Apple hits record high before earnings

GURU WISDOM

“To be successful, you have to have your heart in your business, and your business in your heart.” —Thomas Watson Sr., Chairman and CEO of IBM

MARKETS

*Daily closing price
↗ EUR/USD    1.2167        (+0.04%)
↘ GBP/USD    1.3684        (-0.35%)
↗ USD/JPY    103.77        (+0.28%)
↘ S&P 500    3841.47    (-0.30%)
↘ Hang Seng    29,447.85    (-1.60%)
↘ Gold    (spot)    1855.86    (-0.77%)
↘ Oil (Brent)    55.09        (-1.80%)
↗ Bitcoin    32,808        (+3.50%)
 

NEWS

Stimulus questions

The dollar gained on Friday as cyclical stocks fell amid concerns that Joe Biden might find difficulties passing his $1.9 trillion covid relief plan. Oil prices too came off their highs. Several Republican Senators and even a Democratic Congressman have called into question the size of the bill. If the bill gets watered down it will be less of an economic boost and help havens like the dollar which gain on economic uncertainty. 
 

Tech earnings

Apple, Tesla and Facebook are among the earnings highlights this week for the leading tech and FAANG stocks. Tech stocks have not fallen but have underperformed other parts of the stock market in 2021 until last week when big gains were made. Apple jumped 9% across the week to hit a record high amid hopes for a record holiday season of iPhone 12 sales.
 

Hang Seng

Hong Kong’s benchmark index came sharply off its highs (and the key 30,000 level mentioned in our Week Ahead video). The weakness came after the city ordered around 10,000 residents in the neighbourhood of Jordan to stay in their homes. Poorer neighbourhoods with cramped housing conditions are creating clusters of covid in the city’s fourth wave or the virus. The lockdowns if maintained would hit the economic recovery but the latest news in itself seems unlikely to dent bullishness from investors about China and the region.
 

DAY AHEAD 

*Times in GMT
09:00 – German IFO – Expectations (Jan) [93.2 Exp vs. 92.8 Prev]