Wall Street closed mixed as investors cheered Apple, but trade concerns weight
InvestingOnline.com
3/08/2018, 00:42On Thursday, Apple became the first US public company in history to reach $1 trillion in market value. $1,000,000,000,000. The Palo Alto company fueled market sentiment with Nasdaq and S&P moving up, while the Dow Jones posted losses amid trade war concerns.
Shares of Apple rallied for the second day in a row as it rose 2.92% on Thursday with the AAPL unit closing at 207.39. Apple is over 20% positive year to day.
1 Trillion dollar is a tremendous value, but Jim Cramer, Mad Money’s host, said that despite today’s valuation milestone, Apple still has a lot more room to run.
Scott Rutt, The Street analyst, highlighted the reason Cramer provided for his Apple vision. “First, he said shares of Apple have never been expensive, trading at just 15 times earnings, or 11.5 times if you factor in the company’s $243 billion in cash. Second, Apple is not a hardware company, it’s the world’s most effective ecosystem of software and services.”
“Fourth, Apple still has an enormous addressable market and even today is only the third largest cellphone maker,” Rutt added. “Lastly, Cramer noted that the law of large numbers doesn’t apply to subscription-based companies like Apple, and frankly, a trillion dollars isn’t what it used to be.”
US stocks on the positive sentiment
Apple daily chart August 2
The S&P 500 advanced 0.49% as it gained 13.86 points to close the day at 2,827.22. The NASDAQ Composite added 94.39 points or 1.24% to finish Thursday at 7,802.68.
On the other hand, the Dow Jones Industrial Average lost 7.66 points or 0.03% to end the sessional 25,326.16.
Most sectors finished Thursday up for the day. Only the telecommunication services closed negative with 0.07% losses on the day. The leader was, of course, the information technology sector with a 1.12% rally in the day.
Industrials closed 0.66% positive on the day, and the healthcare sector closed the day 0.56% positive.
