Is the Apple Sell-Off Over?
Apple (NASDAQ:AAPL) shares closed 2.18 percent up at $541.39 on Tuesday, recouping after having lost 8.88 percent of its value last week and closing 0.64 percent lower on Monday. The company got some good news from China on Tuesday, where wireless carrier China Unicom (NYSE:CHU) announced having received more than 300,000 pre-orders for the iPhone 5 in the first week. The phone reaches store shelves in the country on December 14.
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Apple also received a thumbs-up from analysts at Topeka Capital Markets, with the firm insisting that the company’s fundamentals continued to be strong despite the recent worries. According to Topeka, monthly sales data showed Apple was benefiting from above-average sales last month and that the stock’s selloff was more due to “irrational pessimism” than to fundamental weakness. “Everyone’s searching for something,” Topeka’s Brian White wrote in a note to investors, according to The Wall Street Journal.
According to White, the upcoming higher taxes due to the fiscal cliff remain “at the crux of the decline, which drives investor fears that the ‘other guy’ knows more than they do, further exacerbating the selling pressure.”
Apple had closed at an all-time high of $702.10 on September 19 on the excitement around the launch of the iPhone. Since then, though, it dropped a massive 24.52 percent until close of trading on Monday.
The Dow Jones Industrial Average also added to gains on Tuesday to be up 79.02 points, led by Hewlett-Packard (NYSE:HPQ) and Intel (NASDAQ:INTC), while the S&P 500 ended at its best level since Election Day, up 9.31 points at 1,427.86. The Nasdaq Composite Index was up 35.34 points, or 1.18 percent, at 3,022.30.
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