AAPL After Hours: Is This The Start Of Apple Stock's Rally?

Apple stock had a strong day of performance on Friday, leaving behind its four-week low in share price. Here is what could be nudging AAPL towards a June rally.
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Apple stock  (AAPL) - Get Report could be waking up from a long nap, and finally gearing up to leave correction territory.

On June 4, AAPL shares ended the trading session up nearly 2%, leaving behind the four-week low reached on Thursday. The S&P 500 did not climb as far, while an outperforming Nasdaq reflected strength in the tech sector.

In today's edition of the Apple Maven's "AAPL After Hours", I discuss what has most likely moved Apple stock's price on Friday.

Also read: 3 Reasons Why Apple Stock May Finally Reach All-Time Highs

Apple news of the day

At least one piece of company-specific news crossed the wire on Friday. It is speculated that Apple will release an iPad mini later this year and an iPad Pro with wireless charging next year. Keeping the product portfolio up-to-date is crucial for the Cupertino company to beat tough comps in the second half of 2020.

Also, investors may be anticipating Apple's WWDC event on Monday, betting that the company could announce a new product, service or chip that might be meaningful for the investment thesis. The Apple Maven covered the subject in detail recently.

Think "macro"

But in the end, what probably helped Apple stock the most on June 4 was the May jobs report. Were the numbers outstanding, suggesting a pick up in economic activity and discretionary spending? Not at all.

With non-farm payrolls rising by 559,000 but missing expectations, fears over the tapering of the Federal Reserve's monetary stimulus have eased. It seems to be a consensus that the economy will recover fairly quickly. It is much more uncertain how the US Central Bank will deal with inflation and the rise in employment.

The economy, for now, seems to be in a goldilocks zone: certainly warming up, but not overheated. This dynamic bodes well for growth stocks, because the pickup in economic activity may not necessarily lead to a sharp increase in yields.

This, in my view, is an ideal scenario for Apple to reach all-time highs once again, more than four months after falling from the peak.

Read from our Amazon Maven partner: When Will Amazon Reach $2 Trillion?

Key metrics on Apple stock

Below is a short list of Apple's key stock-related figures:

  • AAPL is down 5% for the year.
  • AAPL is down 12% from the January peak of $143 per share.
  • Apple stock is still hanging on to the key $2 trillion level.

Also read: Should You Buy Apple Stock Before WWDC?