There were plenty of negative catalysts to point to, including record Covid-19 cases in the U.S. and parts of Europe, less-than-solid earnings reports from firms including
(ticker: SAP) and
(HAS), and the intertwined uncertainties surrounding a long-awaited stimulus package and next week’s presidential and congressional elections.
Apple stock (AAPL) managed a 0.3% rise on Monday morning despite the macro headwinds. Other Dow components were sitting on hefty losses:
(AXP) was down 3.6%,
(BA) lost 3.5%,
(INTC) dropped 3.1%, and
(HON) fell 2.9%. The index overall was 2% lower on Monday.
The iPhone 12 and the rest of Apple’s new 5G-enabled lineup went on sale on Friday, and anecdotal reports suggested strong demand—some models had shipping estimates of a few weeks. Analysts have been raving about an upcoming “supercycle” for the iPhone 12, in which a wave of customers upgrade.
That hype has helped push Apple stock up nearly 60% in 2020, versus a 1% return including dividends for the Dow. The Nasdaq Composite is up 30% and the S&P 500 has returned 9% since the start of the year.
Apple also caught a bullish analyst report on Monday, with Atlantic Equities reinstating coverage at the equivalent of Buy, from the equivalent of sell previously.
Today, that seems to be enough to give it a bid, when other stocks have fallen.
Write to Nicholas Jasinski at email@example.com