasing their exposure to stocks.
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Investors will focus on results from seven tech and other megacap companies, including Apple AAPL.O, Microsoft MSFT.O and Nvidia NVDA.O, whose outsized gains have driven the S&P 500's rise this year. By Lewis Krauskopf NEW YORK, June 30 (Reuters) - A U.S. stocks rally is cruising into a month that has proven strong in recent years, though equities must navigate employment data and an earnings season that could be precarious, with the Federal Reserve bent on raising U.S. interest rates. Positive sentiment in the American Association of Individual Investors survey has come in above its historical average for four straight weeks, while positioning measures tracked by banks have shown investors recently increasing their exposure to stocks.
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Investors will focus on results from seven tech and other megacap companies, including Apple AAPL.O, Microsoft MSFT.O and Nvidia NVDA.O, whose outsized gains have driven the S&P 500's rise this year. The S&P 500 .SPX has posted a positive return in eight consecutive Julys, and the tech-heavy Nasdaq 100 index .NDX has climbed in July for 15 straight years. First up is next Friday’s U.S. employment report, which will give investors a snapshot of how the economy is faring after 500 basis points of rate hikes from the Fed since last year, its most aggressive tightening in decades.
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15087.0
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2023-06-30 00:00:00 UTC
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Soft Inflation Data Confirms New Bull Market in Tech Stocks
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AAPL
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https://www.nasdaq.com/articles/soft-inflation-data-confirms-new-bull-market-in-tech-stocks
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In case you haven’t noticed, tech stocks are soaring this year.
Thanks to euphoria surrounding artificial intelligence, the tech-heavy Nasdaq is set to rise more than 30% in the first half of 2023. That will mark one of its best first-half performances ever!
A lot of folks missed this rally. Several surveys suggest a ton of retail traders and even hedge fund managers were sitting on the sidelines while tech stocks soared over the past six months.
Those folks may be feeling like they missed out on the tech surge.
But they didn’t.
This party is just getting started.
Fed Pauses Lead Tech Stocks to Rally
The simple reality is that inflation is crashing right now, which means the U.S. Federal Reserve should be done hiking interest rates. Whenever the Fed ends a rate-hiking campaign, tech stocks always soar. And they tend to soar for a very long time.
The latest inflation data hit the tape this morning, and it was super-soft. That’s why tech stocks are soaring today.
The personal consumption expenditures index (PCE) for May dropped to 3.8%, down 50 basis points from April’s reading. At that pace, PCE inflation will be back to “normal” pre-pandemic ranges by late summer.
Recall: This is the Fed’s preferred inflation measure. It will be back to normal in a month or two, and the Fed won’t meet again for another month.
In other words, by the time the central bank next meets, its preferred inflation measure may be back to normal levels.
Why hike again at that point?
We don’t think it will.
Inflation Is Dead
The Fed is done with this rate-hiking cycle because it has completely won the fight against inflation. Any more rate hikes would just be overkill –and that’s a dangerous game when it comes to the U.S. economy and an increasingly fragile labor market.
That provides a very bullish read for stocks.
Did you know that every time the Fed has ended a rate-hiking campaign over the past 50 years, stocks rallied?
It’s true. And the rallies often weren’t small. See the chart below.
But here’s the really exciting part. After the Fed wraps up a rate-hiking campaign, tech stocks don’t just rally with the rest of the market – they tend to absolutely soar!
When the Fed paused its rate-hiking campaign in March 1980, the Nasdaq jumped 37% over the next year.
When it paused in August 1984, the Nasdaq popped 16% over the next year.
The Fed pause of February 1989 was followed by a ~20% rally in tech stocks over the following few months. The 1995 pause led to a 39% surge in tech stocks a year later. And the pauses in 2006 and 2018 led to ~20% and ~40% rallies in tech stocks over the following year, respectively.
Fed pauses systematically spark year-long tech stock rallies.
The Tailwinds Powering Tech Stocks Higher
But when a Fed pause meets a new technological paradigm shift, the rally in tech stocks tends to last much longer than a year.
Consider what happened in 1995.
At the time, the internet was emerging as a promising technological paradigm shift with the potential to radically improve the world’s productivity. Then, in February of that year, the Fed paused its rate-hiking campaign. The combination of a breakthrough emerging tech and the Fed pause led to a 40% surge in tech stocks over the next year.
But the party didn’t stop there. Tech stocks kept rocking and rolling throughout 1996, ‘97, ‘98, and ‘99, culminating in a ~450% rally over five years!
And today, we have the same exact setup with AI.
Artificial intelligence is emerging as a promising technological paradigm shift with the potential to radically improve the world’s productivity. The Fed has paused its rate-hiking campaign. And this combination should mark the start of a multi-year tech bull market surge.
Indeed, it looks like tech stocks are retracting their steps from the early days of the dot-com boom.
The evidence here is pretty clear.
Yes, tech stocks have been on fire. But this party is just getting started. Don’t miss out on the fun.
The Final Word
What better way to invest in the AI Revolution than by investing in the firm that started it all?
The whole AI buzz started in late 2022, when a startup by the name of OpenAI launched ChatGPT. Since then, the firm’s valuation has doubled, and it has scored huge partnerships with Intuit, Moody’s, and more.
Though because the company isn’t publicly traded, most retail investors missed out on OpenAI’s explosive rise over the past few months.
But I discovered a loophole that allows you to invest in OpenAI right now.
Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss.
Learn all about that loophole.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Soft Inflation Data Confirms New Bull Market in Tech Stocks 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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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. Several surveys suggest a ton of retail traders and even hedge fund managers were sitting on the sidelines while tech stocks soared over the past six months. Fed Pauses Lead Tech Stocks to Rally The simple reality is that inflation is crashing right now, which means the U.S. Federal Reserve should be done hiking interest rates.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. Did you know that every time the Fed has ended a rate-hiking campaign over the past 50 years, stocks rallied? The Tailwinds Powering Tech Stocks Higher But when a Fed pause meets a new technological paradigm shift, the rally in tech stocks tends to last much longer than a year.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In case you haven’t noticed, tech stocks are soaring this year. The Tailwinds Powering Tech Stocks Higher But when a Fed pause meets a new technological paradigm shift, the rally in tech stocks tends to last much longer than a year.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. The Fed pause of February 1989 was followed by a ~20% rally in tech stocks over the following few months. The Tailwinds Powering Tech Stocks Higher But when a Fed pause meets a new technological paradigm shift, the rally in tech stocks tends to last much longer than a year.
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2023-06-30 00:00:00 UTC
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After Hours Most Active for Jun 30, 2023 : CSGP, AAPL, QQQ, PCG, AMZN, SCHW, BAC, PFE, INTC, GOOGL, KO, T
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jun-30-2023-%3A-csgp-aapl-qqq-pcg-amzn-schw-bac-pfe-intc-googl
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The NASDAQ 100 After Hours Indicator is down -5.44 to 15,173.77. The total After hours volume is currently 125,321,521 shares traded.
The following are the most active stocks for the after hours session:
CoStar Group, Inc. (CSGP) is -0.51 at $88.49, with 7,469,799 shares traded. As reported by Zacks, the current mean recommendation for CSGP is in the "buy range".
Apple Inc. (AAPL) is -0.14 at $193.83, with 4,588,280 shares traded., following a 52-week high recorded in today's regular session.
Invesco QQQ Trust, Series 1 (QQQ) is -0.36 at $369.06, with 3,536,527 shares traded. This represents a 45.15% increase from its 52 Week Low.
Pacific Gas & Electric Co. (PCG) is -0.05 at $17.23, with 2,981,485 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.29 at $130.07, with 2,606,156 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
The Charles Schwab Corporation (SCHW) is -0.07 at $56.61, with 2,601,963 shares traded. As reported by Zacks, the current mean recommendation for SCHW is in the "buy range".
Bank of America Corporation (BAC) is -0.01 at $28.68, with 2,575,588 shares traded. BAC's current last sale is 81.94% of the target price of $35.
Pfizer, Inc. (PFE) is +0.02 at $36.70, with 2,350,660 shares traded. PFE's current last sale is 81.56% of the target price of $45.
Intel Corporation (INTC) is -0.05 at $33.39, with 2,325,622 shares traded. INTC's current last sale is 106% of the target price of $31.5.
Alphabet Inc. (GOOGL) is -0.19 at $119.51, with 2,082,782 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Coca-Cola Company (The) (KO) is -0.01 at $60.21, with 1,907,958 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
AT&T Inc. (T) is +0.02 at $15.97, with 1,851,586 shares traded. As reported by Zacks, the current mean recommendation for T is in the "buy range".
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 -0.14 at $193.83, with 4,588,280 shares traded., following a 52-week high recorded in today's regular session. As reported by Zacks, the current mean recommendation for CSGP is in the "buy range". As reported by Zacks, the current mean recommendation for SCHW is in the "buy range".
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Apple Inc. (AAPL) is -0.14 at $193.83, with 4,588,280 shares traded., following a 52-week high recorded in today's regular session. As reported by Zacks, the current mean recommendation for CSGP is in the "buy range". As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
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Apple Inc. (AAPL) is -0.14 at $193.83, with 4,588,280 shares traded., following a 52-week high recorded in today's regular session. The total After hours volume is currently 125,321,521 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
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Apple Inc. (AAPL) is -0.14 at $193.83, with 4,588,280 shares traded., following a 52-week high recorded in today's regular session. The NASDAQ 100 After Hours Indicator is down -5.44 to 15,173.77. The following are the most active stocks for the after hours session:
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15089.0
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2023-06-30 00:00:00 UTC
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Netflix Stock (NASDAQ:NFLX) Could be a Huge Winner if VR Takes Off
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AAPL
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https://www.nasdaq.com/articles/netflix-stock-nasdaq%3Anflx-could-be-a-huge-winner-if-vr-takes-off
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nan
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nan
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Top video-streamer Netflix (NASDAQ:NFLX) has been on a hot run, thanks in part to promising recent quarters and some pricing adjustments. As virtual reality (VR) takes off again, I'd look for Netflix to prove itself as an obvious beneficiary as it looks to pioneer new, innovative ways to entertain people from their homes.
Undoubtedly, Netflix stock got ahead of itself in 2021 before things came crashing down. Though shares have been in rally mode for over a year now, I do think the run can be extended if VR is, in fact, poised to become a mainstream technology.
VR's Big Moment May be Close. Netflix Won't be Left Behind.
Indeed, many VR ambitions have been crushed over the years. The hardware has always been a limiting factor stopping the masses from buying VR headsets. Though Meta Platforms (NASDAQ:META) has made its metaverse ambitions clear, an overwhelming majority of consumers have yet to make the dive, partially due to the high cost of a headset but mostly due to the lack of a genuinely mind-blowing experience.
Think about the type of awe that we had when we tried ChatGPT for the very first time or even the sense of magic we experienced from the first Apple (NASDAQ:AAPL) iPhone.
For any consumer product, the cost-versus-capability debate will go on. When it comes to VR, though, I do believe that capability trumps cost. Further, with Apple unveiling its Vision Pro headset (or spatial computer, as it calls it) earlier this month, the firm seems to be betting that people will pay a substantial sum ($3,500 is nothing to sneeze at!) for a truly next-generation experience.
Back to Netflix. The company seems to have lost its way amid the continued maturation of the video-streaming market. It seems like there are too many streaming apps to keep track of these days -- too many options, a limited amount of time, and a budget that is getting more constrained amid macro headwinds.
Regardless, Netflix seems to be holding its own as a leader, and as VR looks to become a prime-time technology, I view Netflix as one of the potential beneficiaries as it looks to explore new ways of creating immersive entertainment content.
Netflix Stock's Expectations are High as the Valuation Expands Again
With a 46.1 times trailing price-to-earnings multiple, investors expect Netflix to keep on growing. Undoubtedly, there are only so many cost tiers Netflix can serve up, as well as only one time it can shake freeloaders from paying up. Fortunately, VR represents one arena where Netflix can innovate and regain more of the rich growth multiple it used to command when it was one of the priciest members of the FAANG basket.
Many critics questioned Apple's Vision Pro for lacking a "killer app." Should Netflix begin to explore more immersive content that makes viewers the "star of the show," Netflix may very well be one of the "killer apps" that helps make an expensive VR headset worth the price of admission.
Though Netflix doesn't have concrete plans to break into the nascent VR content space, I would not be shocked if it did at some point over the next few years, provided enough consumers buy headsets. Indeed, Netflix could gain as Meta and Apple duke it out in the headset space.
Stranger Things VR Could be a Sign of Things to Come
Recently, Netflix released a Stranger Things VR trailer. It appears like any VR game but could be a glimpse of what to expect from the company in the distant future. Immersive games and experiences could be key to convincing your average consumer to purchase a VR headset.
Netflix is a newcomer when it comes to video gaming, but with strong brands and a willingness to explore new entertainment media, I do not doubt its ability to succeed in gaming.
However, it has been a rather slow and underwhelming start with the company's mobile gaming push. Perhaps VR, rather than mobile, is the place where Netflix can really see its gaming business take it to the next level.
Is NFLX Stock a Buy, According to Analysts?
Turning to Wall Street, NFLX stock comes in as a Moderate Buy. Out of 35 analyst ratings, there are 19 Buys, 13 Holds, and three Sells.
The average Netflix stock price target is $406.26, implying downside potential of 7.8%. Analyst price targets range from a low of $230.00 per share to a high of $535.00 per share.
The Bottom Line on Netflix Stock
Netflix stock's run could be far from over if it's able to keep innovating and trying new things in this pivotal moment for new-generation technologies like AI and VR.
As AI and AR technologies ascend, I do view Netflix as just one of the potential winners as its content moves from the flatscreen to three-dimensional realms.
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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Think about the type of awe that we had when we tried ChatGPT for the very first time or even the sense of magic we experienced from the first Apple (NASDAQ:AAPL) iPhone. Further, with Apple unveiling its Vision Pro headset (or spatial computer, as it calls it) earlier this month, the firm seems to be betting that people will pay a substantial sum ($3,500 is nothing to sneeze at!) Fortunately, VR represents one arena where Netflix can innovate and regain more of the rich growth multiple it used to command when it was one of the priciest members of the FAANG basket.
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Think about the type of awe that we had when we tried ChatGPT for the very first time or even the sense of magic we experienced from the first Apple (NASDAQ:AAPL) iPhone. Top video-streamer Netflix (NASDAQ:NFLX) has been on a hot run, thanks in part to promising recent quarters and some pricing adjustments. Many critics questioned Apple's Vision Pro for lacking a "killer app."
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Think about the type of awe that we had when we tried ChatGPT for the very first time or even the sense of magic we experienced from the first Apple (NASDAQ:AAPL) iPhone. Regardless, Netflix seems to be holding its own as a leader, and as VR looks to become a prime-time technology, I view Netflix as one of the potential beneficiaries as it looks to explore new ways of creating immersive entertainment content. Should Netflix begin to explore more immersive content that makes viewers the "star of the show," Netflix may very well be one of the "killer apps" that helps make an expensive VR headset worth the price of admission.
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Think about the type of awe that we had when we tried ChatGPT for the very first time or even the sense of magic we experienced from the first Apple (NASDAQ:AAPL) iPhone. Regardless, Netflix seems to be holding its own as a leader, and as VR looks to become a prime-time technology, I view Netflix as one of the potential beneficiaries as it looks to explore new ways of creating immersive entertainment content. Is NFLX Stock a Buy, According to Analysts?
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15090.0
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2023-06-30 00:00:00 UTC
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Goldman Sachs may exit partnership with Apple - WSJ
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AAPL
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https://www.nasdaq.com/articles/goldman-sachs-may-exit-partnership-with-apple-wsj
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nan
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nan
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Adds background in paragraphs 4-5
June 30 (Reuters) - Goldman Sachs GS.N is considering exiting its partnership with Apple AAPL.O, the Wall Street Journal reported on Friday, citing sources familiar with the matter.
The iPhone-maker and Goldman Sachs started rolling out a virtual credit card in 2019.
The bank is in talks with American Express AXP.N to take over its Apple credit card and other ventures with the tech giant, the report added.
Apple in March launched its "buy now, pay later" service in the United States enabled through the Mastercard Installments program, with Goldman Sachs as the issuer of the Mastercard payment credential.
Apple credit card, which is made out of titanium and no visible number, currently offers 3% daily cash back to spend or save, Apple's website said. It also offers interest-free monthly installments on purchases of Apple devices.
American Express did not immediately respond to a Reuters request for comment, while Apple and Goldman Sachs declined to comment.
(Reporting by Arshreet Singh and Akash Sriram in Bengaluru; Editing by Shweta Agarwal)
((Arshreet.Singh@thomsonreuters.com; Twitter: https://twitter.com/Arshreets;))
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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Adds background in paragraphs 4-5 June 30 (Reuters) - Goldman Sachs GS.N is considering exiting its partnership with Apple AAPL.O, the Wall Street Journal reported on Friday, citing sources familiar with the matter. The bank is in talks with American Express AXP.N to take over its Apple credit card and other ventures with the tech giant, the report added. (Reporting by Arshreet Singh and Akash Sriram in Bengaluru; Editing by Shweta Agarwal) ((Arshreet.Singh@thomsonreuters.com; Twitter: https://twitter.com/Arshreets;)) 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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Adds background in paragraphs 4-5 June 30 (Reuters) - Goldman Sachs GS.N is considering exiting its partnership with Apple AAPL.O, the Wall Street Journal reported on Friday, citing sources familiar with the matter. The bank is in talks with American Express AXP.N to take over its Apple credit card and other ventures with the tech giant, the report added. Apple credit card, which is made out of titanium and no visible number, currently offers 3% daily cash back to spend or save, Apple's website said.
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Adds background in paragraphs 4-5 June 30 (Reuters) - Goldman Sachs GS.N is considering exiting its partnership with Apple AAPL.O, the Wall Street Journal reported on Friday, citing sources familiar with the matter. Apple credit card, which is made out of titanium and no visible number, currently offers 3% daily cash back to spend or save, Apple's website said. American Express did not immediately respond to a Reuters request for comment, while Apple and Goldman Sachs declined to comment.
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Adds background in paragraphs 4-5 June 30 (Reuters) - Goldman Sachs GS.N is considering exiting its partnership with Apple AAPL.O, the Wall Street Journal reported on Friday, citing sources familiar with the matter. The iPhone-maker and Goldman Sachs started rolling out a virtual credit card in 2019. The bank is in talks with American Express AXP.N to take over its Apple credit card and other ventures with the tech giant, the report added.
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15091.0
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2023-06-30 00:00:00 UTC
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Dow Movers: NKE, AAP
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-nke-aap
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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 1.5%. Year to date, Apple registers a 48.2% gain.
And the worst performing Dow component thus far on the day is Nike, trading down 2.1%. Nike is lower by about 5.1% looking at the year to date performance.
Two other components making moves today are Boeing, trading down 1.1%, and Visa, trading up 1.5% on the day.
VIDEO: Dow Movers: NKE, AAP
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 early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.5%. And the worst performing Dow component thus far on the day is Nike, trading down 2.1%. VIDEO: Dow Movers: NKE, AAP 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 early trading on Friday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.5%. Year to date, Apple registers a 48.2% gain. And the worst performing Dow component thus far on the day is Nike, trading down 2.1%.
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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 1.5%. And the worst performing Dow component thus far on the day is Nike, trading down 2.1%. Two other components making moves today are Boeing, trading down 1.1%, and Visa, trading up 1.5% on the day.
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And the worst performing Dow component thus far on the day is Nike, trading down 2.1%. Nike is lower by about 5.1% looking at the year to date performance. VIDEO: Dow Movers: NKE, AAP 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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15092.0
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2023-06-30 00:00:00 UTC
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GRAPHIC-Six questions facing US stock investors as 2023's second half nears
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AAPL
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https://www.nasdaq.com/articles/graphic-six-questions-facing-us-stock-investors-as-2023s-second-half-nears-0
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nan
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nan
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By Lewis Krauskopf
NEW YORK, June 29 (Reuters) - The U.S. stock market has powered higher in the first half of this year despite numerous obstacles, from banking sector turmoil to recurring doubts about the economy's health.
The S&P 500 .SPX is up 15.9% in 2023 - a rebound that surprised many analysts after equities’ brutal 2022 decline. The tech-heavy Nasdaq Composite .IXIC has gained 31.7%, its best first half in 40 years.
If history is a guide, stocks’ strong start may give them a tailwind in the second half. Since 1945, the S&P 500 went on to climb an average of 8% in the second half of the year when it rose at least 10% in the first six months, according to Sam Stovall, chief investment strategist at CFRA.
Here are six key questions investors are posing as they assess the market's prospects:
WHERE’S THAT RECESSION?
The U.S. economy has proven resilient in the face of the Federal Reserve’s aggressive monetary policy tightening, so far avoiding a recession many forecasters were predicting at the start of 2023.
While a recession is now seen as a less likely scenario this year, economic concerns have not disappeared. A recession probability model run by the New York Federal Reserve based on the Treasury yield curve earlier this month projected a 71% chance of one in the next 12 months.
“The prospect of a soft-landing, at least in investors' minds, has gone from improbable early in the year to now quite possible,” analysts at UBS wrote. “Of course, this positive market scenario can evaporate quickly if inflation and jobs data disappoint.”
Some analysts also worry that estimates of corporate earnings - which are expected to rise 1.4% in 2023 for S&P 500 companies, according to Refinitiv IBES data - will need to be adjusted sharply lower if a downturn arrives.
HOW FAST WILL INFLATION FALL?
The annual rate of inflation has come down by half since hitting 40-year highs last summer yet stands well above the 2% level the Fed would like to see before it begins pulling back on monetary policy tightening. The Fed paused rate hikes this month but is expected to raise rates again in July.
Some investors view moderating inflation combined with resilient growth as a so-called Goldilocks scenario that is favorable to asset prices.
CAN THE RALLY BROADEN?
A handful of megacap names such as Apple Inc AAPL.O and Nvidia Corp NVDA.O are driving the S&P 500’s rally, creating concerns that gains may not be sustainable unless more stocks join in.
While the S&P 500 has gained 15.9% this year, the equal-weight version of the index -- a proxy for the average stock -- has gained about 6%.
The spread between the two indexes is around levels last seen during the dot-com bubble, analysts at HSBC noted in a recent report.
“A concentration of equity returns from the largest companies is very unlikely to continue indefinitely,” the bank's analyst wrote.
WHEN WILL AI BEAR FINANCIAL FRUIT?
Excitement over advances in artificial intelligence has helped push stocks higher and driven up earnings estimates. Investors will watch second-quarter results in coming weeks for clarity on how soon companies expect financial benefits to materialize.
The S&P 500 tech sector .SPLRCT now trades at 27 times forward earnings, according to Refinitiv Datastream. That is above its average of 20.9 times earnings, though well below levels reached during the dot com bubble.
WHERE ARE THE WEAK SPOTS?
The banking sector crisis resulting from Silicon Valley Bank’s failure in March did not end up being the systemic event many had feared, yet investors remain on the lookout for other financial system vulnerabilities that are being exacerbated by the Fed’s most aggressive rate hiking cycle in decades.
One such area is commercial real estate, with concerns stemming from lingering office space vacancies from the pandemic.
CAN EQUITIES COMPETE WITH BONDS AND CASH?
Rising rates have boosted yields on fixed income assets and cash to their highest levels in decades, finally giving investors an alternative to equities. That does not appear to have hobbled stock returns so far this year, but it may dull the allure of equities going forward if rates stay elevated.
The equity risk premium -- which measures the S&P 500's earnings yield against the yield on the 10-year Treasury note -- puts stocks at around their least attractive levels in over a decade, according to Truist Advisory Services.
US stock market's fall and rise https://tmsnrt.rs/3pocasr
Monthly US job growth https://tmsnrt.rs/4327WUR
Fed funds rate vs inflation https://tmsnrt.rs/44hhwEl
Megacap stocks as a percentage of S&P 500 market cap https://tmsnrt.rs/43ZmBBI
Tech sector valuations https://tmsnrt.rs/3NLn9W6
Stock fallout from the banking crisis https://tmsnrt.rs/42XP7SP
Weakening case for stocks versus bonds https://tmsnrt.rs/3CSpM29
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
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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A handful of megacap names such as Apple Inc AAPL.O and Nvidia Corp NVDA.O are driving the S&P 500’s rally, creating concerns that gains may not be sustainable unless more stocks join in. By Lewis Krauskopf NEW YORK, June 29 (Reuters) - The U.S. stock market has powered higher in the first half of this year despite numerous obstacles, from banking sector turmoil to recurring doubts about the economy's health. The annual rate of inflation has come down by half since hitting 40-year highs last summer yet stands well above the 2% level the Fed would like to see before it begins pulling back on monetary policy tightening.
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A handful of megacap names such as Apple Inc AAPL.O and Nvidia Corp NVDA.O are driving the S&P 500’s rally, creating concerns that gains may not be sustainable unless more stocks join in. By Lewis Krauskopf NEW YORK, June 29 (Reuters) - The U.S. stock market has powered higher in the first half of this year despite numerous obstacles, from banking sector turmoil to recurring doubts about the economy's health. The U.S. economy has proven resilient in the face of the Federal Reserve’s aggressive monetary policy tightening, so far avoiding a recession many forecasters were predicting at the start of 2023.
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A handful of megacap names such as Apple Inc AAPL.O and Nvidia Corp NVDA.O are driving the S&P 500’s rally, creating concerns that gains may not be sustainable unless more stocks join in. By Lewis Krauskopf NEW YORK, June 29 (Reuters) - The U.S. stock market has powered higher in the first half of this year despite numerous obstacles, from banking sector turmoil to recurring doubts about the economy's health. The banking sector crisis resulting from Silicon Valley Bank’s failure in March did not end up being the systemic event many had feared, yet investors remain on the lookout for other financial system vulnerabilities that are being exacerbated by the Fed’s most aggressive rate hiking cycle in decades.
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A handful of megacap names such as Apple Inc AAPL.O and Nvidia Corp NVDA.O are driving the S&P 500’s rally, creating concerns that gains may not be sustainable unless more stocks join in. While the S&P 500 has gained 15.9% this year, the equal-weight version of the index -- a proxy for the average stock -- has gained about 6%. “A concentration of equity returns from the largest companies is very unlikely to continue indefinitely,” the bank's analyst wrote.
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15093.0
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2023-06-30 00:00:00 UTC
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Technology Sector Update for 06/30/2023: TSM, AAPL, GOOG, SSYS, NNDM, DM, DDD
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-06-30-2023%3A-tsm-aapl-goog-ssys-nndm-dm-ddd
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nan
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nan
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Tech stocks were rising late Friday, with the Technology Select Sector SPDR Fund (XLK) adding 1.7% and the Philadelphia Semiconductor index gaining 1.8%.
In company news, Taiwan Semiconductor Manufacturing Co.'s (TSM) information technology hardware supplier Kinmax Technology on Friday confirmed it has experienced a data breach by an external group. Taiwan Semiconductor shares were rising 0.4%.
Apple's (AAPL) market capitalization surpassed $3 trillion during Friday's trading session. Shares were rising 2.3%.
Stratasys (SSYS) rejected separate takeover offers from 3D Systems (DDD) and Nano Dimension (NNDM) on Friday while reaffirming its commitment to a $1.8 billion merger agreement with Desktop Metal (DM). Stratasys shares fell 1%.
Alphabet's (GOOG) YouTube is urging users to disable ad blockers or switch to YouTube Premium for an ad-free experience because ad blockers violate the company's terms of service. Alphabet shares rose 0.9%.
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's (AAPL) market capitalization surpassed $3 trillion during Friday's trading session. Tech stocks were rising late Friday, with the Technology Select Sector SPDR Fund (XLK) adding 1.7% and the Philadelphia Semiconductor index gaining 1.8%. Stratasys (SSYS) rejected separate takeover offers from 3D Systems (DDD) and Nano Dimension (NNDM) on Friday while reaffirming its commitment to a $1.8 billion merger agreement with Desktop Metal (DM).
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Apple's (AAPL) market capitalization surpassed $3 trillion during Friday's trading session. In company news, Taiwan Semiconductor Manufacturing Co.'s (TSM) information technology hardware supplier Kinmax Technology on Friday confirmed it has experienced a data breach by an external group. Taiwan Semiconductor shares were rising 0.4%.
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Apple's (AAPL) market capitalization surpassed $3 trillion during Friday's trading session. Tech stocks were rising late Friday, with the Technology Select Sector SPDR Fund (XLK) adding 1.7% and the Philadelphia Semiconductor index gaining 1.8%. In company news, Taiwan Semiconductor Manufacturing Co.'s (TSM) information technology hardware supplier Kinmax Technology on Friday confirmed it has experienced a data breach by an external group.
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Apple's (AAPL) market capitalization surpassed $3 trillion during Friday's trading session. Taiwan Semiconductor shares were rising 0.4%. Shares were rising 2.3%.
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15094.0
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2023-06-30 00:00:00 UTC
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US STOCKS-Wall St rallies as inflation cools, Apple hits $3 trillion market value
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-inflation-cools-apple-hits-%243-trillion-market-value
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nan
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nan
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By Sinéad Carew, Sruthi Shankar and Johann M Cherian
June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its biggest first-half gain in 40 years as inflation showed signs of cooling while Apple returned to a $3 trillion market valuation.
Apple Inc AAPL.Obreached the $3 trillion mark for the first time since January 2022, and was last up 1.76% at $192.90after touching a record high of $193.15. Its shares were lifted by growing appetite for growth stocks generally as well as bets the iPhone maker will succeed in new markets.
Investors perked up on signs of cooling U.S. inflation from measures that are closely watched by the Federal Reserve. A Commerce Department report showed the Personal Consumption Expenditures (PCE) index advanced 3.8% versus April's 4.3%. Excluding volatile food and energy, the core PCE index gained 0.3%, down from 0.4% in the previous month.
"Today is another example of how markets love any slowing of inflationary pressure. We had inflation come in increments lower," said Matt Miskin, co-chief investment strategist, John Hancock Investment Management in Boston.
"Technology stocks are leading the way on the upside which isn't anything new but the thought of disinflation, potentially continuing here into the summer months is helping market finish the quarter strong."
The Dow Jones Industrial Average .DJI rose 318.65 points, or 0.93%, to 34,441.07, the S&P 500 .SPX gained 57.08 points, or 1.30%, to 4,453.52 and the Nasdaq Composite .IXIC added 208.01 points, or 1.53%, to 13,799.34.
The S&P 500's growth index .IGX was up 1.5% and investor favorites such as Amazon AMZN.O, Microsoft MSFT.O, Alphabet GOOGL.O and Nvidia NVDA.O were all extending a blistering rally fueled by strong earnings and a buzz around artificial intelligence.
Still, traders were pricing in an 86.8% chance that the Fed will hike rates by 25 basis points to 5.25%-5.50% range in its July meeting, according to CMEGroup's Fedwatch tool, down slightly from the 89.3% on Thursday.
Hawkish remarks from Fed Chair Jerome Powell and strong economic data earlier this week boosted bets the Fed will keep hiking rates, but stock markets took comfort in signs of strength in the U.S. economy.
The CBOE Market Volatility Index .VIX, Wall Street's fear gauge, earlier slipped to a one-week low at 12.96points and was last down 0.37 points at 13.17.
Among other single stocks, Nike Inc NKE.N was down more than 2% after it forecast first-quarter revenue below Wall Street expectations.
Carnival Corp CCL.Njumped 9% after Jefferies upgraded the cruise operator's stock to "buy" from "hold".
Advancing issues outnumbered declining ones on the NYSE by a 3.48-to-1 ratio; on Nasdaq, a 1.74-to-1 ratio favored advancers.
The S&P 500 posted 73 new 52-week highs and no new lows; the Nasdaq Composite recorded 106 new highs and 63 new lows.
(Reporting by Sruthi Shankar, Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Shinjini Ganguli 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 Inc AAPL.Obreached the $3 trillion mark for the first time since January 2022, and was last up 1.76% at $192.90after touching a record high of $193.15. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its biggest first-half gain in 40 years as inflation showed signs of cooling while Apple returned to a $3 trillion market valuation. "Technology stocks are leading the way on the upside which isn't anything new but the thought of disinflation, potentially continuing here into the summer months is helping market finish the quarter strong."
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Apple Inc AAPL.Obreached the $3 trillion mark for the first time since January 2022, and was last up 1.76% at $192.90after touching a record high of $193.15. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its biggest first-half gain in 40 years as inflation showed signs of cooling while Apple returned to a $3 trillion market valuation. Hawkish remarks from Fed Chair Jerome Powell and strong economic data earlier this week boosted bets the Fed will keep hiking rates, but stock markets took comfort in signs of strength in the U.S. economy.
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Apple Inc AAPL.Obreached the $3 trillion mark for the first time since January 2022, and was last up 1.76% at $192.90after touching a record high of $193.15. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its biggest first-half gain in 40 years as inflation showed signs of cooling while Apple returned to a $3 trillion market valuation. Hawkish remarks from Fed Chair Jerome Powell and strong economic data earlier this week boosted bets the Fed will keep hiking rates, but stock markets took comfort in signs of strength in the U.S. economy.
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Apple Inc AAPL.Obreached the $3 trillion mark for the first time since January 2022, and was last up 1.76% at $192.90after touching a record high of $193.15. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its biggest first-half gain in 40 years as inflation showed signs of cooling while Apple returned to a $3 trillion market valuation. A Commerce Department report showed the Personal Consumption Expenditures (PCE) index advanced 3.8% versus April's 4.3%.
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15095.0
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2023-06-30 00:00:00 UTC
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3 Hidden Gems for Value Investors to Buy Now
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AAPL
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https://www.nasdaq.com/articles/3-hidden-gems-for-value-investors-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s disheartening how the spotlight often falls on a handful of well-known names in the stock market. While it’s understandable why powerhouses like Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) dominate headlines, investors must realize that hidden gems and undervalued stocks can be just as lucrative. After all, many of today’s most popular stocks were once undiscovered treasures that became massive winners for early investors.
However, uncovering these overlooked opportunities is no easy feat. That’s why we’ve rolled up our sleeves and taken on the challenge for you. Our quest has led us to identify three exceptional hidden gem growth stocks that deserve your attention. These potential investments have all the makings of diamonds in the rough, waiting to shine brighter.
So, step away from the ordinary and delve into the extraordinary world of investing, where untapped potential lies in these hidden gems. Join us as we explore the alluring opportunities that await savvy investors like yourself.
Starbucks (SBUX)
Source: monticello / Shutterstock.com
Starbucks (NASDAQ:SBUX), a hidden gem among undervalued stocks, offers valuable investing opportunities for those seeking stocks to buy now. This global powerhouse boasts one of the most powerful consumer brands worldwide. However, its dividend quality often goes unnoticed.
Starbucks has demonstrated a consistent pattern of annual dividend increases since it first introduced its dividend program in 2010. Throughout the years, the company has implemented substantial raises to its dividend payouts. Currently, Starbucks pays a quarterly dividend of 53 cents per share, almost twice its dividend in 2017.
While Starbucks may not have the highest yield at just 2.15%, its unwavering commitment to dividend raises is noteworthy. Coupled with its dominant position in the industry, Starbucks presents abundant potential for passive income.
Despite the formidable obstacles presented by the Covid-19 pandemic, Starbucks has achieved a remarkable resurgence. The company has experienced unprecedented levels of revenue and a consistent upward trend in earnings, signaling a strong recovery.
Although Starbucks may no longer be the red-hot growth stock it once was, it unquestionably belongs among the esteemed blue chip dividend stocks. With ample free cash flow to cover the dividend, the company is well-positioned to sustain its dividend payments. Additionally, its effective expansion of rewards members and mobile ordering further strengthens its ability to drive customer engagement.
Embrace the opportunity to invest in Starbucks: a unique stock combining a globally recognized brand, consistent dividend growth, and a resilient business model. Don’t overlook this gem in the stock market.
Chevron (CVX)
Source: tishomir / Shutterstock.com
The global oil major Chevron (NYSE:CVX) is a dominant player in its industry. It is often treated as a bellwether for the wider industry.
Chevron’s acquisition of PDC Energy for $7.6 billion is expected to increase the company’s total proved reserves by about 10% and enhance its overall reserve life. This strategic move signifies Chevron’s ability to identify hidden gems and undervalued stocks.
Chevron has positioned itself to capitalize on various growth drivers. The Australian liquefied natural gas sector and Gulf of Mexico deep-water production present lucrative opportunities for the company.
A prominent oil and gas industry player, Chevron has expressed its anticipation of a surge in activity within the Permian and DJ basins. This optimistic outlook will serve as a catalyst for the company’s ongoing expansion efforts.
The Permian Basin, located primarily in Texas and New Mexico, is renowned as one of the most prolific oil and gas regions in the United States. Chevron recognizes the immense potential of the Permian Basin, with its vast reserves of hydrocarbon resources. As such, the company foresees an uptick in exploration and production activities in this region, which will likely contribute to its expansion plans.
With a keen focus on value investing, Chevron consistently identifies stock market opportunities with immense potential. Its portfolio boasts a collection of undervalued stocks, making it attractive for investors seeking promising options. Consider Chevron as one of the hidden gems to buy now, given its solid performance and promising prospects in the industry.
Pentair (PNR)
Source: rafapress / Shutterstock.com
Pentair (NYSE:PNR), the water solutions company, has a rich history and it is a hidden gem worth exploring. While its electrical business spun off as nVent in 2018, Pentair remains a promising player in the market.
Demonstrating an unwavering commitment to value investing, the company has achieved the impressive feat of raising its dividend for 47 consecutive years. This exceptional track record has solidified Pentair as a stock worth pursuing.
Pentair’s dividend of $0.88 per share is well-covered and reinforced by projected earnings per share ranging from $3.60 to $3.70 in 2023. This solid financial foundation showcases the company’s stability and potential for investors seeking stocks to buy now.
Admittedly, Pentair faces headwinds primarily due to declining sales within its core pool equipment segment. The company experienced a surge during the pandemic lockdowns as customers invested in their homes. However, a natural correction in demand and rising interest rates have pressured spending, impacting Pentair’s pool revenue expectations.
Nevertheless, CEO John Stauch remains optimistic. He highlights the company’s ongoing transformation initiative aimed at cost-cutting and increasing returns on sales. With strength in its non-residential businesses, such as fluid treatment and commercial water solutions, Pentair has ambitious goals.
The company has set its sights on achieving a return on sales of approximately 23% by 2025, a notable increase from the reported 18.6% return on sales in 2022.
If Pentair achieves its targets and its residential business recovers, investors can anticipate continued dividend growth. The company’s focus on non-residential sectors and cost optimization positions it for long-term success, making it an enticing prospect among hidden gems in the stock market.
On the publication date, Faizan Farooque did not hold (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.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
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The post 3 Hidden Gems for Value Investors to Buy Now 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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While it’s understandable why powerhouses like Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) dominate headlines, investors must realize that hidden gems and undervalued stocks can be just as lucrative. Embrace the opportunity to invest in Starbucks: a unique stock combining a globally recognized brand, consistent dividend growth, and a resilient business model. A prominent oil and gas industry player, Chevron has expressed its anticipation of a surge in activity within the Permian and DJ basins.
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While it’s understandable why powerhouses like Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) dominate headlines, investors must realize that hidden gems and undervalued stocks can be just as lucrative. Starbucks (SBUX) Source: monticello / Shutterstock.com Starbucks (NASDAQ:SBUX), a hidden gem among undervalued stocks, offers valuable investing opportunities for those seeking stocks to buy now. With a keen focus on value investing, Chevron consistently identifies stock market opportunities with immense potential.
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While it’s understandable why powerhouses like Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) dominate headlines, investors must realize that hidden gems and undervalued stocks can be just as lucrative. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s disheartening how the spotlight often falls on a handful of well-known names in the stock market. Starbucks (SBUX) Source: monticello / Shutterstock.com Starbucks (NASDAQ:SBUX), a hidden gem among undervalued stocks, offers valuable investing opportunities for those seeking stocks to buy now.
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While it’s understandable why powerhouses like Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) dominate headlines, investors must realize that hidden gems and undervalued stocks can be just as lucrative. Currently, Starbucks pays a quarterly dividend of 53 cents per share, almost twice its dividend in 2017. With a keen focus on value investing, Chevron consistently identifies stock market opportunities with immense potential.
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15096.0
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2023-06-30 00:00:00 UTC
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Technology Sector Update for 06/30/2023: AAPL, SSYS, NNDM, DM, GOOG
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-06-30-2023%3A-aapl-ssys-nndm-dm-goog
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nan
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nan
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Tech stocks were higher on Friday afternoon with the Technology Select Sector SPDR Fund (XLK) adding 1.7% and the Philadelphia Semiconductor index gaining 1.9%.
In company news, Apple's (AAPL) market capitalization surpassed $3 trillion during Friday's trading session. Shares were rising 1.8%.
Stratasys (SSYS) rejected separate takeover offers from 3D Systems (DDD) and Nano Dimension (NNDM) on Friday while reaffirming its commitment to a $1.8 billion merger agreement with Desktop Metal (DM). Stratasys shares fell 1.3%.
Alphabet's (GOOG) YouTube is urging users to disable ad blockers or switch to YouTube Premium for an ad-free experience because ad blockers violate the company's terms of service. Alphabet shares rose 1.1%.
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 company news, Apple's (AAPL) market capitalization surpassed $3 trillion during Friday's trading session. Tech stocks were higher on Friday afternoon with the Technology Select Sector SPDR Fund (XLK) adding 1.7% and the Philadelphia Semiconductor index gaining 1.9%. Stratasys (SSYS) rejected separate takeover offers from 3D Systems (DDD) and Nano Dimension (NNDM) on Friday while reaffirming its commitment to a $1.8 billion merger agreement with Desktop Metal (DM).
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In company news, Apple's (AAPL) market capitalization surpassed $3 trillion during Friday's trading session. Stratasys shares fell 1.3%. Alphabet's (GOOG) YouTube is urging users to disable ad blockers or switch to YouTube Premium for an ad-free experience because ad blockers violate the company's terms of service.
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In company news, Apple's (AAPL) market capitalization surpassed $3 trillion during Friday's trading session. Stratasys (SSYS) rejected separate takeover offers from 3D Systems (DDD) and Nano Dimension (NNDM) on Friday while reaffirming its commitment to a $1.8 billion merger agreement with Desktop Metal (DM). Alphabet's (GOOG) YouTube is urging users to disable ad blockers or switch to YouTube Premium for an ad-free experience because ad blockers violate the company's terms of service.
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In company news, Apple's (AAPL) market capitalization surpassed $3 trillion during Friday's trading session. Tech stocks were higher on Friday afternoon with the Technology Select Sector SPDR Fund (XLK) adding 1.7% and the Philadelphia Semiconductor index gaining 1.9%. Shares were rising 1.8%.
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15097.0
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2023-06-30 00:00:00 UTC
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2 Warren Buffett Stocks to Buy Hand Over Fist Right Now
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AAPL
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-to-buy-hand-over-fist-right-now-0
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nan
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nan
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Warren Buffett, one of the most successful investors in history, earned a remarkable 3,641,613% total return on capital for Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders from 1964 to 2021. By contrast, the benchmark S&P 500 produced total returns on capital of approximately 2,600% over this period.
What is Buffett's secret to beating the broader markets? He mainly invests in companies that have a strong competitive advantage and a high intrinsic value.
Image source: Getty Images.
Here are two top Buffett stocks that look like outstanding buys right now.
Amazon: A dominant force in e-commerce and cloud computing
Berkshire has been a long-term investor in e-commerce and technology giant Amazon (NASDAQ: AMZN). It started buying Amazon stock in the first quarter of 2019, acquiring 483,300 shares worth $860.6 million at the time.
Since then, Berkshire's share count has grown to 10,551,000, valued at roughly $1.34 billion as of today. Amazon has attracted value investors like Berkshire with its multiple revenue streams, innovative growth strategy, massive scale, and strong competitive advantage.
Amazon is more than just an online retailer. It also dominates in cloud computing, artificial intelligence, digital advertising, streaming media, and smart devices. These segments are also integrated within the company, creating synergies and efficiencies.
These diverse businesses provide Amazon with multiple sources of reliable revenue and tremendous earnings potential. And the company's cutting-edge solutions that integrate these businesses create a wide moat that keeps competitors at bay.
Amazon also has millions of loyal Prime members, a vast distribution network, and a culture of innovation. These factors have made the company one of the most profitable in the world. In 2022, revenue increased by 9% to a staggering $514 billion. And its operating cash flow reached $46.8 billion for the year.
Most analysts covering the stock believe that it is undervalued right now. For example, Morningstar's Dan Romanoff estimates that its shares are trading at a 7.1% discount to their fair value.
Romanoff's opinion seems to be well supported. Amazon is projected to grow its top line by at least 20.7% in 2023 and 2024. And its enormous scale, loyal customer base, and first-class innovation engine should sustain its earnings power for the foreseeable future.
Bottom line: Amazon screens as a top Buffett stock to buy and hold for the long term.
Apple: A wide economic moat
Apple (NASDAQ: AAPL) is the largest holding in Berkshire's portfolio, accounting for 46.4% of its stock investments, according to whalewisdom.com. Buffett and his team of stock pickers have put their trust in this tech giant for one clear reason: Apple has a strong competitive advantage in multiple high-growth markets like smartphones, tablets, and PCs due to the immense loyalty among its customers.
That unrivaled brand loyalty allows it to charge premium prices for its devices, resulting in enormous free cash flow, a key indicator of a sound and profitable business. In 2022, for example, Apple generated an impressive $122 billion in net operating cash flow on $394.3 billion in annual revenue.
As a value investor, Buffett appreciates companies with rising free cash flow they can reinvest in their growth or return capital to shareholders. Apple, for its part, returned a whopping $22.8 billion to shareholders in the form of share buybacks and dividends during the first quarter of 2023.
Apple has also diversified its revenue streams by developing software and services that complement its devices. For instance, it recently launched its own buy now, pay later service, which could boost customer retention and spending.
This fundamentally sound business has also allowed the shares to successfully navigate the recent turbulence in the markets. Even though many tech stocks suffered a sharp decline last year, Apple's stock has managed to achieve a decent 8% increase in the last 18 months. In comparison, the Nasdaq Composite has dropped about 12% in the same time frame.
All told, Apple's wide moat, consistent earnings potential, and high margins should result in solid returns for long-term investors.
Find out why Amazon.com is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Amazon.com is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of June 26, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, 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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Apple: A wide economic moat Apple (NASDAQ: AAPL) is the largest holding in Berkshire's portfolio, accounting for 46.4% of its stock investments, according to whalewisdom.com. Amazon has attracted value investors like Berkshire with its multiple revenue streams, innovative growth strategy, massive scale, and strong competitive advantage. Buffett and his team of stock pickers have put their trust in this tech giant for one clear reason: Apple has a strong competitive advantage in multiple high-growth markets like smartphones, tablets, and PCs due to the immense loyalty among its customers.
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Apple: A wide economic moat Apple (NASDAQ: AAPL) is the largest holding in Berkshire's portfolio, accounting for 46.4% of its stock investments, according to whalewisdom.com. Warren Buffett, one of the most successful investors in history, earned a remarkable 3,641,613% total return on capital for Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders from 1964 to 2021. Amazon: A dominant force in e-commerce and cloud computing Berkshire has been a long-term investor in e-commerce and technology giant Amazon (NASDAQ: AMZN).
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Apple: A wide economic moat Apple (NASDAQ: AAPL) is the largest holding in Berkshire's portfolio, accounting for 46.4% of its stock investments, according to whalewisdom.com. Buffett and his team of stock pickers have put their trust in this tech giant for one clear reason: Apple has a strong competitive advantage in multiple high-growth markets like smartphones, tablets, and PCs due to the immense loyalty among its customers. *Stock Advisor returns as of June 26, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
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Apple: A wide economic moat Apple (NASDAQ: AAPL) is the largest holding in Berkshire's portfolio, accounting for 46.4% of its stock investments, according to whalewisdom.com. Amazon has attracted value investors like Berkshire with its multiple revenue streams, innovative growth strategy, massive scale, and strong competitive advantage. Find out why Amazon.com is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market.
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15098.0
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2023-06-30 00:00:00 UTC
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US STOCKS-Wall St rallies as Apple hits $3 trillion in market cap, inflation cools
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-apple-hits-%243-trillion-in-market-cap-inflation-cools
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nan
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nan
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By Sruthi Shankar and Johann M Cherian
June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its best first-half performance in 40 years as Apple touched $3 trillion in market value and signs of easing inflation comforted investors.
Apple Inc AAPL.Obreached the mark for the first time since January last year, after rising 1.5% to hit an all-time high of $192.40, on optimism about the potential for artificial intelligence and the iPhone maker's ability to grow revenue.
Amazon AMZN.O, Microsoft MSFT.O, Alphabet GOOGL.O and Nvidia NVDA.O rose between 1.2% and 3.3%, extending a blistering rally this year fueled by strong earnings and the AI buzz.
"The biggest companies are thriving right now because all the macro conditions are in favor of them," said David Russell, vice president of market intelligence at TradeStation. "The PCE (Personal Consumption Expenditure) numbers give us a confirmation that the worst of the inflation crisis appears to have passed."
A Commerce Department report showed the PCE index, the Fed's preferred inflation gauge, advanced 3.8%, compared with a 4.3% rise in April. Excluding the volatile food and energy components, the PCE price index gained 0.3%, down from 0.4% in the previous month.
After the data, traders were pricing in an 86.8% chance that the Fed will hike rates by 25 basis points to 5.25%-5.50% range in its July meeting, according to CMEGroup's Fedwatch tool, down slightly from the 89.3% on Thursday.
At 12:14 p.m. ET, the Dow Jones Industrial Average .DJI was up 216.72 points, or 0.64%, at 34,339.14, the S&P 500 .SPX was up 44.28 points, or 1.01%, at 4,440.72, and the Nasdaq Composite .IXIC was up 175.78 points, or 1.29%, at 13,767.12.
Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that Fed will continue to raise rates, but stock markets took comfort in signs of strength in the U.S. economy.
An upbeat first-quarter earnings season and optimism about the economy put the three main U.S. indexes on course for second-quarter gains. The Nasdaq was set for its best first-half performance in 40 years with a 31.5% gain.
The Nasdaq 100 index .NDX of top technology stocks was on track for its best first half on record with a 38.5% rise.
The CBOE Market Volatility Index .VIX, Wall Street's fear gauge, slipped to a one-week low at 12.98 points.
Among other single stocks, Nike Inc NKE.N shed 2.2% after it forecast first-quarter revenue below Wall Street expectations.
Carnival Corp CCL.N jumped 9.3% after Jefferies upgraded the cruise operator's stock to "buy" from "hold".
Advancing issues outnumbered decliners by a 2.95-to-1 ratio on the NYSE and 1.55-to-1 ratio on the Nasdaq.
The S&P index recorded 70 new 52-week highs and no new lows, while the Nasdaq recorded 95 new highs and 57 new lows.
(Reporting by Sruthi Shankar, Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Shinjini Ganguli)
((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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Apple Inc AAPL.Obreached the mark for the first time since January last year, after rising 1.5% to hit an all-time high of $192.40, on optimism about the potential for artificial intelligence and the iPhone maker's ability to grow revenue. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its best first-half performance in 40 years as Apple touched $3 trillion in market value and signs of easing inflation comforted investors. After the data, traders were pricing in an 86.8% chance that the Fed will hike rates by 25 basis points to 5.25%-5.50% range in its July meeting, according to CMEGroup's Fedwatch tool, down slightly from the 89.3% on Thursday.
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Apple Inc AAPL.Obreached the mark for the first time since January last year, after rising 1.5% to hit an all-time high of $192.40, on optimism about the potential for artificial intelligence and the iPhone maker's ability to grow revenue. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its best first-half performance in 40 years as Apple touched $3 trillion in market value and signs of easing inflation comforted investors. A Commerce Department report showed the PCE index, the Fed's preferred inflation gauge, advanced 3.8%, compared with a 4.3% rise in April.
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Apple Inc AAPL.Obreached the mark for the first time since January last year, after rising 1.5% to hit an all-time high of $192.40, on optimism about the potential for artificial intelligence and the iPhone maker's ability to grow revenue. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its best first-half performance in 40 years as Apple touched $3 trillion in market value and signs of easing inflation comforted investors. Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that Fed will continue to raise rates, but stock markets took comfort in signs of strength in the U.S. economy.
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Apple Inc AAPL.Obreached the mark for the first time since January last year, after rising 1.5% to hit an all-time high of $192.40, on optimism about the potential for artificial intelligence and the iPhone maker's ability to grow revenue. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its best first-half performance in 40 years as Apple touched $3 trillion in market value and signs of easing inflation comforted investors. The CBOE Market Volatility Index .VIX, Wall Street's fear gauge, slipped to a one-week low at 12.98 points.
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15099.0
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2023-06-30 00:00:00 UTC
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Apple Stock Has a Shot to Make History Today. Should Investors Be Excited or Worried?
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AAPL
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https://www.nasdaq.com/articles/apple-stock-has-a-shot-to-make-history-today.-should-investors-be-excited-or-worried
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nan
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nan
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Only 10 years ago, Apple's (NASDAQ: AAPL) market cap stood below $400 billion. That was enough to make the technology leader one of the biggest companies on the planet.
Apple now claims the No. 1 spot and has done so without interruption since late 2021. But the company's valuation is no longer measured in billions of dollars. Apple has a shot to make history today if its market cap is over $3 trillion at the market close. Should investors be excited or worried?
An investing milestone
No company in history has ever had a market cap of $3 trillion or higher at the end of a trading day. Apple briefly topped $3 trillion in January 2022 during intraday trading. However, its market cap fell below the level by the market close.
Apple's market cap was knocking at the door of the $3 trillion mark yesterday. Only a small gain was needed to break the barrier. The tech stock opened nearly 1.1% higher this morning, enough to do the trick.
This will without question be an investing milestone if Apple doesn't give up its gains by the end of the day. Only one other publicly traded company is even in the ballpark of reaching a $3 trillion valuation: Microsoft's market cap stands above $2.5 trillion.
Excitement or worry?
Investors certainly have reason to be excited about Apple's achievement. If today's gain holds up, the stock will have skyrocketed more than 48% in the first half of 2023.
However, some could be worried that Apple's market cap is now too high. The stock currently trades at a forward price-to-earnings ratio of nearly 29x.
Apple's recent financial performance doesn't appear to justify such a steep valuation. The company's revenue fell 3% year over year in its latest quarter. Earnings were flat compared to the prior-year period.
The jury is still out on what impact Apple's new Vision Pro mixed-reality headset will make. It's Apple's first new product in years. The reactions to the capabilities of Vision Pro were generally positive. However, the price tag of nearly $3,500 could greatly limit its commercial success.
What really matters
Although a $3 trillion market cap for Apple is a milestone worth celebrating, there's really nothing magical about the threshold. Investors will briefly cheer that the barrier has been broken -- and then they'll look for more.
What really matters for Apple is how much more it can deliver. The stock's valuation is at a historically high level. But there's some reason to believe that Apple's growth could accelerate going forward.
Wedbush Securities analyst Dan Ives wrote to investors on Friday that Apple is "heading into a massive renaissance of growth over the next 12 to 18 months." He stated:
In our opinion the Street has severely underestimated the massive installed base upgrade opportunity around iPhone 14 and now a mini super cycle iPhone 15 ahead with roughly 25% of Apple's golden customer base not upgrading their iPhones in over 4 years.
Ives isn't alone in his positive view of Apple. Of the 38 analysts surveyed by Refinitiv in June, 11 rated the stock as a "strong buy" with another 21 recommending the stock as a "buy."
We'll soon know if Apple makes history today with a closing market cap above $3 trillion. But come Monday, that milestone will be just that -- history. For investors, Apple's future is much more important than its present or its past.
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 June 26, 2023
Keith Speights has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple and Microsoft. 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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Only 10 years ago, Apple's (NASDAQ: AAPL) market cap stood below $400 billion. An investing milestone No company in history has ever had a market cap of $3 trillion or higher at the end of a trading day. What really matters Although a $3 trillion market cap for Apple is a milestone worth celebrating, there's really nothing magical about the threshold.
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Only 10 years ago, Apple's (NASDAQ: AAPL) market cap stood below $400 billion. Apple has a shot to make history today if its market cap is over $3 trillion at the market close. Only one other publicly traded company is even in the ballpark of reaching a $3 trillion valuation: Microsoft's market cap stands above $2.5 trillion.
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Only 10 years ago, Apple's (NASDAQ: AAPL) market cap stood below $400 billion. Apple has a shot to make history today if its market cap is over $3 trillion at the market close. We'll soon know if Apple makes history today with a closing market cap above $3 trillion.
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Only 10 years ago, Apple's (NASDAQ: AAPL) market cap stood below $400 billion. Apple has a shot to make history today if its market cap is over $3 trillion at the market close. An investing milestone No company in history has ever had a market cap of $3 trillion or higher at the end of a trading day.
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