What Moved Apple’s Stock On This Action-Packed Tuesday
Tuesday, October 6, was an action-packed day for Apple. The stock bounced up and down, dipping as low as 2.5% late in the afternoon, for a few different reasons.
Jay Powell and Trump in the news
At a macro level, Apple followed the moods of the market after Federal Reserve Chairman Jerome Powell reinforced his message that further fiscal stimulus is necessary for smoother economic recovery. President Trump chimed in later in the day and ordered a halt in the stimulus negotiations until after the election, which sent Apple and virtually all other stocks sharply lower just ahead of the closing bell.
iPhone 12 on the way, and more
When it comes to company-specific news, Apple's day was marked by the announcement of its October product refresh event to be held on Tuesday, the 13th. Expect plenty of media coverage about product features in the next few days. However, I think investors should focus more on how soon the new iPhone 12 would be available for purchase and delivery, especially in the US.
Finally, news broke that Apple will be removing third-party devices made by suppliers like Sonos and Bose from the company's physical retail locations. On the surface, the piece of news seems more relevant to these device makers than it might be to Apple. But in my view, the move underscores Apple's strategy to expand its home and wearables segment by likely introducing new headphones and speakers in the somewhat near future. Expect Apple to do more of it, as the iPhone and iPad continue to mature as a product category.
Read more from the Apple Maven:
(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)