Apple Gains on Wall Street Backing Despite Gloomy iPhone Sales Outlook By Investing.com


© Reuters.

By Yasin Ebrahim

Investing.com – The ongoing measures from government worldwide to contain the Covid-19 pandemic has led Apple to shutter most of its stores, raising fears of a slump in iPhone sales, but the room for growth in its services and wearables continues to fill some on Wall Street with optimism.

Apple (NASDAQ:) rose 2%.

Apple’s services and wearables units have room to grow, UBS said, after its survey of iPhone users across four geographies showed that 31% of iPhone owners are spending less than $1 each month on the App Store, underscoring the potential for spending to rise in the years ahead.

The number of respondents interested in Apple Arcade, Apple’s monthly gaming subscription offering, jumped to 39% from 31%. While the percentage of iPhone owners who own Airpods or an Apple Watch remained low at 12% and 17%, respectively, UBS said.

With coronavirus disruptions to the global economy likely to continue to hurt demand and prompt Apple to delay its 5G iPhone launch, set for the Fall this year, UBS cut its expectations for iPhone sales by 16% to 162 million units.

But iPhone demand will return strongly in 2021, with UBS estimating a 30% increase in unit sales to about 210M million units.

Others on Wall Street are also betting on Apple delaying its 5G phone rollout until the holiday season.

“The Key 5G iPhone product launches set for the Fall delays into the holiday season and normalizing US and Europe consumer demand trajectory into Fall timeframe, while demand across China rebounds modestly into the June and September quarters, however with some clear demand destruction,”  Wedbush said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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End-of-week Gains for Asian Stocks By Investing.com


© Reuters.

By Gina Lee

Investing.com – Asian stock markets were up on the last trading day of the week despite drops in Chinese industrial profits and a huge rise in U.S. jobless claims.

China’s National Bureau of Statistics reported that industrial profits for January and February dropped 38.3% year on year, compared a 6.3% drop in December 2019. The steepest drop in a decade was due to lockdowns to curb the spread of COVID-19.

Despite the news, China’s was up 0.8% by 10:24 PM ET (2:24 AM GMT) while the was up 0.97%.

Hong Kong’s was up by 1.07%.

Japan’s led the gains as it rose 1.55%, whilst next door South Korea’s gained 1.75%.

The gave up earlier gains, losing 1.95%.

The United States announced an unprecedented 3.28 million jobless claims last week, triple the one million in forecasts compiled by investing.com.

Expectations that the House of Representatives will pass a $2.2 trillion stimulus package buoyed investor hopes and equities. United States Federal Reserve Chairman Jerome Powell told NBC’s Today program on Thursday that: “When it comes to this lending, we’re not going to run out of ammunition, that doesn’t happen.”

“We still have policy room in other dimensions to support the economy.”

But Joseph Capurso, senior currency strategist at Commonwealth Bank of Australia, warned in a note: “We judge markets are pricing‑in a short sharp US recession. Our fear is the surge in jobless claims – even if the benefits paid will soon be increased – will draw-out the recession longer than markets expect.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Dow Enters Bull Market as Swashbuckling Gains on Wall Street Continue By Investing.com


© Reuters.

By Yasin Ebrahim 

Investing.com – The swashbuckling gains on Wall Street saw the Dow enter bull-market territory again as investors cast aside a record jump in jobless claims on growing hopes that stimulus will ensure that a widely-expected U.S. recession is short-lived.

The jumped 6.38%, or 1,351 points. The Dow is up about 21% since its most recent low. The surged 6.24% and the rose 5.60%.

In an interview with NBC, Federal Reserve Jerome Powell conceded the U.S. “may well already in a recession,” but boosted investor expectations for more stimulus by insisting the central bank had plenty of ammo after it pledged earlier this week to ramp-up its bond-buying program.

“When it comes to lending, we are not going to run out of ammunition,” Powell said. “That just doesn’t happen.”

With the well of monetary policy seemingly at little risk of running dry, and a fiscal boost expected imminently as Congress readies the launch of its $2 trillion stimulus package, investors raised their bullish bets on stock, with the more defensive names like utilities and real estate among the biggest gainers.

Industrials, meanwhile, continued to get a lift from Boeing (NYSE:), up 13.5%, as the stimulus bill — expected to be approved by the House — will provide the aviation sector with a much-needed fiscal boost.

The rally on Wall Street comes even as Covid-19 infections continued to mount worldwide, with cases in the U.S. surging to nearly 76,000 and deaths topping 1,000. In Italy, the epicenter of the outbreak in Europe, infections surged by 6,153, the most in five days, taking the global tally to above 500,000.

Financials also supported the broad-based rally, led by banking, even as Treasury yields dropped.

JPMorgan (NYSE:) rose 6.7%, Goldman Sachs (NYSE:) gained 6.8% and Bank of America (NYSE:) rallied 7.6%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Stocks run out of steam on U.S. job jitters, yen gains By Reuters


© Reuters. A currency dealer works in front of electronic boards showing the Korea Composite Stock Price Index (KOSPI) and the exchange rate between the U.S. dollar and South Korean won, in Seoul

By Tom Westbrook

SINGAPORE (Reuters) – A two-day equities rally lost momentum on Thursday, and investors sold riskier currencies, as stimulus negotiations dragged on in Washington and investors fretted over a likely spike in U.S. jobless claims.

MSCI’s broadest index of Asia-Pacific shares outside Japan wobbled either side of flat. slumped 4% and U.S. stock futures fell 1%.

The dollar climbed around 1% against the Australian and New Zealand dollars and the yen rose 0.4% against the dollar as investors sought shelter.

“We are not out of the woods just yet,” said Stephen Daghlian, at brokerage CommSec in Sydney. “There are plenty of risks in the next couple of weeks.”

First among them are initial jobless claims in the United States due at 1230 GMT, with forecasts in a Reuters poll ranging from 250,000 claims all the way up to 4 million.

U.S. Federal Reserve Chairman Jerome Powell is also due to appear on NBC television around 1100 GMT.

The Fed’s promise of unlimited bond buying has eased some of the virus-driven financial stress this week. But Powell is also likely to be asked about the real economy, and the apparent divide between health officials and President Donald Trump as to how quickly the country can return to work.

Meanwhile, as Senate leaders in United States hoped to vote on the stimulus package late in the Washington night, markets’ patience and optimism are beginning to waver.

“There has been so much stimulus thrown at this,” said Jun Bei Liu, portfolio manager at Tribeca Investment Partners in Sydney.

“But the positivity related to it is really just sentiment,” she said. “A lot of companies have withdrawn earnings guidance…these are still ahead of us. We don’t know how bad it could be.”

Hong Kong’s was down 0.5% by mid-morning while regional trade was mixed. Indexes in China posted meager gains and Australia, Indonesia and Thailand advanced.

JOBLESS CLAIMS TO TEST BOUNCE

The money at stake in the stimulus bill amounts to nearly half of the $4.7 trillion the U.S. government spends annually.

But it also comes against a backdrop of bad news as the coronavirus spreads and more signs of economic damage.

Singapore’s economy suffered its biggest contraction in a decade in the first quarter, data showed on Thursday, as the coronavirus pandemic prompted the city-state to cut its full-year GDP forecast and plan for a deep recession.

Spain’s coronavirus death toll has overtaken China’s and a total of 21,221 people have died globally.

California Governor Gavin Newsom told reporters on Wednesday that a million Californians had already applied for jobless benefits this month – a number that knocked stocks from session highs and has analysts bracing for even worse to come.

RBC Capital Markets economists had expected a national figure over 1 million in Thursday’s data, but say “it is now poised to be many multiples of that,” as reduced hours across the country drive deep layoffs.

“Something in the 5-10 million range for initial jobless claims is quite likely,” they wrote in a note. That compares to a 695,000 peak in 1982.

Citi Private Bank said the peak could reach 15-18% of the total U.S. workforce, some 25 million people.

In currencies, the mood was to duck and cover. The Australian dollar fell 1.3% to $0.5879 and the pound fell half a percent to $1.1833.

The safe haven yen rose to 110.70 per dollar.

Oil steadied with stimulus hopes offsetting fears of plunging demand. futures slipped 35 cents to$24.14 per barrel and futures fell 0.9% to $27.15.

Gold fell 1% to $1,597.91 per ounce.





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As Dow wipes out over 3 years of stock-market gains, here’s a warning about calling the bottom


How much worse can it get?

That’s a question many investors are undoubtedly asking themselves after a week of historic volatility that saw stocks suffer another pummeling and drove the Dow Jones Industrial Average to its lowest close since December 2016 as the global COVID-19 pandemic promises to push the world into recession.

After all that, some investors might feel a strong temptation once the market finally shows some stability to declare that the lows are in. But some Wall Street veterans have a word of advice: Don’t!

“First, let’s acknowledge that none of us can predict when the market will bottom,” said Brian Levitt, global market strategist at Invesco, in a Friday note.

“The number of new COVID-19 cases will likely need to peak before we get there. That’s a question for the epidemiologists to answer and a challenge for Americans and global citizens to take social distancing and/or isolation seriously,” he wrote.

Counterpoint: The stock market may bottom long before the coronavirus epidemic peaks, analysts say

In fact, for Wall Street professionals, warned Nicholas Colas, co-founder of DataTrek Research, the temptation to make a bold market-bottom call carries serious career risk.

“Over my plus-30-year Wall Street career I have seen more friends fired or lose clients because they tried to pick a bottom than any other single cause,” he said, in a Friday note.

Of course, stocks will stop falling at some point. Even if the bear market is still far from over, history offers some reassurance for long-term investors, Levitt said.

“In fact, over the six major bear markets we observed, investors would have lost, on average, 38% between the midpoint and the bottom. Ten years later, an investor would have returned, on average 110% cumulatively from the midpoint of the drawdown,” he said.

But the carnage accompanying in this bear market is understandably unnerving. The Dow Jones Industrial Average

DJIA, -4.55%

 dropped more than 17% in the past week for its worst weekly performance since the 2008 financial crisis, while the S&P 500

SPX, -4.34%

 marked the same milestone with a 15% drop.

See: The Dow is on pace for its worst month since the Great Depression, but here’s why all hope isn’t lost

The Dow and S&P 500, which both traded at all-time highs in February, dropped from records to a bear market — a pullback of 20% from a recent peak — at the fastest pace on record, and have kept falling. With Friday’s close, the Dow is down 35.1% from its Feb. 12 record finish, while the S&P 500 is off 31.9% from its Feb. 19 record.

°And the drop has come alongside unprecedented volatility. The S&P 500 saw a stretch of seven consecutive trading days in which the index moved up or down 4%, the longest on record. The Cboe Volatility Index

VIX, -8.28%,

a measure of expected volatility for the S&P 500 over the next 30 days, closed earlier in the week at an all-time high.

The stock-market volatility is part of a broader market breakdown that saw investors world-wide liquidating assets across the board in a dash for cash that saw even traditional haven assets fall and sent the dollar soaring, creating a feedback loop.

The Federal Reserve and other major central banks responded with a range of stimulus measures and other efforts aimed at shoring up liquidity and ensuring markets could function. Governments weighed a range of fiscal stimulus measures on previously unthinkable scales.

Check out: Here’s a breakdown of the Fed’s rescue programs to keep credit flowing during the pandemic

As a result, investors are witnessing historical market events for the first time together, noted Brian Belski, chief investment strategist at BMO Capital Markets.

“For an investment and strategy culture and community that routinely relies on history for precedence and perspective, we believe it is safe to state that what has transpired the past several days does not have a perfect parallel to previous stock market corrections and ‘shocks,’ he said, in a note.

That means there “unfortunately does not exist a magic chart, table or bullet point that will answer all questions, let alone illustrate the bottom or foretell the recovery in stocks that WILL follow this,” Belski said. “Regrettably, a less negative and hopefully POSITIVE stream of headlines on coronavirus (COVID19 virus) is most likely the only acceptable antidote the stock market is yearning for right now.”

In the week ahead, investors will get a look at a range of economic data, including February durable-goods orders on Wednesday, while February consumer spending and income data is due on Friday. But the main event may be weekly jobless claims data on Thursday, which is expected to show a monumental jump as employers prepared for shutdowns.



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