Apple stock continues its slow climb, following the September-to-October share price unwind – the stock entered bear territory, briefly, in mid-September.
The problem, as I mentioned in a previous post, is that Apple has largely run out of catalysts in 2020. The iPhone 12 and Mac announcements and the last earnings report of the year have now been left behind.
Does this mean that Apple shares will stay quiet for a while? Not necessarily.
Yes, the US Presidential election is pretty much old news – despite unsuccessful attempts by the current White House occupant to dispute the results. But this is not to say that the election is no longer an important factor driving the markets.
Let me explain.
The S&P 500 has had a decent year so far, despite the circumstances. However, it seems clear that the market went into defensive mode ahead of the election, as the stock index corrected as much as 9% from the peak.
Sure, stocks have already rallied quite a bit since early November. But a return to “risk-on” mode could continue to lift equities in the foreseeable future. If this happens, might Apple be a beneficiary of the market-wide tailwinds?
Stay tuned to find out.
Holiday season ahead
The other important item to keep an eye on is the holiday season. Some retailers have already announced promotions like “10 Days of Black Friday”, suggesting that holiday sales should start to pick up earlier this year.
I would not be surprised to see third-party researchers start reporting on holiday shopping activity very soon. Apple has quite a bit of new devices out in the market, from the iPhone 12 to the Mac to the iPad and Watch Series 6.
News on this front could move Apple shares in the coming week.
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(Disclaimers: 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)