The ripples from China’s stock market crash are finally hitting American shores, causing significant damage to Apple Inc. (NASDAQ:AAPL) in particular. Declining equity prices and falling exports forced a devaluation of the yuan, causing the currency to weaken against the dollar.
At first glance, a depreciating yuan seems like a good thing for Apple. The smartphone giant sources parts and production from suppliers in China, most notably the electronics manufacturer .
With the recent tumble in the U.S. stock market, Apple Inc.’s (NASDAQ:AAPL) stock price plunged, before bouncing back quickly afterwards. Sure, the stock market is in a correction phase, but remember what Warren Buffett told us; “be greedy when others are fearful.” Right now, Apple is in great shape with strong financials and is taking advantage of an “unprecedented opportunity.”
Apple Stock’s Lucrative Dividends
Instead of talking about how great .
On Wednesday morning, the NASDAQ Composite Index climbed higher under weak ADP employment data and disappointing trade balance.
ADP reported this morning that the U.S. private sector added 185,000 jobs in July—a significant drop from last month’s 229,000 addition, also missing the 216,000 expected.
Trade balance worsened in June, with the total goods and services deficit at $43.8 billion. June’s trade balance was $2.9 billion larger than the $40.9 billion .
The U.S. stock market indices remain largely unchanged despite a number of corporations updating their earnings. The Dow, NASDAQ, and S&P 500 all gained around a tenth of a percentage point.
A number of corporations, including Aetna, Coach, and CVS Health, reported their earnings. Economy-wise, the market awaits trade balance and ADP employment data scheduled to be released this Wednesday.
Greece expects its bailout deal to be .
The NASDAQ Composite Index opened the trading session lower on Friday, July 24th, down 6.5 points or 0.31%. Lagging pessimism from Greece’s debt crisis hung over the market, as did an underwhelming earnings report from Apple Inc. (NASDAQ/AAPL). America’s technology exchange fell by 1.39% during the week, including a 0.49% fall on Thursday.
Despite an attempted pivot away from economic headwinds last week, investors will have to pay attention to .
Apple Inc.’s (NASDAQ/AAPL) share price tumbled as much as seven percent in early trading on Wednesday July 22nd. Why? The company just came out with its earnings.
The headline numbers look great. Revenue came in at $49.6 billion, a 33% increase year-over-year. Net profit was $10.7 billion, translating to earnings of $1.85 per share. That was a 44.5% increase in earnings per share (EPS)! (Source: Apple, July .
Apple Inc. (NASDAQ/AAPL) is due to release its quarterly earnings report on July 21st after market close. Here are a few things that investors should watch for in the report.
Strong Growth Expected
Analysts are expecting strong growth for Apple in the reporting quarter. Revenue is expected to be $49.26 billion, a 31.6% increase year-over-year. Adjusted earnings-per-share are expected to be $1.80, up from $1.40 in the same quarter last .
The NASDAQ opened higher on Friday July 17th after strong earnings results from Google Inc. (NASDAQ/GOOG, GOOGL) and positive economic data. This could eventually give clues on the timing of an interest rate increase.
The U.S. dollar is heading for its biggest gain since May after economic data increased the possibility of an interest rate hike. In China, the Shanghai Composite Index rose more than three percent as the government .
Wall Street rose on Monday, July 13th, as Greece and its creditors strike a deal to move forward with a third bailout loan to avert their financial crisis.
European stocks climbed on Monday after eurozone leaders announced a deal to provide a loan to keep Greece solvent. While the Athens stock market has been closed since June 26th, U.S.-listed Greek equity assets surged by over 10% in pre-market trade.
Wall Street opened sharply lower on Monday July 6, 2015, as Greek people rejected the bailout package by creditors on Sunday, putting the euro on edge. European stock markets plunged as Greece’s exit from the eurozone seems to be likely.
After Greece overwhelmingly voted against conditions for a rescue package on Sunday’s referendum, many analysts and experts expected a closer result, or a “Yes.” It remains uncertain whether Greece will .
Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.
Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.
Estimates Aug. 29, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter)