AAPL Premarket: Apple Stock Lower 2% On Tuesday

Apple stock re-entered bear territory, trading at less than $127. In premarket trading Tuesday, shares are -2% down. Below are some of the key factors that could move shares higher or lower during the May 11 session.
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On Monday, May 10, Apple had its first down day in the past four trading sessions, losing 2.5% of its value. Shares are now worth less than $127, matching late December 2020 levels.

In premarket action, AAPL started to head lower by -2%, at last check. Below, the Apple Maven discusses some of the key factors that could move Apple stock during the May 11 session.

Figure 1: AAPL Premarket movement on May 11.

Figure 1: AAPL Premarket movement on May 11.

Market-wide movers

A few events this Tuesday could move not only Apple shares, but the market more broadly. For instance, ahead of the opening bell, the S&P 500 and Nasdaq have been trading lower by -1% and -2.5%, respectively. Here are some potential movers:

  • TheStreet reported that a surge in crude oil prices reignited inflation concerns, sending yields higher and causing TIPS (inflation-linked treasuries) to outperform nominal bonds. This sort of movement tends to be a bearish cocktail for growth tech names, like Apple.
  • Wall Street did not help much, when Goldman Sachs issued a highly-skeptical report on FAAMG stocks. According to the bank, there are at least a handful of reasons why Big Tech shares could underperform, ranging from (1) antitrust intervention to (2) an increase in corporate and capital gains taxes and (3) rising interest rates.
  • On the calendar of events, there will be reports on federal funds rate and treasuries bills. Also, an estimated 157 companies will report earnings, Including Electronic Arts ($EA) and Palantir ($PLTR).

Apple-specific movers

Beyond broad market movers, Apple stock could also be swayed by company-specific events. For example, The Street has reported the following:

  • Cathie Wood’s ARK Investment Management sold 30.4% of what it held in Apple shares on Monday. It was reported that Wood's sold 87,560 shares of Apple and now holds 200,387 shares. ARK Fintech Innovation is an ETF that holds $4.2 billion in net assets and Apple accounts for less than 2% of the fund’s market value. The ARK ETF declined 5% on Monday. 

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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)