How Has Apple Become SPY’s Top Gainer?



Apple closed in the green with the help of green bond

Apple (AAPL) rose 2.8% on February 16, 2016, and emerged as the SPDR S&P 500 ETF’s (SPY) top performer. Apple was confident in selling its green bond on the day. This is the first-ever green bond that the technology (XLK) giant is planning to bring into the market, and it’s dedicated to environmentally friendly projects.

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What the bond is offering

This green bond consists of two choices. One provides fixed rate notes, whereas the other provides floating rates. Both bonds have maturities from two to 30 years. The seven-year green bond will raise $1.5 billion for the tech giant.

This is the first time that a technology company is issuing a high-grade green bond. Over the years, 13 high-grade bonds have been issued by banks such as Morgan Stanley (MS) and Bank of America (BAC). Apple’s brand name and recognition should help to boost the market with its US high-grade green bonds. Now let’s look at the stock’s recent performance.

A look at Apple’s moving averages

On a month-to-date basis, AAPL returned -7.2% as of February 16, 2016. After the announcement of its 4Q15 results on January 27, 2016, the stock fell almost 6.5% on the day as it warned that China, its biggest overseas market, started to exhibit signs of economic softness. To know more, read China and Shrinking Economies Could Hamper Apple’s Performance.

Apple is trading 11.2% below its 100-day moving average and at par with its 20-day moving average as of February 16, 2016. The 100-day moving average is a strong resistance point for the stock. The stock has not been able to cross its 100-day moving average since December 10, 2016.

Wall Street analysts’ consensus estimates suggest a 39.4% upside for Apple over the next 12-months as of February 16, 2016.

SPY’s top performer

On February 16, the stocks at the top of SPY were Apple, Alphabet (GOOGL), Microsoft (MSFT), and ExxonMobil (XOM). These stocks rose 2.8%, 1.5%, 1.8%, and 2.3%, respectively.

Next, we’ll analyze SPY’s bottom performer on February 16, 2016.


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