Apple stock was 1% lower on Thursday as stock markets retreat on fading stimulus hopes. A recent failure to hold the $123.00 level could see further losses ahead despite the launch of four new 5G iPhones this week.
Treasury Secretary Steven Mnuchin said yesterday that it would be hard to get something done before the election. Dow futures were 300 points lower on the comments and he has tried to cool investor fears today by saying that a deal would be passed “quickly” if President Trump holds onto the White House. Trump himself has tried to appeal to markets by hinting that he will approve a higher stimulus package despite GOP concerns.
Apple just launched four new version of the iPhone this week with the 5G-ready iPhone 12, iPhone 12 Mini, iPhone 12 Pro, and iPhone 12 Pro Max. The company will pinning their hopes on big demand for these phones, yet there is maybe a lack of infrastructure available for them just yet, so any fedd through into earnings will be later down the line.
The fundamentals haven’t really changed for Apple and the stock currently trades at a P/E ratio of 36.8x earnings. The stock may swing with the indices over the near-term and we have catalysts in the form of a stimulus deal and a U.S. election up ahead to provide the volatility.
Apple Technical Outlook
Apple was rejected at the $123.00 level but this was previous support for the push to the record high. The stock will have to get back above that level to see further gains but today’s gap down favors the downside. If you require assistance with technical analysis and trade entry, then please consider the Investing Cube Forex Trading Course or one-to-one coaching.
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Apple Daily Chart
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