Recent weeks have seen the stock fail to live up to its reputation as a haven. Concerns over China and recent growth trends — coupled with central bank policy that has contributed to the tech sector falling into a correction — has erased nearly $240 billion in value this month alone. Since the end of July, Apple is down 12%, compared with the Nasdaq 100 Index’s 5.8% decline.
This time around, Apple’s weak momentum is one reason why the S&P 500 tech sector entered correction territory, and why Ned Davis Research lowered its view on big tech. “High-quality stocks tend to be more resilient in challenging periods, and Apple really embodies the quality theme, with its cash flow, buybacks, and balance sheet,” said Sam Stovall, chief investment strategist at CFRA.
“A lot of people hide out in Apple, on the idea that its cash flows are so reliable its safer,” said Dennis Dick, head trader at Triple D Trading Inc. “However, a lot of tech got very overbought, and if momentum breaks, then safety trades stop looking safe.”Recent market weakness has resulted in just 61% of Nasdaq 100 components trading above their 200-day moving average, as of the latest close. This is near the lowest ratio since March, and down from a recent peak of 84%.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BNNBloomberg - 🏆 83. / 50 Read more »
Source: SaltWire Network - 🏆 45. / 63 Read more »