The recent Apple event, where the tech giant unveiled its latest slate of iPhones, Apple Watches, and AirPods, left investors unimpressed initially. Apple stock fell as the event kicked off but staged a late-day rally to close in the green. Despite hitting an all-time high in mid-July, Apple is currently almost 7% lower than those levels. However, Apple has still been the second-best performing stock among the “Magnificent Seven” over the last three months. Trailing only Tesla, Apple has managed to stay up more than 12% during this period.
Following their earnings report, Apple’s stock saw an increase in after-hours trading as the company posted results that beat expectations. This positive news has contributed to the stock’s overall performance in the last three months. The Technology Select Sector SPDR Fund (XLK), for comparison, is down about 4% over the same period, while the Nasdaq Composite is down around 1.5%. However, Apple has managed to outperform these broader indexes.
Brian Niccol’s first day as CEO of Starbucks saw a slight increase in the company’s stock price. Taking over from the embattled former chief, Laxman Narasimhan, who led the company to a 7.6% decline in shares during his tenure. In contrast, under Niccol’s leadership, Chipotle’s stock saw a significant increase of nearly 750%. Despite this success, Starbucks shares are down around 14% from their 52-week high last November.
Shares of Summit Therapeutics experienced a substantial 56% increase in value after their lung cancer drug showed better results than Merck’s Keytruda in Phase 3 trials. This surge marked the stock’s best day since May, where it jumped over 270%. Additionally, Summit’s stock has seen an incredible rise of over 630% this year, hitting an all-time high. The biotech sector has continued to show resilience and growth in the market.
Airlines emerged as strong performers in the market, with the US Global Jets ETF (JETS) gaining 2.6% in a single day. JetBlue led the pack with a more than 7% increase, following an upgrade from Bank of America to neutral from underperform. United Airlines also posted significant gains, up about 6%, making it the biggest gainer in the S&P 500. Despite challenges faced by the airline industry, some companies have shown promise in their recovery.
New members of the benchmark S&P 500 closed higher on Monday, with Palantir registering a 14% increase in stock price. Dell Technologies also saw a rise of almost 4%, contributing to its 40% increase year-to-date. Meanwhile, Erie Indemnity experienced a slight dip of 0.6%, despite being up more than 50% this year. These changes in the S&P 500 composition reflect ongoing shifts in market dynamics.
While Apple’s product launch may not have directly impacted their stock price, suppliers like Arm Holdings, Taiwan Semiconductor, Broadcom, AMD, and Cirrus Logic experienced positive movements. These companies play a crucial role in supporting Apple’s product ecosystem and have seen modest increases in their stock prices. The tech industry continues to be a key driver of innovation and growth in the market.
As the market continues to evolve, upcoming events such as AT&T’s John Stankey’s appearance and GameStop’s earnings report are anticipated to influence stock prices. Additionally, news related to banks like Wells Fargo, Citigroup, Bank of America, Morgan Stanley, and JPMorgan will be closely monitored. These developments will provide valuable insights into the financial sector’s performance and overall market trends.