Q1 2023 Qtrly Earnings Rule US Market. What To Invest?
I have come to the conclusions that US market performances for the next few weeks will largely be “influenced” by Corporate America first quarterly earnings report for 2023.
How So ?
For one, there seems to be hardly any reaction to the news on the possibility of the US government breaching the national debt limit.
I guessed no one believes; not even for a second that it will come to fruition. At least not now yet because there is still ample time for both parties to “hammer out a deal” with or without attached conditions.
Just imagine the effects of the fallout on the country, its currency and international political clout that US currently wields.
Neither political party (Democrat or Republic) will wanna be the party responsible for this impasse.
Therefore, traders are “dead focused on quarterly earnings” rather than the systemic issues following the banking turmoil or the impending national debt limit breach.
Without any corporate earnings reporting out on Mon, 17 Apr - the market still managed to register a decent gain when market closed at 4pm last evening.
DJIA : +0.30% (+100.71 to 33,987.18). 2nd best showing.
S&P 500 : +0.33% (+13.68 to 4,151.32). Best showing of the 3 composite index.
Nasdaq : +0.28% (+34.26 to 12,157.72). Decent showing.
Different perspective of the same thing.
Taking a step back to see how well the US market has fared since 01 Jan 2023 and then wonder what will be in stored in Q2 2023 (now) and also possibly H2 2023.
Composite index YTD performances
Looks like the 3 composite indexes have fared well since the beginning of 2023.
How much “further” upside will there be; given that recent official data / report is pointing to a weakening US economy that might just slipped into recession ?
Need to look for an “omni-resilient” stock that would be able to stand the “test” regardless what state the US economy and US market is.
After searching high & low, I think this might just be the stock that could weather through any difficult conditions - $Apple(AAPL)$. How so ?
Apple Inc - past one year stk price movement
As of ytd, its stock price closed at $165.23.
Apple’s 2022 “peak” price was $174.15, set on 18 Aug 2022.
Implying there is still a +5.12% room for growth.
It may not have beaten inflation that came in at 5% in Mar Consumer Price Index (CPI).
It is also not underperforming inflation either.
Apple's sound technical fundamentals
Its “technical” fundamentals are sound eg. (1) Current price is above its 200-day ma, 50-day ma and 20-day ma respectively.
Apple’s Relative Strength Index (RSI) stands at “62”; neither oversold (< 30) or overbought (>70). There is room for more upside if you asked me.
The “timely” official opening of the first brick & mortar Apple Lifestyle store in Mumbia, India (world most populous country) could not have been a coincidence !
Will know the outcome when Apple reports its Q3 2023 quarterly earnings in Jul 2023. LOL !
If not mistaken, I think Apple stock price would continue to gather strength and trend upwards until Jun 2023. Why June 2023 ?
Catalyst #1
Catalyst #2
I like the tie-up between Apple and $Goldman Sachs(GS)$ . Its a “timely” disruption and “innovation” that will cause fans and non-fans alike to sit up and take notice.
Secondly, the range of “new” and “improved” products to be announced during Apple’s annual event - Worldwide Developers’ Conference (WWDC) on 05 - 09 Jun 2023 will bring focus (once again) to this $2.614 Trillion market cap company.
If the much anticipated “AR/VR” headset makes it debut on WWDC - it is quite likely to result in a run (upwards of course!) on Apple’s stock price.
Reasons being :
Fans have been waiting for the longest time for this “it” product to be released
Rumours had it that the “AR/VR” headset product launch have been postponed several times
Most importantly, if Apple gets the headset right (design, use & price), it might become the new money-spinner that will propel Apple into a different echelon in the IT world (something that $Meta Platforms, Inc.(META)$ has failed to crack so far).
Are you excited with the latest development / news coming out from Apple ?
Do you think there will be more upside than downside to this IT giant ?
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