Commenting on Apple reaching $2 trillion market capitalization and today’s trading Gorilla Trades strategist Ken Berman said:
Q2 2020 hedge fund letters, conferences and more
Apple Hits $2 Trillion
The major indices are virtually unchanged at midday as choppy trading continued this morning ahead of the Fed’s meeting minutes. Apple (AAPL, +1.3%) and Facebook (FB, +1.7%) have been among the best-performing large-cap stocks in early trading, and Apple reached another mind-boggling milestone as its market capitalization topped $2 trillion for the first time. Target (TGT, +12.5%) reported bullish earnings before the bell, but in contrast to Home Depot (HD, -0.6%) and Walmart (WMT, -1.5%) the retailer’s shares reacted well to its earnings, pushing higher by double-digits.
In economic news, the British Consumer Price Index (CPI) and Producer Price Index (PPI) both bear expectations overnight, helping the rally in global risk assets, and even lifting the relatively weak European benchmarks. Crude oil inventories dropped by less-than-expected after plunging lower for several weeks, hinting at a slowdown in consumption, which is in line with the high-frequency economic data of the past few weeks.
Market Wrap
Dow: 27,857, + 79 or 0.3%
S&P 500: 3,397, + 7 or 0.2%
Nasdaq: 11,236, + 25 or 0.2%
Russell 2000: 1,578, + 8 or 0.5%
What's next for Apple and broader market capitalization
Market breadth has been in line with the performance of the major indices this morning, with advancing issues outnumbering decliners by a 5-to-4 ratio on the NYSE at midday. Only 14 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 75 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a mixed and choppy afternoon. The financial and industrial sectors have been the strongest in early trading, but the gains have been limited in the quiet environment, and only real estate stocks are clearly in the red despite the drop in Treasury yields, but trading activity is expected to pick up in the last couple of hours of trading. Stay tuned!
