This Week's Focus Still Is - Inflation and Apple.
For the week, which was shortened by Monday's Labor Day holiday, Nasdaq and S&P 500 closed slightly higher on Friday 08 Sep 2023, narrowly avoiding a full week of losing sessions.
Still, all three major indexes ended the week lower as (a) oil prices rose, (b) labor market data came in stronger than expected, and (c) China shocked markets with its iPhone ban; managed to spook the market.
When market closed on Friday:
(1) $DJIA(.DJI)$: (see above)
For Friday, Dow ended up +0.22% (+75.86 to 34,576.59).
For the week, Dow was down -0.86%.
(2) $S&P 500(.SPX)$: (see above)
For Friday, S&P ended up +0.14% (+6.35 to 4,457.49).
For the week, S&P was down -1.61%
Index posted 13 new 52-week highs and 17 new lows
(3) $NASDAQ(.IXIC)$: (see above)
For Friday, Nasdaq ended up +0.09% (+12.69 to 13,761.53).
For the week, Nasdaq was down -2.61%
Nasdaq recorded 36 new highs and 229 new lows. “Tech” stocks are extremely volatile.
(4) Trading volume on the US exchanges:
For week ending Fri, 08 Sep 2023, 8.89 Billion shares changed.
Compared to the 9.96 Billion moving average for the last 20 sessions
S&P 500 Sector Indexes Performances
Despite a short trading week, S&P 500 Energy index gain +3.47% (see above)
It boasted the biggest percentage gains among the eleven S&P 500's industry sectors as oil prices rose.
While this is good news for investors of energy stocks, will the gains come back to haunt the market when August 2023 Consumer Price Index (CPI) report is published this Wed, 13 Sep 2023?
US Services - Purchasing Manager Index for Aug 2023
The US Services Purchasing Manager Index (PMI) August report has caught the market by surprised (see above).
For August 2023, US Services PMI registered 54.5%
versus market expectation of 52.5%.
August reading is also +1.8% points higher than July's reading of 52.7 percent.
Latest report also indicates growth for the 8th consecutive month after December’s reading of 49.2 percent, that was the first contraction since June 2020 (45.4 percent).
In summary, August data:
Signals economic expansion in US
Sticky price inflation that does not seemed to be trending down anytime soon.
US July 2023 - Core CPI
US’s July Core consumer price index (CPI) came in at 4.7%.
US’s June Core CPI was 4.8%.
With energy stocks picking up momentum since August, would that result in August CPI report higher inflation rate?
$Apple(AAPL)$ lost around $200 Billion in market capitalization Wed & Thursday after reports China has banned government officials from using iPhones at work.
China's ban could hasten Apple's ongoing efforts to diversify its supply chain.
The company's closest partner, Foxconn, moved iPhone 14 production to a factory in India last year.
While Foxconn still has a large presence in China, it has since shifted more assembly to neighboring Vietnam.
It is no wonder that President Biden is currently on an official visit to Vietnam, renewing ties with a country that has a “deep & dark” historic past with the US.
Was it a coincidence that the ban came fast & furious after Huawei officially announced its Mate 60 release with 5G capabilities on Fri, 08 Sep 2023?
That is 3 days before Apple’s annual wanderlust event where it would reveal its latest products offerings.
The announcement also have US policy makers sprang into action urging the Biden administration to further tighten its hi-tech export restrictions.
The 2 main events (US inflation & Apple Wanderlust event) taking place this week could not have been a “worse” combination for US market.
There has been alot of reports anticipating that CPI will come in “higher” for August report, compared to July’s.
If this is turns out to be true, US market might just take a dip mid-week.
Similarly for Apple’s Wanderlust event, if the new products’ features and technical “advancements” (especially for iPhone 15 Pro & 15 Pro Max) are not enticing or attractive enough, its stock price might just tumbled.
It has in the past and it may happen again tomorrow - Tue, 12 Sep 2023.
Do you think US market will continue to consolidate this week? It is September afterall.
Do you think Apple stock price will rise or fall after the Wanderlust event reveal of all its latest products?
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Usually the stock price went down after the new iphone came out in the last few years
Qualcomm jumps for making a deal with Apple and Apple takes a dump....ironic don't you think??
Im not bullish or bearish, (Im about making money)but over 902 M calls were just bought @ 185 9/15
Usually the stock price went down after the new iphone came out in the last few years