Apple Inc. (AAPL Stock) set to resume gains amid iPhone 12 rethink, stimulus hopes
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UNLOCK OFFER- NASDAQ: AAPL is set to resume its gains after a couple of down days.
- Investors are reassessing Apple's iPhone 12 and its 5G capacities.
- Hopes for generous stimulus talks are lifting the broader market.
AAPL stock is set to rise by over 1% on Monday, at least according to pre-market trading – and for two good reasons.
First, investors are rethinking their reaction to Apple's release of its new iPhone models. The response to the October 13 launch was a "buy the rumor, sell the fact" – as leaks ahead of the autumn event were merely confirmed by the Cupertino-based firm. Markets that had propped up Apple stock ahead of the launch, sold it afterward.
However, after the dust settled, investors find reasons for Apple's shares to rise. The firm presented several models, appealing to different audiences and thus potentially enlarging its market. That is different from the road that Apple previously took – and the same applies for its choice of the type of 5G, which is the more standard sub-6 one. Again, the standout tech firm is choosing a beaten path, perhaps unimpressive to its fans, but appealing to Wall Street.
The second reason for Monday's potential gain in AAPL stock is the broader move in markets. President Donald Trump stated he wants a larger fiscal relief package than Democrats, raising hopes for a deal. While some are skeptical that he has the backing of Senate Republicans, most are joining the optimistic bandwagon.
Investors, including in Apple stock, would like to see the federal government boost the economy that has yet to fully recover from the coronavirus crisis. Even if beneficiaries of unemployment insurance do not use the funds to purchase a shiny iPhone 12, Apple's shares are rising on such prospects.
Apple share price
AAPL stock is changing hands at above $120 at the time of writing, above Friday's close of $119.02 yet below Thursday's final price of $120.71. Critical resistance is at $124.40, which was the closing price of Apple stock before the iPhone 12 announcement.
See 2020 Elections: Seven reasons why this is not 2016, time to focus on the Senate
- NASDAQ: AAPL is set to resume its gains after a couple of down days.
- Investors are reassessing Apple's iPhone 12 and its 5G capacities.
- Hopes for generous stimulus talks are lifting the broader market.
AAPL stock is set to rise by over 1% on Monday, at least according to pre-market trading – and for two good reasons.
First, investors are rethinking their reaction to Apple's release of its new iPhone models. The response to the October 13 launch was a "buy the rumor, sell the fact" – as leaks ahead of the autumn event were merely confirmed by the Cupertino-based firm. Markets that had propped up Apple stock ahead of the launch, sold it afterward.
However, after the dust settled, investors find reasons for Apple's shares to rise. The firm presented several models, appealing to different audiences and thus potentially enlarging its market. That is different from the road that Apple previously took – and the same applies for its choice of the type of 5G, which is the more standard sub-6 one. Again, the standout tech firm is choosing a beaten path, perhaps unimpressive to its fans, but appealing to Wall Street.
The second reason for Monday's potential gain in AAPL stock is the broader move in markets. President Donald Trump stated he wants a larger fiscal relief package than Democrats, raising hopes for a deal. While some are skeptical that he has the backing of Senate Republicans, most are joining the optimistic bandwagon.
Investors, including in Apple stock, would like to see the federal government boost the economy that has yet to fully recover from the coronavirus crisis. Even if beneficiaries of unemployment insurance do not use the funds to purchase a shiny iPhone 12, Apple's shares are rising on such prospects.
Apple share price
AAPL stock is changing hands at above $120 at the time of writing, above Friday's close of $119.02 yet below Thursday's final price of $120.71. Critical resistance is at $124.40, which was the closing price of Apple stock before the iPhone 12 announcement.
See 2020 Elections: Seven reasons why this is not 2016, time to focus on the Senate
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