Apples Reminds Us Who’s Boss

If you needed any more evidence that the stock market bulls are back in control, Apple added to the conversation today. 🗫

The consumer tech giant closed back above the $3 trillion market cap line for the first time since August, cementing its place as the only company to do so. 🤩

However, Microsoft’s artificial intelligence (AI) and cloud efforts keep the stock near all-time highs, with its market cap at $2.768 trillion. Saudi Aramco is close behind at $2.132 trillion but is suffering due to the recent energy slowdown.

So what is Apple’s secret sauce? Well, it sells many products and generates a lot of free cash flow. It also reduces the amount of shares available to the public market with aggressive stock buybacks. 💵

The chart below shows the stock’s journey to $3 trillion, along with its shares outstanding and free cash flow numbers over time. 📊

We’ll have to see if this stock market run can continue into 2024, as many are expecting. For now, bulls remain in control and are not afraid to show it… 🤷

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Investors Chew On New Opportunities

With the stock market looking to close out an epic fourth-quarter run and overall 2023, investors and traders continue to look for opportunities in beaten-down areas of the market. 🕵️‍♂️

One of the stocks popping up on traders’ radars today is online pet retailer Chewy. The last time we checked in on the stock was in September when the trend of investors ditching unprofitable companies pushed shares to new all-time lows.

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Stocks Break Their Win Streak

Nvidia’s evil plan to take over the stock market was put on hold today despite labor market data helping build the case for a June rate cut. 🤔

The February jobs report showed that nonfarm payrolls rose by 275,000, topping the 198,000 expected. However, the previous two months’ numbers were revised lower by 167,000 jobs, causing the unemployment rate to jump to 3.90% and signaling a further softening of the labor market. 🔻

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Traders Eye IPOs Into 2024

After a rough patch from late 2021 through 2022, this year, the initial public offering (IPO) tried to make a comeback. Now, traders say 2024 could be the year this turnaround really comes. 👍 

Below is a chart of the Renaissance IPO ETF ($IPO), which is up about 53% so far this year. But technical analysts and traders say that its recent breakout to roughly eighteen-month closing highs signals a critical trend change in prices. They argue that prices staying above the 35-37 range, which has previously served as an inflection point in the stock, would suggest momentum has shifted firmly to the upside. 🙃

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Chinese Stocks On The Rocks (Again)

One of the key themes we discussed last year was the underperformance of Chinese stocks. While India and other emerging markets rallied sharply (along with the rest of the world), China’s stock market was stuck in the mud because of slowing growth, weak consumer spending, a property market crisis, and geopolitical tensions. ⚠️

Unfortunately for emerging market investors, none of those core issues have improved in 2024, leading its stock market to fall even further to start the year. 😬

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