Apple (AAPL) is scheduled to release its second quarter of fiscal 2019 results on April 30 after markets close. 2019 began on a terrible note for the company, as its stock fell 10.0% on the second trading day of 2019 (January 3) after it revised its first-quarter guidance downward. Before we begin to look at Wall Street analysts’ consensus estimates for Apple’s second-quarter earnings, let’s take a quick look at how its stock has been trading in 2019 so far.
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Outperforming the broader market
Despite a terrible start, Apple stock managed to recover sharply after a 10% drop on January 3. In January, February, and March 2019, the stock rose by 5.5%, 4.0%, and 9.7%, respectively. With the help of these gains, AAPL ended the first quarter with 20.4% gains as compared to 13.1% and 16.5% rises in the S&P 500 Index (SPY) and the NASDAQ Composite Index. Apple’s improved services segment revenues and profitability in the first quarter helped it regain investors’ confidence.
As of April 23, Apple stock has gone up by 9.2% on a month-to-date basis as compared to 3.5% and 5.1% gains in the S&P 500 Index and the NASDAQ Composite Index.
On March 25, the company unveiled its news subscription and video streaming services, as expected, called Apple News+ and Apple TV+, respectively. Since then its stock has been trading on a strong bullish note due to investors’ high hopes from these new services. Also, an end to Apple’s years-long legal battle with chipmaker Qualcomm (QCOM) with a settlement earlier this month added optimism.
According to the latest data compiled by Reuters, 52% of analysts covering Apple (AAPL) gave it a “buy” recommendation.
In the last month the CSI 300 is down 11.5%, much more than US indices.
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.