AAPL Premarket: The Rally Is Taking Shape

Apple stock climbed relentlessly through a volatile week in the equities market. Could shares of the Cupertino company finally be heading towards all-time highs?
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Could Apple stock  (AAPL) - Get Report be finally heading towards the peak? On June 17, shares clinched another gain, despite the turbulent couple of days in the market. The stock has easily outperformed the S&P 500 since the Federal Reserve’s most recent meeting sent shockwaves through the financial system.

In today's edition of the Apple Maven's "AAPL Premarket", I discuss what has moved Apple stock price on Thursday, and what to expect of shares on Friday.

Read more from the Apple Maven: Buy Apple Stock After The Fed’s Meeting

Apple’s resilience

Heads I win, tails I win as well. This is how the sharp movements in treasury yields impacted Apple stock on Wednesday and Thursday.

Jerome Powell’s address after the FOMC meeting sent rates soaring and many stocks tumbling. But AAPL still managed to end the session up +0.4%. When yields pulled back the next day, AAPL produced even more gains: +1.3%.

The reason for Apple’s resilience in the face of such turbulence is unclear. I speculate that (1) the stock has stayed under water too long for bargain hunters to ignore, while earnings estimates continued to climb; and (2) the worst of the fears over rising inflation and yields has probably been already absorbed by the market.

Apple’s price action was a bit easier to explain on Thursday. The 10-year treasury yield reset around 1.5%, a surprise to many after the Fed’s decision to start “talking about talking about” tightening monetary policy in 2023. Also, a combination of rising cases of COVID’s delta variant in the UK and unexpected increase in US unemployment claims sent investors flocking to the safety of FAAMG.

Aside from macroeconomic news, not much more seems to have impacted Apple shares in the past day or two. If anything, cries over government regulation of Big Tech have grown louder, which could have been a bearish development for Apple stock – but it was not.

Read more from the Apple Maven: What Jim Cramer Says About Apple Stock After WWDC

What to expect of Friday

There is not much happening on Friday that could nudge Apple stock price higher or lower, after a week that was packed with releases on macroeconomic data that dictated market action. The day should be quiet for Apple and equities in general.

Key metrics on Apple stock

Below is a quick summary of Apple's key stock-related metrics:

  • AAPL is flat for the year, after being down as much as 12% in March.
  • Despite the recent climb, AAPL is still down 8% from the January peak of $143.
  • Apple is the most valuable stock in the world: $2.2 trillion.

Twitter speaks

Time to play fortune teller. By the end of 2021 (i.e. in six months), where will Apple stock be trading? Leave your vote below and follow @AppleMaven on Twitter!

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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)