Every year in early autumn Apple holds its event where it presents new iPhones, Apple Watches, and iPads. This year wasn’t an exclusion. But yesterday’s presentation didn’t result in Apple stock growth, and here’s why.
Nasdaq inches down 2%
On Monday, the Nasdaq Composite index headed south by nearly 2.5%, affected by a dive in Apple Inc equities after two suppliers downgraded their estimates, generating a selloff in other iPhone component makers and putting pressure on technology equities.
Apple equities sank by 4.7% showing $209.67, which is their lowest value since July 27. It became possible because Lumentum Holdings Inc, the major supplier for Face ID technology, along with screen maker Japan Display Inc downgraded their estimates.
Besides this, Lumentum dived by 31% and suppressed other Apple suppliers, including chip manufacturers Qorvo Inc, Cirrus Logic Inc as well as Skyworks Solutions Inc.
The technology sector that has powered much of the American stock market's bull run, headed south by 3.3%, while the Philadelphia SE Semiconductor index sank by 4.4%.
A rebound in crude prices had provided some relief to energy shares, although they were broadly suppressed, with the S&P energy index losing 1.3%.
The Dow Jones Industrial Average slumped by 1.76% hitting 25,532.75. As for the S&P 500, it decreased by 1.60% showing 2,736.42. Meanwhile, the Nasdaq Composite slumped by 2.57% showing 7,216.27.
9 of the 11 major S&P sectors slumped, with moderate profits observed in the defensive real estate as well as utilities sectors.
Goldman Sachs Group Inc inched down by 5.8%, which is the most on the Dow. As for the financial sector SPSY, it inched down by 1.6%.
Altria Group Inc went down by 1.8%, while Philip Morris International Inc sank by 1.2% after the Wall Street Journal informed that the American health watchdog is planning to forbid menthol cigarettes.
Athenahealth Inc tacked on by 9.7% after private equity company Veritas Capital along with hedge fund Elliott Management decided to buy the healthcare software maker for up to $5.5 billion in cash.
Richard Branson offloaded nearly 10 million shares, which equals about 4% of the Virgin Galactic stock, leaving him with an 18% stake.
Today at 00:00 GMT+3 SPCE will present the second quarter 2021 financial results. We will get to know everything about the company's financial condition and plans.
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?