Growth stocks are back on track! Jump in to get the fresh stock market outlook!
Covid-19 is jeopardizing Apple’s plans
There are some doubts about Apple sustainability amid coronavirus. Who will buy and who will produce new IPhones?
Coronavirus impact on Apple
At first, problems started in Asia. Chinese factories couldn’t supply iPhones because of the lockdown with strict quarantine measures for thousands of laborers. However, the steps taken by the Chinese authorities helped to stop the spread of the disease. Now China is resuming production.
Then, the virus hit the USA and Europe causing shops to close and people to stay at home. That, in turn, hugely reduced incomes. Obviously, that would diminish demand for new Apple products. This is a crucial factor for the future financial health of the corporation. We can see now how Apple’s plans are getting ruined. The unveiling the iPhone 9/SE2 has already been delayed. Even the much-anticipated iPhone 12 seems to be released far later than planned. There are all reasons to expect that these problems will affect Apple stock price preventing it from the upside.
Apple stock had been declining since February 19, then it reversed on March 23 and reached the 271.5 mark breaking through 23.6% and 50% Fibonacci retracement levels. Yesterday it went down and now it’s on 262.51. The nearest support levels are at 255.3 or 38.2% Fibonacci level and at 248.00 where the 50-day Moving Average almost crosses the upward trendline.
The quarterly revenue, January to March, combined to a 12% fall from the previous year. Wall street analysts continue to make their financial forecasts worse and target prices lower for Apple.
The manufacturing problems are over now, so the success of the company depends on the purchasing power of global comsumers. The latter will likely take a serious blow in the upcoming months. In the long-term Apple may recover its prior revenue. We should learn more from Apple’s earnings release and during the call with analysts and investors on April 30.
Remember that by trading stock CDF traders are able to open sell trades on Apple stock!
AMC spiked more than 100% on Wednesday, the struggling brick-and-mortar retailer Bed Bath & Beyond jumped by about 51%.
The biggest newsmaker of the stock market in the past few days has been Virgin Galactic. The stock jumped by more than 20% in premarket trading on Monday.
The United States will release retail sales and producer inflation (PPI index) numbers at 15:30 MT time on June 15.
Gold has plunged amid the stronger US dollar as investors await the Fed’s meeting this week.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?