To The Moon

On Wed, 06 Aug 2025, US stocks regained their footing after White House announced $Apple(AAPL)$ commitment to invest more in US manufacturing. (more details later…)

The ‘good’ news help to lift US market out of a doldrum against a backdrop with Trump’s all-out attack on one of its closer allies — India, and then some more…

The madman of America has imposed an additional 25% tariffs (in total 50%) on Indian goods, citing New Delhi's continued imports of Russian oil as justification.

By the time market called it a day:

• DJIA : +0.18% (+81.38 to 44,193.12).

• S&P 500: +0.73% (+45.87 to 6,345.06).

• Nasdaq: +1.21% (+252.87 to 21,169.42). 2,195 stocks rose and 2,377 fell as declining issues outnumbered advancers by a 1.08-to-1 ratio.

Trading volume on US exchanges was 16.85 billion shares vs 18.27-billion average based on last 20 trading days.

Hero of the Day.

On Wed, 06 Aug 2025, shares of AAPL, jumped +5.1%. to $213.28 per share (see below)

It provided the biggest boost to all 3 major indexes, after a White House official said the company would announce a $100-billion domestic manufacturing pledge.

This comes ‘hot’ on the heels of AAPL’s earlier $500 million investment (in $MP Materials Corp.(MP)$) announced on 15 Jul 2025 to secure its supply of made-in-US rare earth magnets. (see above)

$100 Billion Details.

Briefly, below are areas where AAPL will be spending the announced budget over the next 4 years:

• Launched the American Manufacturing Program (AMP) to increase advanced manufacturing and domestic supply-chain capacity.

• AAPL’s suppliers participating in the program include: Corning, Coherent, GlobalWafers America, Applied Materials, $Texas Instruments(TXN)$ , Samsung and $Broadcom(AVGO)$ .

• $2.50 billion has been allocated for $Corning(GLW)$ to expand iPhone and Apple Watch touched screen glass manufacturing in Kentucky, with the aim for all cover glass for these products to be US-sourced.

• Factory and jobs creation. Apple plans to hire 20,000 people in the US, mostly in (a) R&D, (b) silicon engineering, (c) software development, and (d) AI and machine learning.

• Semiconductor and chip production: Plans for an end-to-end domestic chip supply chain, with production of more than 19 billion chips annually across 24 US factories in 12 states.

Elephant In The Room.

The problem in America is “how something feels is more important” than hard facts or details.

Musk knew this flaw and was able to capitalize on it and string his legion of fans along with all his bold but “failed to launch” visions of (a) robotaxi, (b) hyperloop, (c) Mars colonization etc... Click here ! for the full list.

If one goes through where the $100 billion is going to be spent over the next 4 years, the ventures are self-contained and stop short of bringing actual assembly line back to domestic grounds.

Experts have also weigh-in that making iPhone in the US is an unsurmountable hurdle because of :

• Lack of a skilled technical workforce.

• Higher labour costs.

• Geographically, many of Apple’s key suppliers are located in Asia, meaning assembling products in US would require shipping parts across the world, driving up costs in the process.

Domestically, US strong labour unions, with its restrictive policies and iron-clad contracts’ TnC has ensure AAPL will not risk business by bringing manufacturing back to US.

Do you think AAPL can endure a 46-day strike like the one Ford, GM, & Stellantis faced during their contract negotiations with US labour union?

Reactive Investment.

Personally, I think the $100 billion boost is ‘partly’ a strategic move to avoid heavy tariffs threatened by the Trump administration on imports, rather than purely voluntary domestic expansion.

AAPL is responding to political pressure and tariff threats, that represents a reactive rather than proactive manufacturing strategy.

Even as Trump decided on a 50% tariff on India, smartphones are exempted from it — a key win for companies like AAPL, dodging the bullet successfully and keeping costs under control.

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.

• US Market & Economy & The Mid-Week Reports. Thu, 07 August. Pick post.

• Novo Nordisk - Dun buy yet OR Just dun buy ? Wed, 06 August. Pick post.

• $PLTR : A Billion-revenue AI Stock. Buy ? Wed, 06 August. Pick post.

• Do you think Apple Inc was strategic, to leverage on resources to navigate thru a possible treacherous 4 years ?

• Do you think US market will continue to ascend higher despite inflation recurrence is quite likely ?

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