S&P Rides Apple’s Surge to Record High as Tech Melt Up Continues
The S&P closed at a record high on Friday, as an Apple-infused rally in tech and positive economic data prompted investors to raise their bullish bets on stocks. The S&P 500 closed 0.42% higher at a record 3,395, the Dow Jones Industrial Average rose 0.69%, or 190 points. while the Nasdaq Composite gained 0.42% to close at another record.
Apple (NASDAQ:AAPL) surged 5%, leading the charge higher for the tech sector despite losses in other big tech names such as Microsoft (NASDAQ:MSFT), Facebook (NASDAQ:FB), and Amazon.com (NASDAQ:AMZN). The surge in Apple comes just months to go until the release of its new slate of 5G-enabled iPhones, which many expect will be a game-changer for the upgrade cycle.
“Our recent Asia supply chain checks conducted by our TMT team show a discernible uptick in forecasts for iPhone 12, which bodes well for demand trends heading into this highly anticipated October launch,” Wedbush said in a note. Tesla (NASDAQ:TSLA) was also in focus, rising more than 2% to a new high at $2,049 as it prepares for a five-for-one stock split – a move that will make the stock more affordable for retail investors.
Energy, however, proved an exception to the day’s move higher as oil prices slipped on concerns that a slower pace of economic recovery could hurt demand. But not every sector of the economy is flagging a potential slowdown. Housing remains robust, while a survey on business activity also surprised to the upside.
The Commerce Department said existing home sales rose by a record 24.7% in July to a seasonally adjusted annual rate of 5.86 million units., topping forecasts for a 14.7% rise. “Given the continued plunge in mortgage rates, there is probably further upside for demand in August,” Jefferies (NYSE:JEF) said. – By Yasin Ebrahim
WHAT IS THE CHART SAYING ABOUT – BITCOIN, GOLD, SP500 & DOW
- Be cautious as the P/E Ratio for US Market is crazy expensive and is not justified
- Markets are over-valued due to liquidity that’s pumped into the market
- We focus only on Cheap & Good companies and able to sustain this pandemic
- We see some correction for Bitcoin – but new rallies are onsite
WHAT ABOUT THE PSEI?
- Philippines companies are all at cheap valuation
- There are great companies that you can focus on – NIKL, ACEN, FNI, APX, PCOR, ALI, DD and many more
- Stay focus on Cheap and valued companies – stick to future earning capacity of these companies – like ACEN – CHEAP & GOOD
- Stay cautious over Bank counters & Properties as the recovery take a toll on them
- We like Shipping & Logistic for now as the Lockdown relaxes
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