The United States stocks closed, most of them, lower this Monday, with Apple Inc. (AAPL) at its lowest since June 2014 (almost 2 percent lower). Dow couldn’t almost get return because of the slump in the shares of technology companies, more specifically by the abrupt decrease in value of Apple’s shares. Apple wasn’t the only reason for this decline; it contributed to it and aggravated the situation. Boeing was one of the few companies that had a positive impact in Thursday’s gains.
This decrease led to lowering the S&P 500 and Nasdaq Composite indexes, which swerved all day between profit and loss, ending up practically flat. The only things that helped to make up for Apple’s and health care companies’ impairment were the gains obtained in telecommunications and consumer staples. Microsoft (MSFT) and Amazon.com (AMZN) were the ones who contributed the most to the gains obtained.
The Nasdaq Composite index (COMP) closed 23.35 points below the opening value, at 4,737.33 (a 0.5% decrease) with Apple Inc. (AAPL), its major component, dipping around 2.4%.S&P 500 (SPX) ended Thursday’s session practically flat at 2,064.11 and was trading throughout the day in a 20-point range. Multiple analysts blamed the sales reported by retailers and department stores for the high volatility in the session. Kohl’s company reported an unexpected break in sales, comparing to the same quarter of the past year.
The Nasdaq Advisory Services senior director Myles Clouston said “The market seems to be at an inflection point and investors are trying to get their arms around where the next move is”. He also pointed that “there is a lack of conviction of late. No one’s chasing it much higher”. Also Anthony Valeri, investment strategist at LPL Financial, warned that when you have weakness in a market leader you have to be cautious in the moves you make.
Apple Inc. is one of the giants in technology. They are an American multinational company based in Cupertino, California, that designs, manufactures and sells electronics, computer software and all sorts of electronic gadgets. For a couple of years now Apple has been seeing their shares dropping down value, giving less positive signs to potential buyers and investors.The most recent pessimist around Apple comes after they reported quarterly results last week below what was expected and the first year-over-year decrease in income in 13 years also helped to aggravate it.
The major problem is that the market recognizes this decrease as a long term one after the fantastic run in the last decades and they see that Apple’s latest SE model, with the cheapest entry price in iPhone’s history, will have a negative impact, maybe lowering the average selling prices. Much of the Apple’s growth in a recent past is due to the introduction of iPhones into new markets with huge potential and now those kinds of markets may not exist anymore. If they get to the Indian market and their products sell at a good pace, maybe we’ll assist to an Apple boom once again. If not, like the analysts predict, because of the poverty and bad retail organization there, we’ll possibly assist to the decline of one of the biggest companies in the world.